Daily Market Charts and Analysis September 16, 2020

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

EURNZD

Production figures might have fallen for some economies in the eurozone, but investors’ outlooks are still optimistic. The largest economy in the bloc saw a higher sentiment in September, according to the ZEW economic research institute in Germany, despite the stalled Brexit deal and new daily Covid-19 infections. Apparently, it had seen a jump to 77.4 from 71.5 points in August. This also pleasantly surprised forecasts of 69.8. Its strength will help its currency rise against the kiwi, in particular, because the kiwi economy is preparing to report its deepest economic contraction and its first recession in history. The pair’s 50-day moving average had just skirted above its 200-day moving average, which means that the bulls are preparing to take over again. It’s most likely that the track will continue upwards due to investors raising uncertainty over kiwi lockdown restrictions, which could further harm its economy long-term.

AUDNZD

The daily rise in infections in Melbourne, the hot spot of Australia, has eased further Wednesday. This began hopes to relax the extended lockdown in the area before October. Suppose the number continues to fall below 50. In that case, this could mean that the city could begin reopening, most especially the services that were forced to stop. This includes construction sites, manufacturing plants, warehouses, and childcare facilities to a possible total of 100,000 more jobs within two weeks’ time. The country’s second-most populous state, Victoria, has also been witnessing lesser cases than in early August. The outlooks so sweet so far, and it’s obvious that Aussie-kiwi dollar investors are willing to take advantage of it, as well. As the kiwi currency suffers from a possible recession in the second quarter, the pair’s 50-day moving average is projected to move further up from a much higher curve against its 200-day moving average.

EURBRL

It looks like even the lack of agreement for Brexit and the increasing coronavirus cases can’t stop the euro currency from increasing. Economic sentiment for Germany rose for September by much more than the market had expected. In fact, the figure reportedly witnessed an increase from the expected 71.5 figure to 77.4, which was also up against the previous month. Current conditions also pointed towards further optimism from -81.3 to -66.2 seen in August and compared to the -72 points expected by economists. The number has been rebounding since it had reopened since May, albeit slowly. The euro-real pair’s 50-day moving average has also been moving above its 200-day moving average and is expected to continue its course near-term as investors worry about the status of coronavirus cases in Brazil, which had surpassed 132,000 deaths this week. Continuing increases could cost a further fall for its currency. 

GBPBRL

Goldman Sachs economists said that if the United Kingdom fails to reach a trade deal with the European union, its cost will be much greater than its recovery from dealing with the coronavirus. But even then, the UK government has yet to increase the odds of an approved deal with the bloc by the end of the year. Although both parties are still open for negotiations, it looks like optimism is nowhere in sight: as the British pound witnesses a bearish trend, the currency is projected to break down from support levels against emerging markets such as the Brazilian real near-term. In fact, it had briefly touched the support level it needed to do it. After weeks-worth of an unsure hovering, the 50-day moving average is inching lower towards its 200-day moving average. This trend could be triggered further after the Brazilian government chose to retain its previous economic contraction forecasts at near 4 percent with hopes that its economy will jump by more than 7 percent within the next quarter, smaller than the average forecast.