23 January 2020 Afternoon Session Analysis
Aussie soars following jobs data.
The Australian dollar have climbs against its peers after jobs data showed an unexpected drop in unemployment. According to the Australian Bureau of Statistics, the Australian economy have added 28.9K jobs in December, higher than market expectation with the reading of 15K. Besides that, unemployment rate also improved to 5.1% which also surpassed market expectation of 5.2%. The unexpected results have provide a positive surprise and unwinding bets that the central bank will cut rates next month. As of Wednesday, expectations for a 25 basis point cut from the Reserve Bank of Australia (RBA) on 4 February sat at 56%. As of writing, AUD/USD soars 0.37% to 0.6869.
In the commodities market, crude oil price plummets 0.43% to $55.83 per barrel amid growing concerns over China coronavirus. As the death toll from the virus have risen to 17, travel restrictions were imposed on the city of 11 million from which it emerged, and the World Health Organization mulled whether to declare an international emergency. The effect of the virus may cause huge economic impact and cripple energy demand. In the other hand, gold price remains steady and rose 0.05% to $1559.35 a troy ounce as investors are undecided about the current sentiment for the commodity and awaits for further signal.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
20:45 EUR ECB Monetary Policy Statement
21:30 EUR ECB Press Conference
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:45 | EUR – Deposit Facility Rate (Jan) | -0.50% | -0.50% | – |
| 20:45 | EUR – ECB Marginal Lending Facility) | 0.25% | – | – |
| 20:45 | EUR – ECB Interest Rate Decision (Jan) | 0.00% | 0.00% | – |
Technical Analysis
DOLLAR_INDX, Daily：Dollar index was traded higher while currently testing the resistance level at 97.25. However, MACD which illustrate diminishing bullish momentum signal suggest the dollar to undergo technical correction for short term technical correction.
Resistance level: 97.25, 97.70
Support level: 96.85, 96.20
GBPUSD, H4: GBPUSD was traded higher following prior breakout above the previous resistance level at 1.3100. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to undergo technical correction toward the support level at 1.3100.
Resistance level: 1.3165, 1.3250
Support level: 1.3100, 1.3035
EURUSD, H4: EURUSD was traded lower following prior retracement from the higher level of downward channel. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its losses toward the support level at 1.1070.
Resistance level: 1.1110, 1.1160
Support level: 1.1075, 1.1035
USDJPY, H4: USDJPY was traded lower following prior breakout below the previous support level at 109.65. MACD which illustrate bearish bias momentum signal suggest the pair to extend its losses toward the support level at 109.25.
Resistance level: 109.65, 110.20
Support level: 109.25, 108.85
AUDUSD, H4: AUDUSD was traded higher following prior breakout above the previous resistance level at 0.6850. MACD which illustrate bullish momentum and the formation of golden cross suggest the pair to extend its gains toward the resistance level at 0.6880.
Resistance level: 0.6880, 0.6925
Support level: 0.6850, 0.6820
NZDUSD, H4: NZDUSD was traded lower following prior breakout below the previous support level at 0.6600. Due to lack of signal from MACD, it is suggested to wait for further confirmation before entering into market.
Resistance level: 0.6600, 0.6620
Support level: 0.6570, 0.6535
USDCAD, H4: USDCAD was traded higher following prior breakout above the previous resistance level at 1.3145. MACD which illustrate bullish bias momentum suggest the pair to extend its gains toward the resistance level at 1.3210.
Resistance level: 1.3210, 1.3265
Support level: 1.3145, 1.3085
USDCHF, H4: USDCHF was traded lower following prior breakout below the previous support level at 0.9690. MACD which illustrate bearish momentum and the formation of death cross suggest the pair to extend its losses toward the support level at 0.9665.
Resistance level: 0.9690, 0.9720
Support level: 0.9665, 0.9625
CrudeOIL, H4: Crude oil was traded lower following prior breakout below the previous support level at 56.35. MACD which illustrate bearish momentum signal suggests the commodity to extend its losses toward the support level at 55.25.
Resistance level: 56.35, 56.80
Support level: 55.25, 53.90
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level at 1561.85. Due to lack of signal from MACD, it is suggested to wait for further confirmation before entering into the market.
Resistance level: 1561.85, 1572.10
Support level: 1551.10, 1538.45