16 August 2019 Afternoon Session Analysis
NZD slumps as businesses dwindle.
New Zealand dollar received some bearish pressure following the release of economic data from the region this morning. For the month of July, Business NZ Purchasing Manager Index slumped into contraction region with a reading of 48.2, missing economists’ forecast for a rise to 51.8. The data sent worrisome signals across the market as it came in line with global economic outlook which is skewed towards bearish. The release of the report came in after Reserve Bank of New Zealand’s Governor Adrian Orr emphasized that they would respond to low inflationary pressure by lowering their interest rates further. Due to increasing expectation that the central bank would ease their monetary policy further, investors have shifted their portfolio into safe-haven assets such as Japanese Yen. As of writing, pair of NZD/USD slumped 0.24% to 0.6431. On the other hand, pair of GBP/USD was traded flat around 1.2086. The demand for pound sterling remains tepid given the risk that UK Prime Minister Boris Johnson may deliver a hard Brexit on 31st October 2019 without any transitional trade agreement with European Union, potentially sparking economic turmoil in the short-term.
As for commodities market, crude oil price rose 0.62% to $55.00 per barrel. Oil prices received some bullish support after strong economic data from the US on yesterday helped to ease recession worries in the global market. Otherwise, gold price depreciates by 0.08% to $1,522.03 a troy ounce following a rebound in the US dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
19:00 CrudeOIL OPEC Monthly Report
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:30 | USD – Building Permits (Jul) | 1.232M | 1.270M | – |
| 22:00 | USD – Michigan Consumer Sentiment (Aug) | 98.4 | 97.2 | – |
| 1:00
(17th) |
USD – U.S. Baker Hughes Oil Rig Count | 764 | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior breakout above the previous resistance level 97.90. MACD which illustrate ongoing bullish momentum suggest the dollar to extend its gains towards the resistance level 98.50.
Resistance level: 98.50, 99.20
Support level: 97.90, 97.10
GBPUSD, H4: GBPUSD was traded lower following prior breakout below the previous support level 1.2100. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses towards the support level 1.1955.
Resistance level: 1.2100, 1.2245
Support level: 1.1955, 1.1775
EURUSD, H4: EURUSD was traded lower while currently testing the support level 1.1100. MACD which illustrate persistent bearish momentum signal suggest the pair to extend it losses after it breaks below the support level.
Resistance level: 1.1170, 1.1275
Support level: 1.1100, 1.1015
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level 106.25. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to experience a short term technical correction towards the support level 105.45.
Resistance level: 106.25, 106.90
Support level: 105.45, 104.70
AUDUSD, H4: AUDUSD remain traded in a sideway channel following recent rebound form the support level 0.6760. MACD which illustrate bullish momentum signals suggest the pair to be traded higher towards the resistance level 0.6825.
Resistance level: 0.6825, 0.6865
Support level: 0.6760, 0.6695
NZDUSD, H4: NZDUSD was traded lower while currently testing near the support level 0.6430. However, MACD which illustrate bullish momentum signal suggest the pair to experience a technical correction in short term towards the resistance level 0.6505.
Resistance level: 0.6505, 0.6585
Support level: 0.6430, 0.6375
USDCAD, H4: USDCAD was traded lower following prior retracement from the resistance level 1.3335. MACD which illustrate diminishing bullish momentum suggest the pair to extend its retracement towards the support level 1.3290.
Resistance level: 1.3335, 1.3380
Support level: 1.3290, 1.3230
USDCHF, H4: USDCHF was traded higher following prior breakout above the previous resistance level 0.9800. MACD which illustrate bullish momentum signal suggest the pair to extend its gains towards the resistance level 0.9800.
Resistance level: 0.9800, 0.9840
Support level: 0.9755, 0.9705
CrudeOIL, H4: Crude oil price was traded higher while currently testing near the resistance level 55.55. MACD which illustrate diminishing bearish momentum suggest the commodity to extend its gains after it breaks above the resistance level.
Resistance level: 55.55, 57.45
Support level: 53.05, 50.45
GOLD_, H4: Gold price was traded lower while currently testing near the support level 1515.55. MACD which illustrate diminishing bullish momentum suggest the commodity to extend its losses after it breaks below the support level.
Resistance level: 1535.00, 1555.75
Support level: 1515.55, 1495.60