Daily Market Charts and Analysis August 27, 2019

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

AUDNZD

The pair is creeping up the daily charts and trading near a resistance line close to monthly highs. The pair has apparently broken free from its downtrend during the previous month. The Australian dollar previously weakened after the intense escalation in the trade war, being the proxy currency for the Chinese yuan. Afterwards, it regained its strength when Beijing hinted that it didn’t want to let the yuan weaken further. Meanwhile, the New Zealand dollar was also caught in the trade tensions, whipsawing as latest developments from the two warring sides came in. Markets then steadied after US President Donald Trump signaled that a trade deal with China was still possible after positive actions from Beijing. Trump has recently claimed that Chinese officials have reached out to US negotiators to continue talks. Investors are wagering more cuts coming from both the Reserve Bank of Australia and the Reserve Bank of New Zealand.

EURBRL

The pair recently got out of a cup-and-handle trend. After initially whipsawing, the price appears to be pursuing an uptrend, with the 50-day moving average looking ready to break above the 200-day moving average to confirm a golden cross. Over in Europe, Germany still looks like it’s on the verge of recession, possibly taking the whole eurozone for a rocky ride. This further fueled expectations of monetary stimulus from the European Central Bank and ECB President Mario Draghi. Meanwhile, the Brazilian real has slumped to record lows as Latin American currencies fell, along with stocks, amid the escalating tensions between the US and China. The Brazilian currency also suffers from pressures from the sluggish economic outlook in the country. According to data, Brazil’s balance of payments position declined sharply in July, with the current account deficit unexpectedly swelling to $9 billion.

USDRON

The pair still remains within its established channel, trading mainly with an upward bias as the dollar fluctuates against the Romanian leu mainly driven by news over the ongoing US-China trade tensions. The 50-day moving average still stays above the 200-day counterpart, indicating continuing bearishness for the dollar in the near-to-medium term. The pair is now attempting to break an upward resistance line near the most recent trading price close. The dollar retained its strength after some signs of progress between Washington and Beijing. Meanwhile, the Romanian leu still suffers from decades of foreign debt and exchange rates. The stock of private lending increased 7.9% year-on-year to RON 263 billion at the end of July. That’s a bit of a speedup from 7.1% during the previous month according to the Romanian central bank. Overall, the pair will continue going up the charts as further resistances become supports.

EURNOK

The pair continued its upward trajectory during the previous months, reaching the upper band of the trend channel as the Norwegian krone slumped amid falling oil prices. The pair is currently fluctuating, with the euro and Norwegian krone both affected by dim economic outlook over in the broader Europe. The Norwegian krone will probably weaken further, according to forecasts from one of the country’s biggest banks. It’s still unclear why the Norwegian currency remains weak in spite of the country’s low unemployment and the resilient economy. Oil prices were primarily to blame, but the currency has been more valuable when oil was way down at $30 per barrel. Apart from that, it’s possible that the weak global economic outlook and the uncertainty in trade relations also dampen the appetite for the Norwegian krone. On the flipside, the weaker krone still boosts the country’s imports and tourism.