Market News and Charts for August 17, 2020
Hey traders! Below are the latest forex chart updates for Monday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
The Australian dollar to Canadian dollar exchange rate steadies this Monday as both sides face difficulties in trying to push the tides in their favors. Prices remain bullish despite the stalemate today and it’s expected that it would go higher towards its resistance level. The trading pair expected to climb to ranges last seen in December 2018 as the Canadian dollar continues to slide thanks to the concerns in the crude market. Perhaps the reason why the Australian dollar is slowing down this Monday is the new record of coronavirus deaths in the antipodean nation. Australia has just seen its deadliest day in since the outbreak starting, recording about 25 deaths in 1 day. Health officials say that there are 290 new confirmed cases, putting the total number of infections in the country at around 23,539. The death toll for the virus has also climbed to about 421. Health Minister Greg Hunt announced additional funding to help contain the virus.
The Swiss franc takes advantage of the heightening concerns of investors and manages to prevent the Australian dollar from climbing up further. The pair’s prices are now expected to turn slightly bearish as the safe-haven appeal of the franc attracts more worried investors. Another factor that causes the Australian dollar to slide and the Swiss franc to shine is the escalating geopolitical tension between Washington and Beijing. The two sides have been going on amidst the pandemic and economists believe that it would slow down the recovery of the global economy and de-globalization. In January, both economic powerhouses have already agreed to ease their sanctions on imported goods. However, as US President Donald Trump continues to pressure Chinese applications like TikTok and WeChat, the relationship between the two has gotten increasingly strained. In fact, Trump could even ban the two tech giants over national security concerns.
Brexit-deal hopes continue to keep the British pound to Japanese yen exchange rate in bullish territories. Although as of today, prices aren’t moving in favor of bulls, it’s projected that it will ultimately turn into their favor. Just recently, it was reported that British Prime Minister Boris Johnson’s negotiation team vowed to stand firm in the latest round of trade talks which is scheduled to resume tomorrow in Brussels. According to local news, a source close to the matter said that the UK’s team will not accept any of the deal’s “constrains” to the European Union’s rules and infringes sovereignty. Perhaps this news is the reason why the pair is steady because it could also be concerning that its stalemate won’t budge yet. However, the mere fact that negotiations are about to restart keeps it holding on. As for the Japanese yen, US-China trade war woes are preventing it from regaining its footing against the British pound.
As the exchange rate hits its resistance level, prices are projected to bounce off and head downwards to its support level. The main cause of the CADJPY’s downfall is the volatile conditions of the global crude oil market. Another factor that’s holding up the Canadian dollar is the new wave of coronavirus infections in the country. Reports say that Canada is now preparing a plan for a worst-case scenario in the country in which the number of new coronavirus cases could swamp the public health care system. The government is working to prevent that from happening as it could send the death toll in the country soaring high. On the other hand, the Japanese yen is also held back by the fact that the tensions between Beijing and Washington are escalating. According to most experts, the trade war between the two nations could cause the Japanese economy to suffer even further as it will lead to de-globalization.
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