Here are the latest market charts and analysis for today. Check them out and know what’s happening in the market today.
Chinese economic data has been critical in the AUDCHF’s direction because of China’s trade link to Australia. However, looking at it, the Australian dollar remains generally stronger against the Swiss franc. In fact, the pair is currently trading around a critical level and when it breaks past it, it should rally towards its resistance level, reaching ranges last seen in November 2019. That move should push the 50-day moving average past against the 200-day moving average, signaling that the momentum is theirs finally. As of writing, the Australian dollar is held back by the second tranche of economic packages named $750. Australian Treasurer Josh Frydenberg said that the second $750 economic support payment is meant to inject around $3.8 billion into the Australian economy. According to Frydenberg, the package will provide an economic lifeline to numerous citizens during the difficult times brought by the coronavirus pandemic.
Bears are praying for support from Canada’s economic activity as the Australian dollar continues to dominate its direction. However, bearish investors would need significantly strong results from the Canadian consumer price index scheduled later this week to prevent the Aussie from climbing even higher. But in the meantime, the Australian dollar to Canadian dollar exchange rate is looking pretty bullish in the trading sessions. That should help bullish investors to propel the 50-day moving average, leaving the 200-day moving average in the dust. On Wednesday, the Canadian core consumer price index for June is due to be released. And also, on that day, the Bank of Canada is scheduled to release its rate statement and hold a press conference along with the official interest rate decision. Investors are hoping that the Bank of Canada won’t unleash an unexpected interest rate cut that would cause the Canadian dollar to buckle even further against the Australian dollar.
The Japanese yen is expected to advance against the Canadian dollar in the trading sessions as the risk aversion once again strengthens. The Canadian dollar to Japanese yen exchange rate should go down in the coming sessions, hitting its support levels by the latter part of the moment. That should help bearish investors maintain the momentum as that should push the 50-day moving average lower against the 200-day moving average. Meanwhile, the demand for safe haven currencies such s the Japanese yen is strong despite the news and updates about a possible coronavirus vaccine from various biopharmaceutical companies. This because other countries around the world continue to see record numbers of new confirmed cases, particularly the United States. The increasing concerns for the outlook of the global economy are also prompting traders to seek safety towards the risk assets and the demand for such mainly strengthened last week.
The British pound is looking to extend its gains against the Japanese yen. In fact, the pound’s strength is greater than of the Japanese yen and is moving against the massive demand for safety currencies. The pair is widely projected to continue climbing up towards its resistance level in the coming sessions, hitting ranges last seen in early June. That move should help bullish investors buoy the 50-day moving average towards the dominant 200-day moving average. The main reason why the sterling is powerful is Brexit related news. And just recently, it was reported the UK-EU divorce deal negotiations are heading to Brussels where top negotiators are expected to offer positive developments that would help the pound sterling hold on to its gains. Looking at the Pound’s rally, it has been rather successful this July thanks to Brexit deal hopes. Also, investors are waiting for further guidance from the Bank of England Gov Bailey’s speech due later today.