7 April 2020 Morning Session Analysis
Pound sterling dips amid pessimistic economic data.
Among all the major currencies market, pound sterling plummeted against other currencies following the release of downbeat construction data in UK. According to CIPS, UK Construction PMI came in at a reading of 39.3, weaker than the economist expectation of 44.0 as Covid-19 restriction halted the construction activity across the entire nation. Since the outbreak of coronavirus, global economy has been affected tremendously, while no any indication of weakening in virus spreading. A series of bleak data from UK shows that the economy is contracting in a fastest pace since the economic crisis. The full damage on UK nation is doomed to reflect during UK spring time as the pandemic of virus is getting worse. Moreover, pound’s outlook turned sour as the news of Boris Johnson was admitted to hospital created fresh uncertainty. According to CNBC, a spokesman from Downing Street revealed that UK Prime Minister Boris Johnson suffered from persistent symptoms of virus, running with high temperature. Hence, a ‘precautionary step’ is forced to be taken in order to avoid unnecessary outcome happened. Despite, Boris Johnson is still in charge of the government and in contact with ministerial. As of writing, the pair of GBP/USD notched down 0.20% to 1.2205.
In the commodities market, crude oil price appreciated by 1.19% to $26.38 per barrel as market participants are still remain optimistic toward the prospect of this black commodity market despite a postponement on meeting between Saudi Arabia and Russia. The meeting was precedingly scheduled to held on Monday in order to discuss the issue of oil output. Besides, gold price quoted up 0.25% to $1,667.30 a troy ounce amid heightening of virus’s uncertainty.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
12:30 AUD RBA Rate Statement
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 12:30 | AUD – RBA Interest Rate Decision (Apr) | 0.25% | 0.25% | – |
| 22:00 | USD – JOLTs Job Openings (Feb) | 6.963M | 6.476M | – |
| 22:00 | CAD – Ivey PMI (Mar) | 54.1 | 41.0 | – |
| 04:30
(8th) |
CrudeOIL – API Weekly Crude Oil Stock | 10.485M | – | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher following prior breakout above the previous resistance level at 99.80. MACD which illustrate diminishing bearish momentum suggest the dollar to extend its gains toward the resistance level at 101.20.
Resistance level: 101.20, 102.90
Support level: 99.80, 98.30
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.2215. MACD which illustrate bearish bias momentum suggest the pair to extend its losses after it successfully breakout below the support level at 1.2215.
Resistance level: 1.2340, 1.2470
Support level: 1.2215, 1.2115
EURUSD, Daily: EURUSD was traded lower while currently testing the support level at 1.0765. MACD which illustrate bearish bias momentum suggests the pair to extend its losses after it successfully breakout below the support level at 1.0765.
Resistance level: 1.0830, 1.0940
Support level: 1.0765, 1.0655
USDJPY, Daily: USDJPY was traded higher while currently testing the resistance level at 109.25. MACD which illustrate diminishing bearish momentum signal suggests the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 109.25, 110.10
Support level: 108.55, 107.50
AUDUSD, Daily: AUDUSD was traded higher following prior rebound from the support level at 0.5975. MACD which illustrate bullish bias momentum suggest the pair to extend its gains toward the resistance level at 0.6180.
Resistance level: 0.6180, 0.6460
Support level: 0.5975, 0.5720
NZDUSD, Daily: NZDUSD was traded higher following prior rebound from the support level at 0.5865. MACD which illustrate bullish bias momentum suggest the pair to extend its gains toward the resistance level at 0.6075.
Resistance level: 0.6075, 0.6250
Support level: 0.5865, 0.5620
USDCAD, H4: USDCAD was traded lower while currently testing the support level at 1.4105. Due to lack of signal from MACD, it is suggested to wait for further confirmation such as breakout or rebound before entering into the market.
Resistance level: 1.4240, 1.4390
Support level: 1.4105, 1.3990
USDCHF, H4: USDCHF was traded lower while currently testing the upward trendline. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the upward trendline.
Resistance level: 0.9825, 0.9900
Support level: 0.9745, 0.9685
CrudeOIL, H1: Crude oil price was traded higher following prior rebound from the support level at 25.90. MACD which illustrate diminishing bearish momentum suggest the commodity to extend its rebound toward the resistance level at 27.40.
Resistance level: 27.40, 28.75
Support level: 25.90, 23.90
GOLD_, H1: Gold price was traded higher following prior breakout above the previous resistance level at 1663.80. However, MACD which illustrate diminishing bullish momentum suggest the commodity to undergo technical correction in short term toward the support level at 1663.80.
Resistance level: 1681.50, 1701.20
Support level: 1663.80, 1651.40