Daily Market Charts and Analysis February 25, 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.

USDCNH

The pair has recently traded in the red after rising to December highs above the 50-day and 200-day moving averages. The yuan has been gaining some traction against the US dollar on various news. Tuesday is seeing the dollar’s rally being turned into a pause as investors stacked up bets the growing fallout from the coronavirus outbreak would pave the way for US interest rate cuts. World markets are currently spiralling amid the rapid infection spread outside of China. Meanwhile, the World Health Organization said the Covid-19 isn’t a pandemic yet. However, it also confirmed the virus has the potential to be such. Supply chains around the world are disrupted as China locked down to fight the virus’ spread. Stocks have also tumbled while bonds have risen. At this point, virtually all expectations of a rate hike from the US Federal Reserve have disappeared. The Fed funds futures are now pricing a rate cut by June.

Charts

USDTRY

The dollar continues to rally against the Turkish lira, with the price far above the 50-day moving average, with no indication the rally will lose steam anytime soon. Investors were anxious over the conflict in neighboring Syria, amplified by the worldwide safe haven chasing amid the coronavirus spread. The Turkish lira has declined more than 3% this year on top of the lost 36% over the last two years in a slide sparked by a currency crisis in 2018. On the virus front, there has been a large spike in Italian cases, and this has particularly shaken investors on concerns about the capability of the virus to spread deeper into Europe and cause economic disruption in there. Turkey has shuttered its border with Iran and closed incoming flights as a precaution to stop the spread of the Covid-19 virus. Iran said 12 people have died and as many as 61 people have been infected by the virus. Meanwhile, Turkey has also sent thousands of troops stationed for battle in Idlib, Syria.

Charts

EURNZD

With the 200-day moving average still treading higher than the 50-day moving average, the sentiment for this pair remains largely bearish. Still, the euro has recently traded higher than the 200-day MA, indicating some bullish build-up for the common currency. For this pair, the coronavirus concerns and their hit to the global economy are still the primary drivers. Although the full impact of numerous shutdowns as precaution to the spread of the virus remains to be seen, economists believe New Zealand’s economy is well positioned to withstand a short-term decline in Chinese economic activity. It is largely agreed upon that the longer the virus persists, the more damaging the economic impact becomes. Meanwhile, the euro’s gains against the kiwi appears capped as the eurozone currency is also hit by the coronavirus outbreak. New Zealand currency underperforms major currencies, fighting with the Norwegian krone as the weakest.

Charts

AUDNZD

The pair trades within tight ranges, with the sentiment largely bearish for the Australian dollar as it struggles to come back to recent highs after the slipping quickly at the beginning of 2020. The Australian dollar just recovered from its recent record weakness. The Australian dollar serves as a liquid proxy for risk. So far this month, it has shed more than 1% of its value on top of the 4.7% decline in January. Similar with other major currencies, the main driver of this currency is the fast-spreading coronavirus outbreak and the concerns that come with it. Despite the relative slowdown in reports of new infection cases, experts still describe the situation as fluid, meaning price action will remain largely dependent on news flow. The coronavirus death toll has climbed to seven in Italy just this Monday. Several Middle East countries have also been dealing with their first infections, fanning the worries the virus could quickly turn into a pandemic.

 

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