22 September 2020 Afternoon Session Analysis
Aussie slumped over the dovish statement.
The Australian Dollar slumped following the Reserve Bank Australia unleashed dovish statement with regards of the monetary policy in future. According to the latest monetary statement, the Deputy Governor Guy Debelle claimed in the early morning that the Australia central bank is assessing various monetary policy options including the currency market intervention strategy and extreme expansionary monetary policy in order to achieve its inflation and employment goals. The first option for the central bank’s policy is to buy bonds with maturities beyond three years in order to lower the longer-dated government bond rates. Besides, he also reiterated that foreign exchange intervention was another potential policy option that would definitely be beneficial for the Australia’s economy since it may able to boost up the Australia’s current account value. Nonetheless, they will be continuing to eye on global growth risk, more stimulus such as negative interest rates would be anticipated if the course of events urges their economy growth goes against their expectation. As of writing, AUD/USD depreciated by 0.15% to 0.7210.
In the commodities market, the crude oil price slumped 0.28% to $39.65 per barrels as of writing amid the spiking number of the coronavirus had weighed the market demand on the crude oil commodity on Monday. According to the latest data, the coronavirus cases had surged up more than 30 million worldwide while the British Prime Minister Boris Johnson was pondering a second national lockdown following U.K. registered over 37,000 deaths from nearly 340,000 cases. On the other hand, the gold price slumped 0.15% to $1909.40 per troy ounce as of writing as hopes of aggressive monetary stimulus from the Federal Reserve faded. Nonetheless, investors would continue to scrutinize the latest updates with regards of the speeches from Federal committee members in order to gauge the likelihood movement for the commodity.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
22.30 USD Fed Chair Powell Testifies
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 22.00 | USD – Existing Home Sales (Aug) | 5.86M | 6.00M | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher following prior rebound from the lower level. MACD which illustrated bullish bias momentum suggest the index to extend its gains toward the resistance level at 94.10.
Resistance level: 94.10, 94.90
Support level: 92.10, 91.45
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the support level at 1.2780. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 1.2915.
Resistance level: 1.2915, 1.3045
Support level: 1.2780, 1.2715
EURUSD, H4: EURUSD was traded higher following prior rebound from the lower level. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its gains toward the resistance level at 1.1775.
Resistance level: 1.1775, 1.1840
Support level: 1.1705, 1.1620
USDJPY, Daily: USDJPY was traded higher following prior rebound from the support level at 104.30. MACD which illustrates diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 105.20.
Resistance level: 105.20, 106.15
Support level: 104.30, 103.05
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support level at 0.7205. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 0.7265.
Resistance level: 0.7265, 0.7330
Support level: 0.7205, 0.7150
NZDUSD, Daily: NZDUSD was traded lower following prior breakout below the previous support level at 0.6685. MACD which illustrated bearish bias momentum suggest the pair to extend its losses toward the support level at 0.6615.
Resistance level: 0.6685, 0.6780
Support level: 0.6615, 0.6500
USDCAD, H4: USDCAD was traded higher while currently testing the resistance level at 1.3315. MACD which illustrate bullish bias momentum suggest the pair to extend its gains after it successfully breakout above the resistance level at 1.3315.
Resistance level: 1.3315, 1.3425
Support level: 1.3235, 1.3140
USDCHF, H4: USDCHF was traded higher following prior breakout above the previous resistance level at 0.9120. MACD which illustrates bullish bias momentum suggest the pair to extend its gains toward the resistance level at 0.9200.
Resistance level: 0.9200, 0.9295
Support level: 0.9120, 0.9050
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from the higher level. MACD which illustrate bearish bias momentum suggest the commodity to extend its losses toward the support level at 39.45.
Resistance level: 40.45, 41.50
Support level: 39.45, 38.70
GOLD_, Daily: Gold price was traded lower following prior breakout below the support level at 1926.40. MACD which illustrated bearish bias momentum suggest the commodity to extend its losses toward the support level at 1761.65.
Resistance level: 1926.40, 2069.75
Support level: 1761.65, 1552.90