Daily Market Charts and Analysis October 28, 2019

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

EURJPY

The pair has broken above its down-trending trading channel previously and rose above the 50-day moving average, inching closer to the 200-day moving average. In the previous two sessions, however, it traded in the red. On the European economic front, the eurozone economy stayed close to stagnation at the start of the fourth quarter, based on the latest flash purchasing manager’s index (PMI) data. The data came in at 46.2, a two-month high but well below the 50-mark that separates contraction from expansion. Over in Japan, economists from Mizuho Research Institute said that the Japanese economy is now entering a plateau phase, with an upward momentum clashing against downward pressure. Recently, the International Monetary Fund left its forecast unchanged for the country’s economic growth at 0.9% this year. It then predicted the country’s economy will slowdown to 0.5% next year.

USDCAD

The pair has faced great downward pressure in the previous week, with the candlesticks plummeting below both the 200-day and 50-day moving averages. Now it’s attempting a reversal. Over in Canada, Prime Minister Justin Trudeau won the votes and will keep his position in the country. He will run a minority government with the Liberal Party. Meanwhile, the Bank of Canada found a slight improvement in the country’s business sentiment, coming in spite of the fears of rising global trade tensions and the threat of a US recession. The data is based on the Business Outlook Survey, which is compiled from interviews with senior management at 100 major companies. It provides some insights over how the central bank is digesting economic data. Because of the report, several economists are concluding that the Bank of Canada will not likely change its policy on key interest rates this month.

NZDUSD

The pair managed to rise in the previous sessions, with the levels rising above the 50-day moving average. However, it hit a pretty solid resistance line and plummeted back to the levels of 50-day MA. In New Zealand, falling mortgage interest rates helped stabilize inflation for the highest-spending households. On the other hand, rising council rates reached superannuitants the hardest, according to Stats NZ, the country’s statistics department. In September of this year, highest-spending households faced the lowest quarterly inflation of 0.4%, compared with the 0.7% for all households. Meanwhile, the US Federal Reserve Bank is set to meet this week, and the markets are expecting it to cut key interest rates once more. Fed policymakers appear ready to do so as they grow worried about the country’s economic outlook, with other opting to use the fear-inducing word “recession.” Fed Chairman Jerome Powell reiterated his commitment to boost the economy.

AUDJPY

The pair has failed to break above a solid resistance line. It’s now trading in the red, with the price expected to pull off a reversal soon. Over in Australia, Treasury warned that RBA interest rates are squeezing bank profit margins. That means that the RBA may have to buy bank and mortgage bonds to reduce the borrowing costs and stimulate the limping economy. This internal government advice undermines Prime Minister Scott Morrison’s argument that the big banks were unjustly “profiteering” by failing to fully pass on the recent three RBA cash rate cuts to 0.75%. Over in the Reserve Bank of Australia, Governor Philip Lowe said that it was “extraordinarily unlikely” that negative interest rates would be imposed to meet the country’s inflation and growth targets. He added that ultra-low rates alone wouldn’t be enough to stimulate investments. Lowe said that without non-monetary actions, monetary policy will become “overburdened.”