28 March 2018 Daily Analysis
Losses in Greenback limited following retreat of US-China trade war.
Dollar index recovered by 0.33% from its five-week lows against a trade-weighted basket of major currencies, currently standing at 88.88 following an ease of fears over trade war between United States and China. In pursuing a win-win situation for both parties, Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer were reported to be involved in the negotiation – mainly on tariff reduction on imported cars, encouraging more purchase of U.S. made semiconductors (instead of those made from South Korea and Taiwan) as well as easing access for American businesses to China’s markets. According to Chinese officials, they are working to finalize rules within the next two months to enable foreign financial groups to take majority stakes in Chinese securities firms. The retreat of the potential trade war has limit losses endured by the Greenback following release of negative economic data yesterday with the Conference Board’s consumer confidence gauge missing the economists’ forecast of 131, last recorded at 127.7. On the other hand, EUR/USD fell 0.17% to $1.2411 attributable to a decline in the European Commission’s index for the Euro zone by 1.6 to 112.6 this month, reflecting a reducing market optimism towards the manufacturing, service and retail sectors in the region.
In the commodities market, crude oil price was down 0.46% to $64.85 per barrel while market participants await inventory data with expectation towards the U.S. crude stockpiles to continue its expansion following recent ramp up in domestic output. Likewise, gold price fell by 0.86% to $1346.68 a troy ounce following recent lift in the Greenback.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
00:00 (Thu) USD FOMC Member Bostic Speaks
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 08:00 | NZD – ANZ Business Confidence (Mar) | -19.0 | – | -20.0 |
| 15:00 | EUR – GfK German Consumer Confidence (Mar) | 10.8 | 10.7 | – |
| 20:30 | USD – GDP (QoQ) (Q4) | 2.5% | 2.7% | – |
| 20:30 | USD – GDP Price Index (QoQ) (Q4) | 2.3% | 2.3% | – |
| 20:30 | USD – Goods Trade Balance (Feb) | -75.26B | -74.10B | – |
| 22:00 | USD – Pending Home Sales (MoM) (Feb) | -4.7% | 2.1% | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | -2.622M | 1.200M | – |
| 22:30 | CrudeOIL – Gasoline Inventories | -1.693M | – | – |
GBPUSD
GBPUSD, H1: GBPUSD was traded higher following breaking resistance level at 1.4130. MACD histogram that shows increasing bullish momentum would suggest the pair to extend its gains towards the resistance level at 1.4200.
Resistance level: 1.4200, 1.4250
Support level: 1.4130, 1.4100
EURUSD
EURUSD, H1: EURUSD was traded higher following rebound from support level at 1.2380. MACD signal line that portrays a golden-cross would suggest the pair to extend higher if breakout at the resistance level at 1.2420 is successful.
Resistance level: 1.2420, 1.2460
Support level: 1.2380, 1.2350
USDJPY
USDJPY, H1: USDJPY was traded higher following gaining its support at 105.30. MACD histogram that portrays diminishing bearish momentum would suggest the pair to extend its gains towards the resistance by 200-MA line.
Resistance level: 105.80, 106.10
Support level: 105.30, 104.90
CrudeOIL
CrudeOIL, H1: Crude oil price was traded higher after rebound from support level at 64.60. MACD histogram that shows diminishing bearish momentum would suggest the commodity price to undergo short-term technical correction to trade higher towards the resistance level at 65.25.
Resistance level: 65.25, 66.25
Support level: 64.60, 64.10
GOLD
GOLD_, H1: Gold price was traded higher after rebound from support level at 1342.80. Golden-cross as displayed by MACD signal line would suggest the safe-haven asset price to extend its gains towards the resistance level at 1350.20.
Resistance level: 1350.20, 1354.90
Support level: 1342.80, 1338.10