Market News and Charts for April 24, 2020
Hey traders! Below are the latest forex chart updates for Thursday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
The Japanese yen forces its matchup against the Australian dollar to steady this Friday’s trading. The safe-have appeal of the beloved Japanese yen falters as the financial market clams down thanks to the recovering crude prices. Meanwhile, the rather underwhelming results from the Australian manufacturing and services PMI fails to fully drag down the Australian dollar in the forex market.
The outlook of the Australian economy remains muted thus preventing the bulls from successfully securing massive gains. The antipodean currency is currently benefiting from the newfound weakness of its rivals and the stabilizing crude market also helps its case. Moreover, more turbulence in the US jobless rate gives both the Australian dollar and Japanese yen a boost. However, it appears that Aussie will stand more prominent. The pair is bound to steadily and gradually climb to its resistance level by the first half of May.
The Australian dollar is poised to reach its resistance against the US dollar as it takes advantage of the hurdles faced by the US dollar. See, the US dollar is under pressure thanks to the newly approved wave of stimulus measures for small businesses affected by the devastating pandemic. That raises the total coronavirus spending package to almost a staggering $3 trillion. And it doesn’t end there unfortunately as the number of jobless Americans continue to surge thanks to the virus. Just recently, it was reported that over 26.4 million US citizens are have filed for the initial jobless claims report. Raising concerns of another possible round of relief that will be detrimental to the strength of the US dollar in the forex market.
Aside from that, the financial market has started to calm down. This is once again thanks to the rebounding price of crude oil in the commodity market. The relief, as a result, takes away some of the safe-haven appeal of the US dollar, making it more vulnerable.
The Canadian dollar shares the same bearish fate with the US dollar against its matchup against the Australian dollar. The pair is bound to climb to its resistance level in the coming sessions. However this time, the Australian dollar will slightly struggle as the Canadian dollar benefits from the crude market. See, the loonie’s direction is somewhat correlated to the greenback. However, the key difference between the two is their relationship with crude oil. Technically speaking, the Australian dollar is a commodity currency that’s currently benefiting from the rebound of crude oil prices.
However, it’s still widely believed that the Australian dollar will have more power against the Canadian dollar. Looking at the Canadian dollar’s rally, it’s rather unstable as it is soaring and sinking against most of its rivals. Unlike the Australian dollar which has been thriving in recent sessions. It seems the AUDCAD pair should reach its resistance by the first half of May.
The Swiss franc is in trouble against the Australian dollar. Bullish investors are steadfast to force the pair to climb to its resistance level by the first few days of May. Just recently, reports have come out that the Swiss National Bank has seen record losses all thanks to the unforgiving coronavirus pandemic. Reports say that the SNB reported a quarterly loss of about $39.34 billion, or about 38.2 billion Swiss francs.
The devastating coronavirus crisis has greatly pummeled the strength and value of the foreign currency holdings and shares of the Swiss National Bank. The news immediately strained the Swiss franc, allowing the Australian dollar to overtake it yesterday in the forex market. The pair is widely expected to climb to its resistance level by the first week of May. Aside from that, the safe-haven appeal of the Swiss franc has also started to falter. This is as the commodity market finally shows signs of steadying in the recent session following the historic plunge.
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