Daily Market Charts and Analysis November 06, 2020


Here are the latest market charts and analysis for today. Check them out and know what’s happening in the market today.


Heightening trade risks between Australia and China have been leading uncertainty for the Aussie dollar, now that Australia’s economy is on track to struggle even through the next year. Trade Minister Simon Birmingham claims that the Chinese government was engaging in psychological warfare by flagging vaguely defined potential sanctions, which raised worries that Australia might lose access to the Chinese market altogether. The threat of trade actions came before the third China International Import Expo, which will be held in Shanghai within the month. The pair’s 50-day moving average recently touched its current levels, which could mean that the pair is preparing for a breakthrough. A bullish market is more likely for the euro currency over risk aversion amid the queue for the US presidential elections and the hope that the bloc will rebound in 2021 from its unprecedented coronavirus recession seen throughout the year.



Employment figures are on their way today. Nonfarm payrolls in the United States are expected to have fallen in October, alongside their Private equivalents. Despite seeing a decline in its unemployment rate for the same month, investors for the US dollar are less likely to take the risk for its economy. As the US elections continue to drag on the market, the greenback is projected to fall over the euro in the near-term. In fact, the pair’s 50-day moving average is still above its 200-day moving average, and recent trades show that the pair will be meeting a volatile bullish market within the year as the bloc prepares to begin its full recovery in 2021 from its coronavirus recession this year. The 10 countries sharing the euro currency are projected to meet growth to 3.0 percent within two years after the unexpected contraction. If Covid-19 restrictions remain, the eurozone economy would ease more gradually within the next year.



Food and drink producers in Japan are projected to greatly benefit from improved trade deals with the United Kingdom. The UK-Japan Comprehensive Economic Partnership Agreement is projected to secure lower tariffs on agricultural products such as pork, beef, and salmon. British products will also be enhanced within the next years. Total trade in agri-food products would then grow more than 14.5 percent per year, which was the pace between 2017 and 2019. More European firms entering the Japanese market are also likely to stimulate engagement towards the Japanese yen in the near-term as the USDJPY exchange’s 50-day moving average remains far below its 200-day moving average. The US election will also create hesitance for the greenback in the near-term, especially while the Democratic candidate Joe Biden is still in the lead, pushing investors toward Asian assets as the continent continues its recovery from the pandemic.



Prime Minister Jacinda Ardern announced the outline for top economic priorities for the next two months of 2020. Job creation and exports will be the main focus through December. She now seeks to extend the Small Business Loan Scheme before Christmas with its interest-free period, both by three years to invest in new equipment and digital infrastructure. These businesses will then have more opportunities to raise wages in the holiday period where income would typically drop off. New Zealand is experiencing relatively strong employment numbers against bigger economies such as Australia, the US, and most notably: Canada. The pair’s 50-day moving average is projected to continue its sharp incline upward as it remains above its 200-day moving average as the kiwi government invests an additional NZS$311 million into its program to increase subsidy pays to employers, bringing 40,000 unemployed people back to work.


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