Here are the latest market charts and analysis for today. Check them out and know what’s happening in the market today.
The reports about Canada’s growing government deficit this week has caused the Canadian dollar to slow down significantly against the US dollar. Bullish investors saw an opening following that news and now the pair is on track to reach its resistance level in the coming sessions. The sudden shift in the market’s mood has also helped bullish investors dominate Friday’s trading sessions. See, risk aversion has once again been revived and this means that risk currencies such as the Canadian dollar are back on the defensive. If the pair continues to climb higher, bulls would be able to prevent the 50-day moving average from plummeting towards the 200-day moving average, keeping the momentum to their end. Investors are now closely waiting for further guidance that should help seal the pair’s trajectory. Later today, Canada’s employment change is scheduled to be released and for the Canadian dollar to regain some confidence, it needs exemptional results.
As of writing, the Australian dollar to US dollar exchange rate is seen easing as Australia sees more new coronavirus cases. The US dollar appears to have dominance this Friday over the direction of the pair. However, the tides are still widely expected to turn in favor of bulls and the pair remains on track to reach level last seen in early 2019. Looking at the charts, the bears are clearly struggling to break the resistance-turned-support level, and this suggests that the US dollar does not have enough strength to pull the Australian dollar. Another factor that’s causing the Aussie to weaken this Friday is the risk aversion in the global market. Just recently, Australia announced that it will be cutting citizens returning to the country by half as its struggles to contain the resurgence of new confirmed infections. Starting next week, the country will only allow 4,000 citizens to return to the country each day, down from the current limit of 8,000 per day.
The New Zealand dollar slowly eases against the US dollar this Friday, ending the week on a rough note. Looking at the charts, it’s evident that the pair is having trouble breaking past its current levels. However, the momentum is still expected to return to bullish investors and the pair is projected to climb towards its resistance reaching levels last seen on the very first session of the year. Once the pair hits that resistance, bulls would be able to buoy the 50-day moving average higher against the 200-day moving average, signaling a bullish market. But in the meantime, the pair is seen neutral as the risk aversion weighs on the New Zealand dollar. On top of that, the antipodean currency is also hampered by the stalled performance of the US equities market. Bulls are still heavily relying on fundamentals rather than economic data because there aren’t any scheduled reports due anytime soon. The next crucial kiwi data is the CPI data due next week.
The Japanese yen regains its footing against the Australian dollar and is now poised to take the pair down towards its support level. Bearish investors are looking to redeem their losses and once attain the dominance over the pair. That more should then force the 50-day moving average lower against the 200-day moving average. The rising number of new confirmed cases around the world, mainly in the United States, is supporting safe-haven assets like the Japanese yen. And due to the renewed demand for safety currencies, risk-sensitive assets such as the Australian dollar are losing their steam. Aside from the United States some countries in the Asia Pacific region are continuing to see an increase of coronavirus cases. Not to mention that Australia is also seeing a concerning surge in coronavirus cases. Earlier today, it was reported that Australia’s coronavirus hotspot, Victoria, recorded 288 new confirmed cases, the largest number recorded by the state yet.