2 March 2021 Morning Session Analysis
Dollar surged amid US Treasury yield steadied.
The dollar index which gauges its value against a basket of six major currencies was having a mixed pattern yesterday, but eventually ended the session at a higher level as US 10-year treasury yield stabled in anticipation of accelerated economic recovery. Since last week, US treasury yield has been surging significantly, shattered its highest-level record in more than one year while directly exerting tremendous bullish momentum in the market of dollar index. The jump in treasury yield implies a bet that global central bankers such as Federal Reserve will tighten their monetary policy earlier than expectation as global economy has been entered into a strong recovery stage, with the effort of ongoing vaccination program. Besides, dollar index moved higher after US reported a better-than-expectation data from manufacturing sector. According to the ISM, US Manufacturing PMI came in at 60.8, stronger than the economist forecast at 58.8, reaffirmed the market’s view that US economic condition are recovering from the fallout of pandemic. During Asian early trading session, US dollar rose 0.14% to 91.00.
In the commodities market, the crude oil price depreciated by 0.10% to $60.10 per barrel as market participants speculate that the OPEC+ will put more oil back to the market in order stabilize the oil market equilibrium. However, most of the investors are still waiting for the final decision from OPEC+ to gauge the further direction of oil price. Besides, the gold price drops 0.06% to $1723.95 amid strengthening of US dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
11:30 AUD RBA Rate Statement
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 11:30 | AUD – RBA Interest Rate Decision | 0.10% | 0.10% | – |
| 16:55 | EUR – German Unemployment Change (Feb) | -41K | -13K | – |
| 21:30 | CAD – GDP (MoM)(Dec) | 0.7% | 0.3% | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior breakout above the previous resistance level at 90.90. However, MACD which illustrated diminishing bullish momentum suggest the index to undergo technical correction in short term.
Resistance level: 91.55, 92.10
Support level: 90.90, 90.45
GBPUSD, H4: GBPUSD was traded lower following prior breakout below the previous support level at 1.3945. However, MACD which illustrated diminishing bearish momentum suggest the pair to undergo technical correction in short term.
Resistance level: 1.3945, 1.4010
Support level: 1.3845, 1.3755
EURUSD, H4: EURUSD was traded lower following prior breakout below the previous support level at 1.2065. However, MACD which illustrated diminishing bearish momentum suggest the pair to undergo technical correction in short term.
Resistance level: 1.2065, 1.2105
Support level: 1.2015, 1.1950
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level at 106.75. However, MACD which illustrated diminishing bullish momentum signal suggest the pair to undergo technical correction in short term.
Resistance level: 106.75, 107.10
Support level: 106.45, 106.10
AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level at 0.7775. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains after its candle successfully breakout above the resistance level at 0.7775.
Resistance level: 0.7775, 0.7815
Support level: 0.7735, 0.7700
NZDUSD, H4: NZDUSD was traded higher following prior rebound from the support level at 0.7225. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 0.7290.
Resistance level: 0.7290, 0.7335
Support level: 0.7225, 0.7165
USDCAD, H4: USDCAD was traded lower following prior breakout below the previous support level at 1.2685. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its losses toward the support level at 1.2610.
Resistance level: 1.2685, 1.2770
Support level: 1.2610, 1.2555
USDCHF, H4: USDCHF was traded higher following prior breakout above the previous resistance level at 0.9125. MACD which illustrated bullish bias momentum suggest the pair to extend its gains toward the resistance level at 0.9180.
Resistance level: 0.9180, 0.9225
Support level: 0.9125, 0.9090
CrudeOIL, H4: Crude oil price was traded lower following prior breakout below the previous support level at 60.65. MACD which illustrated bearish bias momentum suggest the commodity to extend its losses toward the support level at 59.80.
Resistance level: 60.65, 61.70
Support level: 59.80, 58.70
GOLD_, H4: Gold price was traded lower following prior breakout below the previous support level at 1738.10. MACD which illustrated bearish momentum suggest the commodity to extend its losses toward the support level at 1716.70.
Resistance level: 1738.10, 1765.15
Support level: 1716.70, 1698.30