Daily Market Charts and Analysis November 04, 2020

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

NZDUSD

No matter who wins the presidential elections today, it looks like the American dollar can only go low. As results remain uncertain, the market is expected to keep its focus on whether or not Federal Reserve Chairman Jerome Powell will be able to keep his place until the upcoming president is going to let him keep his place by next year. Now that its record-low interest rates are bound to stay, the greenback will more likely fall until Powell finishes his own term. The pair’s 50-day moving average, which has been moving steadily above its 200-day moving average, indicates that the pair is at least expected to keep a steady pace in the near-term with a more bearish bias. This is considering that New Zealand’s Covid-19 recovery plan has been helping its unemployment rate fall faster than initially expected. In fact, instead of the 9.8% figure projected by the Treasury and the pre-election expectation of 6.4%, the figure had fallen to 5.3% in the quarter ending September.

AUDJPY

In the three months ending September, Japan’s real gross domestic product is believed to have risen at an annual rate of 18.4 percent in comparison to its previous quarter. Estimates claim that the Japanese economy would have expanded at its fastest pace in history. In the previous quarter, its government reported an increase to 484 trillion yen, which was down by 41 trillion in quarterly comparison. Current projections claim that GDP had rebounded by about 20 trillion yen, which was half of the losses seen from April to June. The pair’s 50-day moving average is arching towards its 200-day moving average, indicating that the bears are preparing to bring back the pair to a slow decline towards levels last seen around May. Japan’s improvement is likely to keep risk aversion in the market as Australia’s counterpart continues to suffer over the economic effects of its neglect towards climate change and global warming amid the pandemic.

AUDUSD

Climate change has proven itself as an economic catastrophe once again. Australia is under fire for mishandling the threat of climate change. Australian economic analysts claim that the pressing impact of global warming on the region is going to pull its growth of around 3 percent per year and inevitably decrease 880,000 jobs around the same period. Economists believe that GDP could fall by 6% around 2070, which currently sits around an AU$3.4 trillion loss in present value terms. The hardest-hit industries will include trade and tourism, which is already one of its biggest sources of income already. Manufacturing sectors would lose AU$300 billion in activity while mining could lose about AU$350 billion in total. The Australian economy is suffering as it is – markets are bracing for what the country plans to do amid a crucial time. Although the pair’s 50-day moving average is above its 200-day moving average, the pair will still fall near-term.

AUDCAD

Despite having an unpredictable American counterpart, economists are commending Canada’s leader for his resilience in trade relations with its international partners. The last eight months of the pandemic had suppressed businesses in Canada even way before the pandemic, but trades in key borders such as those across Windsor to Detroit, which had come back near normal levels once again. Five of eleven export sectors have recovered and then some since the end of the summer, and markets claim this could continue through the end of the year regardless of whoever wins the US presidential elections. The pair’s 50-day moving average is beginning to lower even lower toward its 200-day moving average, showing signs that traders are preparing for a relatively bearish market for the pair despite having the bulls in the defense. Down under, the Australian economy will keep feeling the pressure for its lack of response towards climate change.