Daily Market Charts and Analysis February 17, 2020

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Market Charts and Analysis

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

USDCAD

The Canadian dollar recently climbed to record highs, now with the price hitting the 200-day moving average as the US dollar appears to lose momentum. The main reason for the rally is the rise in the price of oil, which is one of Canada’s main exports. As for oil price hike, the reason lies in the hopes that the coronavirus outbreak would not cause any long-lasting economic damage, as many in the markets keep worrying. US crude future gained 1.6% at $52.25 per barrel last week. Recent data suggested Canadian home sales slipped 2.9% in January from the month prior but were up 11.5%, not seasonally adjusted, when compared to the same month last year. Also, last week, the Canadian National Railway Co, which is the country’s biggest railway operator, said it would halt operations in Eastern Canada as anti-pipeline protesters block the rail lines. Meanwhile, government bond yields were lower across a flatter yield curve.

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NZDUSD

The pair us trading in the red today, with the dollar gaining against the New Zealand dollar, taking the price below the 200-day moving average. The pair’s movement is still driven by the coronavirus outbreak in China, where the confirmed infected hit nearly 70,000. The Hubei province confirmed another 1,933 new cases of coronavirus and 100 new deaths. Still, there is a sense in the market that the virus can be contained, and this has led to an increase risk appetite that supported the commodity complex. But even if the dollar is moving up, its gains can still be capped after Friday data for the December industrial production that came below expectations. It also came with the disappointing details within the retail sales data. At the Atlanta Federal Reserve also lowered its GDPNow estimate of Q1 GDP growth from 2.73% to 2.35%. Still, the dollar could get some support from sentiment that US President Donald Trump would win this year’s election.

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AUDJPY

The pair is trading in the green, with the Japanese yen losing some of its shimmer against the Aussie as traders somehow adopt a decent risk-on sentiment. Investors are still keeping close tabs on the coronavirus as global growth outlooks look to be reshaped in the short to medium term. The improved sentiment can be attributed to the news of a reduction in the reported outbreaks over the weekend. Commodity-based currencies, such as the Australian dollar, benefitted from this. For fundamentals, the week will be packed with macroeconomic data. On Tuesday, the Monetary Policy Meeting Minutes will be released, followed by the Wage Price Index and Employment figures in the mid-week. Meanwhile, Japan’s economy flashed a negative signal even if the figures are for the time before the Chinese coronavirus outbreak that is probably going to have negative impacts to the global economic growth.

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AUDUSD

The pair is trading now in the green after slumping steeply in the previous sessions. Last week, the Australian dollar was pressured by coronavirus jitters, with the virus still not totally under control and many believing it would take its toll on Chinese economic growth. Today, however, the buying interest has improved around the Aussie. The pair will also be trading in ranges over the coming days ahead of the release of the RBA’s monetary policy. The transcript for 2020’s first meeting is expected to highlight a wait-and-see approach as the “central scenario is for the Australian economy to grow by around 2 ¾% this year and 3% next year.” Also, the Australian central bank might attempt to buy more time at its next meeting on March 3 amid the “signs that the slowdown in global growth that started in 2018 is coming to an end.” The AUDUSD pair might still be afloat as the central bank tames speculation for lower interest rates.

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