Daily Market Charts and Analysis July 22, 2019

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

AUDJPY

The pair is trading near a strong support line after trading higher than the 50-day moving average on the daily chart. The overall trend appears to be going back to the bullish side, but long term indications suggest that the pair will face insistent pressure over the longer haul. The Australian dollar had reached multi-month highs last week as market speculations on aggressive US rate cuts heightened after the dovish comments from Federal Reserve policy makers. New York Fed President John Williams said that “it pays to act quickly to lower rates at the first sign of economics distress.” The markets took this as a solid indication of a rate cut at the Fed’s July 30 to 31 meeting. Meanwhile, Bank of Japan Governor Haruhiko Kuroda last Friday emphasized the Japanese central bank’s independence. There have been concerns that the BOJ’s independence from politics is being eroded.

AUDUSD

The AUDUSD traded flat today after pulling back from recent gains and failing to break the 200-day moving average line. The pair is fluctuating around a solid support line and could possibly stay in range as it trades in between the 50- and 200-day moving averages. The AUD suffered weighing down from Wall Street, with the previous dovish comment by NY Fed’s Williams being denied by St. Louis’ Fed’s Bullard, who gave the greenback additional robustness after saying that the a cut of 25 basis points would be appropriate for this month. US President Donald Trump has weighed into a simmering debate over Federal Reserve interest rate policy. He said that the bank should end its “crazy” tightening moves. In his usual way, the president addressed the issue over a series of tweets toward the controversy stemming from the speech Williams delivered last week.

AUDCAD

The pair traded below the 50- and 200-day MAs, just below the 50-day MA, after it failed last week to break above the shorter term MA on the daily chart. It struggled to continue a retracement after downturn and is now trading with much pressure on the Australian dollar side. Last week, the Bank of Canada said that it was intending to become the administration of the Canadian Overnight Repo Rate Average (CORRA). CORRA is reference rate with regards to financial market transactions. Additionally, Bank of Canada Governor Stephen Poloz and his deputies issued a mostly dour assessment of the economy’s near-term prospects. They have decided to leave the benchmark interest rate unchanged at 1.75%, although they stressed that the recent economy strength is deceptive. The bank did not provide hints as to whether they will implement rate cuts soon, although the tone is regarded as more to the cut side than increase.

AUDCHF

The pair is trading tight ranges just above the 50-day moving average, which has served as a strong support in the recent trading sessions. Overall, the pair is struggling to climb back up previous highs, with the 200-day moving average far above the 50-day counterpart. This suggests a bearish trend for the longer haul. Meanwhile, the Swiss National Bank is facing some pressure “to act,” as the European Central Bank outlines its plans for monetary loosening. The capital inflows that boosted the Swiss franc indicate the slowing global economy, which has pushed investors to seek safe havens. However, the SNB already has record-low interest rates and swelling balance sheet. If the officials decide to intervene in the currency markets, something SNB President Thomas Jordan seemingly isn’t afraid to do, the bank may be to beware going against US President Donald Trump.