07 August 2020 Afternoon Session Analysis
Aussie plummets amid RBA expect longer recovery.
During late Asian, the Aussie dollar which traded against the greenback and other currency pair have fell following dovish note from RBA statement. According to the report, the pace of Australia’s economic recovery could be slower than what was expected in May. The central bank also stated that the underlying inflation is likely to remain at low level due to weak wage growth and substantial spare capacity in the economy and projected an economic contraction of 6% over 2020. In addition, the bank expects the unemployment rate is expected to rise to almost 10% over the next six months. At the same time, the unemployment rate in the country is also expected to grow to almost 10% over the next six months. Following the dovish tone, the Aussie have experience a certain amount of selling pressure, thus dragging it price lower. At the time of writing, AUD/USD slips 0.39% to 0.7205.
In the commodities market, crude oil price extend losses and fell 0.09% to $41.77 per barrel as of writing following uncertainty over US stimulus continue to weigh on the market and weakening fuel demand. As of now, the re-emergence of coronavirus infection remained as the key point that dragged the sentiment. On the other hand, the lack of progress in talks between the White House and Democrats over stimulus package also added further selling reason. On the other hand, gold price retreats 0.47% to $2053.32 a troy ounce at the time of writing following profit taking after its recent continuous rally.
Today’s Holiday Market Close
Time Market Event
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Today’s Highlight Events
Time Market Event
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Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:30 | USD – Nonfarm Payrolls (Jul) | 4,800K | 1,600K | – |
| 20:30 | USD – Unemployment Rate (Jul) | 11.1% | 10.5% | – |
| 20:30 | CAD – Employment Change (Jul) | 952.9K | 400.0K | – |
| 22:00 | CAD – Ivey PMI (Jul) | 58.2 | 57.5 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior rebound from the support level at 92.55. MACD which illustrate bullish momentum signal suggest the dollar to extend its gains toward the resistance level at 94.10.
Resistance level: 94.10, 95.95
Support level: 92.55, 91.45
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level at 1.3150. MACD which illustrate bearish bias momentum signal suggest the pair to extend its losses toward the support level at 1.3060.
Resistance level: 1.3150, 1.3245
Support level: 1.3060, 1.2985
EURUSD, H4: EURUSD was traded lower while currently testing the support level at 1.1830. MACD which illustrate bearish bias momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.1900, 1.1985
Support level: 1.1830, 1.1775
USDJPY, H4: USDJPY was traded higher following prior rebound from the lower level. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its gains toward the resistance level at 106.15.
Resistance level: 106.15, 106.95
Support level: 105.05, 104.30
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the resistance level at 0.7235. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its losses toward the support level at 0.7175.
Resistance level: 0.7235, 0.7290
Support level: 0.7175, 0.7120
NZDUSD, Daily: NZDUSD was traded higher following prior rebound from the support level at 0.6580. MACD which illustrate diminishing bearish momentum suggest the pair to extend its rebound toward the resistance level at 0.6755.
Resistance level: 0.6755, 0.6920
Support level: 0.6580, 0.6480
USDCAD, Daily: USDCAD was traded higher while currently testing the resistance level at 1.3335. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.3335, 1.3505
Support level: 1.3210, 1.3045
USDCHF, H4: USDCHF was traded higher following prior breakout above the previous resistance level at 0.9125. MACD which illustrate bullish bias momentum signal suggest the pair to extend its gains toward the resistance level at 0.9170.
Resistance level: 0.9170, 0.9220
Support level: 0.9125, 0.9065
CrudeOIL, H4: Crude oil price was traded lower following prior breakout below the previous support level at 42.10. MACD which illustrate bearish bias momentum signal suggest the commodity to extend its losses toward the support level at 41.15.
Resistance level: 42.10, 42.95
Support level: 41.15, 40.45
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level at 2074.75. MACD which illustrate diminishing bullish momentum signal suggest the commodity to extend its losses toward the support level at 2046.15.
Resistance level: 2074.75, 2103.35
Support level: 2046.15, 2011.05