12 August 2020 Afternoon Session Analysis
Kiwi retreated following dovish tone from RBNZ.
The New Zealand dollar which known as Kiwi failed to extend its gains and hit hardly during early trading session today as Reserve Bank of New Zealand (RBNZ) dovish comment with regard to the unfolding policy, faded the shininess of Kiwi. In earlier today, RBNZ Committee unanimously agreed to remain its interest rate unchanged at 0.25%, while remains open for additional stimulus tool in the future if economy condition turn sourer. As an effort to limit the damage of covid-19 toward the nation economy, RBNZ have passed through the committees to expand the Large Scale Asset Purchase (LSAP) programme up to $100 billion. In the press conference of RBNZ, Adrian Orr reiterated that negative rate remain in active preparation in upcoming meeting. Moreover, there are few clusters appeared in New Zealand last week, urging the alert level of country to level 2. Therefore, New Zealand government decided to re-impose lockdown measures in certain area for 3 days. As of writing, the pair of NZD/USD dropped 0.44% to 0.6545.
In the commodities market, crude oil price appreciated by 0.34% to $41.75 per barrel after Russia announced that the first vaccine development has successfully completed and will be registered officially today. The positive news from vaccine development increased the market hopes over the demand’s recovery of oil market. Besides, gold price depreciated by 1.90% to $1875.50 a troy ounce as market risk behaviour surged following the positive news of vaccine released.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
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Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | GBP – GDP (MoM) | 1.8% | 8.0% | – |
| 14:00 | GBP – Manufacturing Production (MoM) (Jun) | 8.4% | 10.0% | – |
| 14:00 | GBP – Monthly GDP 3M/3M Change | -19.1% | – | – |
| 20:30 | USD – Core CPI (MoM) (Jul) | 0.2% | 0.2% | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | -7.373M | -2.875M | – |
Technical Analysis
DOLLAR_INDX, Weekly: Dollar index was traded lower while currently testing the support level at 93.30. However, MACD which illustrated diminishing bearish momentum suggest the index to be traded higher in short-term as technical correction.
Resistance level: 95.55, 97.65
Support level: 93.30, 91.30
GBPUSD, H1: GBPUSD was traded lower while currently near the support level at 1.3010. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3095, 1.3175
Support level: 1.3010, 1.2925
EURUSD, H4: EURUSD was traded lower while currently testing the support level at 1.1715. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.1800, 1.1900
Support level: 1.1715, 1.1590
USDJPY, H4: USDJPY was traded higher following prior breakout above the previous resistance level at 106.40. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 107.35.
Resistance level: 107.35, 108.40
Support level: 106.40, 105.35
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level at 0.7105. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7230, 0.7330
Support level: 0.7105, 0.7015
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level at 0.6530. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.6575, 0.6625
Support level: 0.6530, 0.6465
USDCAD, H1: USDCAD was traded higher while currently testing the resistance level at 1.3340. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.3340, 1.3390
Support level: 1.3255, 1.3160
USDCHF, H4: USDCHF was traded higher while currently testing the resistance level at 0.9195. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.9195, 0.9330
Support level: 0.9060, 0.8860
CrudeOIL, H4: Crude oil price was traded lower following prior breakout below the previous support level at 42.10. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses toward support level at 40.95.
Resistance level: 42.10, 43.05
Support level: 40.95, 40.05
GOLD_, H4: Gold price was traded lower while currently testing the support level at 1870.30. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses after it successfully breakout below the support level.
Resistance level: 1910.05, 1940.95
Support level: 1870.30, 1817.15