Here are the latest market charts and analysis for today. Check them out and know what’s happening in the market today.
The better than anticipated results reported yesterday such as the consumer price index helped sealed the bullish AUDUSD pair. That means that the greenback will remain on the defending side as bullish investors look to recover their losses from last month’s plunge. Looking at the chart, it appears that the Australian dollar’s strength has not faltered for several sessions and has consecutively gained against the US dollar. Bears may be in trouble as the 50-day moving average appears to be taking a big U-turn and is looking to overtake the 200-day moving average which is currently trading significantly higher. Moreover, the Australian consumer price index for the first quarter of the year came in at 0.3%, a drop from its previous reading of 0.7%, but still better than the projected 0.2%. Meanwhile, as for the beloved buck, it buckles against the Aussie in today’s trading thanks to recovering risk appetite for other assets.
Thanks to the extremely critical condition of crude prices in the commodity market, the Canadian dollar remains on its back foot against the Australian dollar. The AUDCAD’s strong upswing is expected to propel it higher towards its resistance. The pair is expected to reach the resistance area by the first week of May as the Australian dollar successfully recovers its loss from March’s crash. Looking at the chart, the pair is still bearish considering that the 50-day moving average has not yet overtaken the 200-day moving average. It appears that the Canadian dollar failed to overpower the Canadian dollar yesterday despite its broad strength in the forex market. Part of the strength of the loonie came from the US dollar selloff overnight which can be attributed to portfolio rebalancing flows. However, the recovered risk sentiment in the global market reinforced the Australian dollar, preventing the Canadian dollar from securing any gains.
The Swiss franc’s safe-haven appeal doesn’t work on the Australian dollar as the risk sentiment bounces back. The reason for that is the gradual reopening plans of major economies across the globe amidst the ongoing battle against the coronavirus pandemic. The pair is widely projected to peak to its resistance area by the first half of the month as bullish investors step on their gas pedals to propel the pair higher. Fortunately for the Australian dollar, the positive results recorded from its economic activity yesterday is helping it in the foreign exchange market today. The Australian Bureau of Statistics recently reported a drop from 0.7% to 0.3% in the country’s consumer price index, better than the projected 0.2% prior. Official figures shown yesterday suggests that the Australian economy remains resilient despite the massive blows it has taken just this 2020. It also helped boost the confidence of bullish investors of the AUDCHF pair.
Thanks to the promise of the UK Prime Minister Boris Johnson, the British pound is expected to surge against the Japanese yen in the coming sessions. Investors are looking for further guidance as the recovered UK head starts planning the blueprints on how the United Kingdom will escape the lockdown to restart the economy amidst the pandemic. Despite that, Johnson also warned against the possible consequences if the United Kingdom prematurely lifts the lockdown restrictions. The outlook of the British pound is becoming more bullish despite its performance in the recent sessions. The pair is expected to climb in the coming sessions which will allow the 50-day moving average to finally recover against the 200-day moving average. Meanwhile, as for the Japanese yen, it’s also expected to put on a tough fight against the pound sterling thanks to the negativity around its economy which will reinforce its safe-haven appeal.