9 January 2020 Afternoon Session Analysis
Positive data buoyed the demand for AUD.
Australian dollar rebounds from its lower level over the backdrop of positive economic data as well as diminishing tension in between US and Iran. As of writing, pair of AUD/USD rose 0.15% to 0.6875. According to Australian Bureau of Statistics, Trade Balance for the month of November came in with a higher surplus of 5.80 billion, significantly higher than forecast of 4.15 billion. A sharp recovery in trade is widely due to resources exports while coupled with weaker exchange rate of Australian dollar which helped services exports as well. In addition, the pair received additional bullish support after US and Iran backed away from the brink of conflict in the Middle East. In a speech delivered by US President Donald Trump yesterday, he stated that Washington will retaliate upon Iranian attack on US forces with sanctions and not violence. Likewise, Iran offered no immediate signal to respond further after US assassinate one of its senior military commanders last Friday. However, gains on the Australian dollar remains limited as November’s import contracted by -3%. A contraction in imports spur concerns over domestic consumption which may led to mediocre recovery in inflationary pressure. For the time being, investors will continue to scrutinize upon economic data from Australia as well as geopolitical development in the Middle East to gauge market sentiment.
As for commodities market, crude oil price recovered its losses by 0.12% to $60.06 per barrel. Oil price slumped more than 5% on yesterday following diminishing tension in between US and Iran which has dialed down speculation over possible oil shortage from the Middle East. On the other hand, gold price rebounds by 0.26% to $1,559.78 a troy ounce as investors due to ongoing risks in the market such as Brexit issues in the UK.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
17.30 GBP BoE Gov Carney Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 21.30 | USD – Initial Jobless Claims | 222K | 220K | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher while currently testing the resistance level at 97.00. MACD which illustrated increasing bullish momentum suggest the index to extend its gains after it successfully breakout above the resistance level.
Resistance level: 97.00, 97.60
Support level: 96.65, 96.15
GBPUSD, H1: GBPUSD was traded higher following prior rebound from the support level at 1.3100. MACD which illustrated increasing bullish momentum suggest the pair to extend its gians toward resistance level at 1.3175.
Resistance level: 1.3175, 1.3225
Support level: 1.3100, 1.3045
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level at 1.1105. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 1.1140.
Resistance level: 1.1140, 1.1195
Support level: 1.1105, 1.1070
USDJPY, Daily: USDJPY was traded higher following prior break out above the previous resistance level at 108.75. MACD which illustrated diminishing bullish momentum suggest the pair to extend its gains toward resistance level at 109.65.
Resistance level: 109.65, 110.55
Support level: 108.75, 107.70
AUDUSD, Daily: AUDUSD was traded lower while currently testing the support level at 0.6865. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.6915, 0.6965
Support level: 0.6865, 0.6810
NZDUSD, H4: NZDUSD was traded higher following prior rebound from the support level at 0.6620. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.6675.
Resistance level: 0.6675, 0.6735
Support level: 0.6620, 0.6560
USDCAD, H4: USDCAD was traded higher while currently testing the resistance level at 1.3045. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.3045, 1.3110
Support level: 1.2965, 1.2905
USDCHF, H4: USDCHF was traded higher while currently testing the resistance level at 0.9740. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.9740, 0.9810
Support level: 0.9670, 0.9585
CrudeOIL, Daily: Crude oil price was traded lower following prior breakout below the previous support level at 60.75. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses toward the support level at 58.40.
Resistance level: 60.75, 62.45
Support level: 58.40, 56.65
GOLD_, H1: Gold price was traded lower while currently testing the support level at 1552.15. MACD which illustrated diminishing bearish momentum suggest the commodity to be traded higher in short-term as technical correction.
Resistance level: 1582.00, 1608.90
Support level: 1552.15, 1517.65