21 August 2020 Afternoon Session Analysis
Aussie surged amid upbeat economic data.
The Australian Dollar surged over the backdrop of the upbeats data from the Australian region. According to Australian Bureau of Statistics (ABS), the Australian Retail Sales for July had notched up significantly from the previous reading of 3.3% to 2.7%. Such better-than-expected economic data had dialled up the market optimism toward the economic progression from the Australia region, which spurring significant demand on the Australian dollar. On the coronavirus front, the new coronavirus infections from the Victoria state had dropped to 179, the lowest in five weeks on Thursday. Besides that, the People’s Bank of China has injected a net 160 billion yuan into the financial system in order to boost up the liquidity and solvency ratio by 490-billion-yuan last week. Hence, the sentiment had also sparkled positive prospect for the China’s economy in the future, while increasing the market demand for the China-proxy currencies Australian dollar. Nonetheless, at this time investors would scrutinize the latest updates with regards of the trade negotiation between US and China as well as the coronavirus development in order to gauge the likelihood movement for the currency. As of writing, the AUD/USD appreciated by 0.15% to 0.7200.
In the commodities market, the crude oil price surged 0.48% to $42.87 per barrel as of writing. The crude oil price extends its gains for a third straight week, buoyed by major oil producers’ effort to reduce the output amid concerns about the economic recovery from the coronavirus pandemic. On the other hand, the gold price appreciated by 0.08% to $1948.40 per troy ounces amid risk-off sentiment in the FX market following the United Stated published negative economic data on yesterday.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | GBP – Retail Sales (MoM)(Jul) | 13.9% | 2.0% | – |
| 15:30 | EUR – German Manufacturing PMI (Aug) | 51.0 | 52.5 | – |
| 16:30 | GBP – Composite PMI | 57.0 | – | – |
| 16:30 | GBP – Manufacturing PMI | 53.3 | – | – |
| 16:30 | GBP – Services PMI | 56.5 | – | – |
| 20:30 | CAD – Core Retail Sales (MoM)(Jun) | 10.6% | 15.0% | – |
| 22:00 | USD – Existing Home Sales (Jul) | 4.72M | 5.38M | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded lower while currently testing the support level at 92.55. However, MACD which illustrated diminishing bearish momentum suggest the index to be traded higher in short-term as technical correction.
Resistance level: 93.25, 93.80
Support level: 92.55, 92.05
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level at 1.3250. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.3250, 1.3340
Support level: 1.3175, 1.3105
EURUSD, H4: EURUSD was traded higher while currently near the resistance level at 1.1900. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.1900, 1.2040
Support level: 1.1790, 1.1710
USDJPY, Daily: USDJPY was traded lower following prior retracement from the resistance level at 106.40. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 105.30.
Resistance level: 106.40, 107.35
Support level: 105.30, 104.25
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support level at 0.7130. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 0.7240.
Resistance level: 0.7240, 0.7330
Support level: 0.7130, 0.7015
NZDUSD, H4: NZDUSD was traded higher following prior rebound from the support level at 0.6520. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 0.6575.
Resistance level: 0.6575, 0.6625
Support level: 0.6520, 0.6465
USDCAD, H4: USDCAD was traded lower following prior retracement from the resistance level at 1.3235. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 1.3140.
Resistance level: 1.3235, 1.3315
Support level: 1.3140, 1.3010
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level at 0.9195. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 0.9030.
Resistance level: 0.9195, 0.9330
Support level: 0.9030, 0.8860
CrudeOIL, H1: Crude oil price was traded higher while currently testing the resistance level at 43.05. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 43.05, 43.90
Support level: 41.70, 40.95
GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1959.45. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1959.45, 1989.15
Support level: 1927.60, 1906.85