21 September 2021 Afternoon Session Analysis
New Zealand Kiwi slips following RBNZ dovish stance.
The New Zealand dollar which traded against the greenback and other currency pairs have fell over the backdrop of dovish note from the Reserve Bank of New Zealand (RBNZ). According to RBNZ Assistant Governor Christian Hawkesby, the central bank globally tends to follow a smoothed path and keep their policy rate unchanged due to uncertainty and risk. He conveyed the decision of Reserve Bank of New Zealand (RBNZ) to delay its rate hike in order to deliver stimulus to support the economic recovery. On top of that, ongoing fear towards China Evergrande woes also weigh heavily on the pair. The widespread speculation that Evergrande is on the verge of bankruptcy has diminishing the risk-on sentiment while prompting investors to shift their portfolio into US dollar as safe haven. The pair also extended its loss amid rising market speculation over Fed’s tapering announcement during its upcoming monetary policy meeting. The highly anticipated tapering monetary policy in US is expected to lower the money supply in circulation hence reiterated the appeal of US dollar. As of writing, the pair of NZD/USD slumped 0.11% to 0.7016.
In the commodities market, the crude oil price surged 0.2% to $70.79 per barrel as of writing amid the positive demand outlook. The oil price extended its gains following rising market optimism toward the vaccination campaign and easing lockdown restriction around the globe. On the other hand, the gold price was up 0.15% to $1758.50 per troy ounces as of writing amid risk-off market sentiment.
Today’s Holiday Market Close
Time Market Event
All Day CNY Mid-Autumn Festival
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:30 | USD – Building Permits (Aug) | 1.600M | 1.630M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing the support level 93.10. MACD which illustrate diminishing bullish momentum signal suggest the dollar to extend its losses after it breaks below the support level.
Resistance level: 93.70, 94.20
Support level: 93.10, 92.70
GBPUSD, H4: GBPUSD was traded lower while currently testing near the support level 1.3605. However, MACD which illustrate diminishing bearish momentum signals suggest the pair to experience a technical correction towards the resistance level 1.3765.
Resistance level: 1.3765, 1.3875
Support level: 1.3605, 1.3460
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level 1.1705. MACD which illustrate bullish momentum signal with the formation of golden cross suggest the pair to extend its gains towards the resistance level 1.1800.
Resistance level: 1.1800, 1.1885
Support level: 1.1705, 1.1625
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level 109.60. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its gains after it breaks above the resistance level.
Resistance level: 109.60, 110.20
Support level: 109.15, 108.65
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support level 0.7250. MACD which illustrate bullish bias signal with the formation of golden cross suggest the pair to extend its gains towards the resistance level 0.7335.
Resistance level: 0.7335, 0.7415
Support level: 0.7250, 0.7150
NZDUSD, H4: NZDUSD was traded lower while currently testing near the support level 0.6990. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to experience a technical correction towards the resistance level 0.7075.
Resistance level: 0.7075, 0.7145
Support level: 0.6990, 0.6920
USDCAD, H4: USDCAD was traded lower while currently testing the support level 1.2770. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 1.2870, 1.2955
Support level: 1.2770, 1.2685
USDCHF, H4: USDCHF was traded lower following recent retracement from the resistance level 0.9310. MACD which illustrate bearish momentum signal with the formation of death cross suggest the commodity to extend its losses towards the support level 0.9245.
Resistance level: 0.9310, 0.9375
Support level: 0.9245, 0.9200
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level 70.45. MACD which illustrate diminishing bearish momentum signal suggest the commodity to extend its rebound towards the resistance level 72.45.
Resistance level: 72.45, 74.30
Support level: 70.45, 68.05
GOLD, H4: Gold price was traded higher following prior rebound from the support level 1753.50. MACD which illustrate bullish momentum signal with the formation of golden cross suggest the commodity to extend its rebound towards the resistance level 1785.80.
Resistance level: 1785.80, 1806.85
Support level: 1753.05, 1725.50