Here are the latest market charts and analysis for today. Check them out and know what’s happening in the market today.
The Paris-based Organisation for Economic Co-operation and Development (OECD) group is anticipating a robust growth for the Australian economy in fiscal 2021. The forecast is a 4.5% expansion, which is up from the 3.3% initial projection back in December. Meanwhile, GDP will continue to advance in the following year with 3.1%. The 37-member group said that the success of the country against COVID-19 and the lifting of several restrictions were the reasons for the revised forecast. The 4.5% expectation dwarfed Australia’s recovery from the 2008 global recession after posting 3.9% GDP increase in 2012. OECD is also bullish with the global economy. The group predicted the world economy to advance by 5.6% this year and slowdown in 2022 at 4.0%. The AUDCAD pair managed to bounce back from a key support line. 200 MA also provides a possible support at 0.95876. Meanwhile, the MACD indicator will recover in coming sessions.
The Swiss franc loses against the US dollar as a safe-haven for investors as the rising yield curve in America sparked the recovery of the greenback. In addition to this, the threats of rising inflation due to the expected signing of the 1.9 trillion stimulus package by President Joe Biden before the March 14 date is sending high growth stocks lower. The Swiss economy is also expected to perform well in the coming months after lifting COVID-19 quarantine list with Spain and Portugal. In addition to this, Switzerland will receive 1 million vaccine shots from Pfizer and Moderna this March. This will lead to a faster reopening of the economy. On Tuesday, March 09, the government announced that it plans to increase its purchase of vaccines from Pfizer-BioNTech from 3 million doses to 6 million doses. Prior to this, Switzerland has approved free coronavirus testing to more than 8.7 million citizens. MACD will defy bearish crossover forecast and extend its bull run.
The British pound will become a haven for UK investors after Finance Minister Rishi Sunak unveiled his proposal for the government budget. Sunak plans to increase corporate tax from 19% to 25% in 2023, the first time since 1974. In addition to this, Britain will slash its government spending by 4 billion pounds per year. These efforts will give the United Kingdom an additional 65 billion pounds in savings, which will then be used to compensate for the amount spent during the pandemic. The finance minister defended the decision by saying that it will be irresponsible for the government to have the country’s debt unchecked due to massive borrowing in 2020. Former UK FM George Osborne hit the proposal and claimed that it was “unenterprising” or not favorable to businesses. In reverse, Osborne’s action during the global recession was to tax cuts instead. Prices will continue to soar despite the MACD indicator trading in the overbought region.
Japan had impressive data from Tuesday’s machine tools order. Figure came in at 36.7%, which represents a 3-year high. However, the recent report from Fitch Ratings is expected to send the Japanese market lower. The credit rating agency has downgraded the world’s third-largest economy to an “a” with a negative outlook from the prior stable outlook. Fitch cited the possible resurgence of COVID-19 in the country as cases stabilized and stopped from going lower. In addition to this, vaccine delivery has been delayed, adding pessimism to the Japanese economy. The banking industry will be hit the most from the delayed vaccine rollout coupled with the negative interest rate of 0.10% by the Bank of Japan. The MACD line and Signal line will continue to move higher after the MAs failed to form a bearish crossover at the start of the month. Meanwhile, the 50-bar and 200-bar moving averages will continue to support the CADJPY’s rally.