Here are the latest market charts and analysis for today. Check them out and know what’s happening in the market today.
The British pound faces a downside this August against the Canadian dollar. The trading pair’s slip up comes after the strong surge of power from bullish investors in the latter half of July. Prices are on track to go down to its support level this month, disrupting the 50-day moving average’s recovery momentum and forcing its lower against the 200-day moving average. The weaker than projected results produced by the United Kingdom’s manufacturing PMI helped bearish investors to drag prices even lower. Although it may have only been a slight miss, it was enough to fuel the strength of bears. And as for the Canadian dollar, it’s patiently waiting for further support from the employment change, unemployment rate, and Ivey PMI reports due later this week. The Canadian labor force is looking to add more jobs to ease the massive jobless curb and the unemployment rate is projected to go down from approximately 12.3% to around 11.0%.
The decision of the Reserve Bank of Australia to hold their interest rates unchanged at 0.25% has caused the Australian dollar to slightly strengthen against the British pound. It’s believed that the trading pair will see a slight downside in the coming days thanks to the RBA’s decision. That should allow bears to hold on to the momentum by keeping the 50-day moving average lower against the 200-day moving average. Moreover, it’s expected that the reserve bank would most likely stay on the sidelines and hold off any further cuts as they wait for the initial impact of the first interest rate cuts. This is despite several states struggling with the new outbreaks of coronavirus there. According to some economists, if the Reserve Bank of Australia cuts its rates again without fully understanding the crisis, it could do more harm to the economy than good. Experts are advising not to do so until the situation gets even grimmer.
Mixed results from New Zealand’s economy has forced the New Zealand dollar to steady. The exchange rate is projected to face a downside but as of writing, bears are still waiting for further power. The GBPNZD’s prices are on track to go down to its support level as the sterling momentarily losses steam. The drop should ultimately help the bearish market by maintaining the 50-day moving average lower against the 200-day moving average. Just recently, it was reported that New Zealand’s employment change contracted less bad than expected. Official reports say that the country’s second quarter employment went down from 0.7% to -0.4%, better than earlier estimates of around -2.0%. And to top that off, the country’s unemployment rate for the second quarter also went down from 4.2% to around 4.0%, beating experts’ expectations of an increase to 5.8%. The better-than-expected unemployment rate should fuel the kiwi this week.
Despite attempts from bullish investors to prop up prices, the US dollar to Danish krone trading pair is still expected to crash to its support level. The Danish krone’s strength is mainly dependent or tied with the strength of the euro. And now, the single currency is thriving in the global foreign exchange market. Meaning, the krone should also continue rallying against the US dollar, pushing the 50-day moving average even slower against the Danish krone. As for the US dollar, it continues to trade lower, not just against the Danish krone, but also against a number of assets in the market. Bears are looking for further weakness for the greenback and now analysts are warning that the currency could be undermined by an ebbing of safe-haven flows. Aside from that, the dramatic reduction in America’s rate advantage and the continuous political uncertainty ahead of the November elections are affecting the confidence of bullish investors.