Hey traders! Below are the latest forex chart updates for Tuesday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
USD/CAD
The pair will continue to move lower in the following days towards an uptrend channel resistance line. The United States came under pressure from the comments made by JPMorgan Chase and former Fed Governor Janet Yellen. The American multinational bank said the country’s GDP for the second quarter of 2020 could plunge by 33.5%. If the forecast is true, this would be the largest quarterly drop in the American history. In addition, Janet Yellen also sees the American economy shrinking by 30%. She further added that unemployment in the United States would increase by 13%. Most analysts also expect the county to enter a recession in the coming quarters. This was despite the efforts led by the US government. President Donald Trump and House Speaker Nancy Pelosi approved the $2 trillion stimulus package. According to analysts, however, not shutting businesses will only lead to more losses in the American economy.
NZD/USD
The pair will break out from its current resistance line, sending the pair higher towards a “Falling Wedge” pattern resistance line. New Zealand published mixed results for Business Confidence and Capacity Utilization reports yesterday, April 06. Business confidence in the country dropped a staggering 70% from the -21% previously recorded. Despite this, New Zealand’s capacity utilization defied expectations and posted 92.1%, slightly above the previous record of 92.0%. Analysts are now waiting for Wellington to publish reports for the Global Dairy Trade Price Index. Forecasts suggest that movement will be stable, thus helping the New Zealand dollar to trade higher against the USD in coming sessions. On the other hand, comments from JPMorgan Chase and Janet Yellen that the US economy might drop by more than 30% is weighing down on greenback. Yellen was the former Federal Reserve Chairman.
AUD/JPY
The pair will continue its 2-day rally in coming sessions towards a downtrend channel’s resistance line. Major economies around the world are now introducing fiscal and monetary policies to help their economy recover from the coronavirus. The United States has the largest stimulus package with $2 trillion. This was followed by the European Union’s economic powerhouse, Germany, at €1 trillion. Meanwhile, Japan unveiled the country’s largest stimulus in history at $555 billion. On the other hand, Australia’s government had its largest stimulus spending at $126 billion, dwarfing its spending during the 2008 Global Financial Crisis. Between the Japanese yen and the Australian dollar, the AUD will thrive in the market. This was after Japanese Prime Minister Shinzo Abe declared a “State of Emergency” in the country. Abe came under scrutiny in the past few weeks following his failure to activate emergency measures.
AUD/USD
The pair will continue to move higher in the following days towards a downtrend channel support line. The US dollar is under pressure from yesterday’s performance of the Dow Jones Industrial Average (DJIA). The US index went 7% up, attracting investors and traders recently invested in the US dollar. Analysts further see the American economy outperforming other economies in the coming days. Investors are still trying to weigh down the economic value that the $2 trillion stimulus package will contribute to the US. Australia also unveiled its largest stimulus package to date that completely dwarfed its spending during the 2008 global financial crisis. The $126 billion package will be distributed directly to businesses and industries directly affected by the coronavirus pandemic. Despite the US having the largest stimulus package among countries under the same situation, analysts predict the US to introduce more measures in the coming weeks.
