Daily Market Charts and Analysis August 21, 2020

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

AUDCAD

Economists are growing increasingly worried about the slowing immigration rates in Canada, a major source of its economy and labor force growth. The federal government admitted that it relies on having large numbers of people coming to the country to fuel employment. In the second quarter, the country added 34 thousand permanent residents. It might look like a lot, but this was a whopping 67 percent decline in comparison to last year. Near-term recovery of immigration is highly unlikely, growing investors’ concern and driving the market’s money towards the Australian dollar despite growing coronavirus cases in the region. The pair’s 50-day moving average is still increasing way up to its 200-day moving average, showing that bullish investors are taking over to help the Australian dollar near-term. However, the Australian economy is prompted to suffer the consequences of its Victoria lockdowns in the longer term.

AUDCHF

According to Australian economists, this year’s total death count could cost AU$117 billion of its economy each year. Even if a vaccine is found by March of next year, forecasts predict that the shortfall in previous forecasts in population will be around 420,000 by 2030, which is going to affect its economy in a much longer period. Australia’s jobless rate blew up to 7.45% in June, and quarterly economic growth fell to -0.3% during the first quarter to its first negative quarter since 2011,  and its lowest annual fall to 1.39% since the fourth quarter in 2000. The AUDCHF pair has been trading sideways for the past few months and its 50-day moving average reached past the 200-day moving average only recently, but recent events show that it might be on track downwards once again. Mixed Swiss data will help franc investors biased for its currency as while the Aussie dollar continues to suffer from rising COVID-19 case rates.

GBPJPY

Japan’s jobless rate is still at a much lower rate than the 10.2 percent seen in the United States. But its 2.8 percent figure for June counted those who were dropping out from searching jobs, which economists claim only prevents the government to record its official rate. The underlying risk in such an implication has worried investors as it takes a toll on the Japanese yen in near trade. Investors are also growing skeptical of Japan’s “Abenomics” stimulus policies, making the market grow weary of the usually safe currency. Moreover, the sterling-yen pair’s 50-day moving average is prickling up towards the 200-day moving average, which has been climbing upwards since Japan reported a 27.8% economic decline earlier this week. Meanwhile, the UK government is in discussions to focus its next fiscal stimulus on its combat air sector, a major driver of its domestic economy. Investors expect the sterling pound to increase against the Japanese yen near-term.

CADJPY

Canada’s lack of immigration growth is leading the market into a blanketed concern about its currency. The exchange rate’s 50-day moving average shows hesitance in the bull market near-term for the Canadian dollar as its 200-day moving average continues its slow sideways slope above it. The amount of new permanent residents in Canada, which is a major driver of its economic growth, fell by 67% in an annualized record. Economists warn that the large decline might even worsen its immigration and employment issue. Canada is also experiencing a series of political conflicts driven by its prime minister Justin Trudeau and the resignation of its finance minister Bill Morneau. On the other hand, Japan is seeing a relatively low unemployment rate over other major economies worldwide. This will help its currency lift up against the loonie in comparison, even after a record decline in GDP.