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Market News and Charts for August 19, 2019

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!

EUR/JPY

The pair is expected to further move lower in the following days after it broke down from a major support line. Japan’s trade deficit with the European Union enters its lowest in two (2) months to only $643.17 million. This shows the increasing cooperation between the two (2) countries following the ratification of the EU-Japan Free Trade Deal, which was the two (2) economies response to trade protectionism popularized by the United States in the 21st century. Japan’s trade deficit with its largest trading partner, China, also tumbled by 9.3% to $3.60 billion. Among its partners. Japan’s trade deficit with the United States surged by 15.6% to $5.44 billion from a year earlier, marking the fifth consecutive monthly gain. This increase in the trade deficit was amid the impending trade negotiations between the U.S. and Japan. U.S. President Donald Trump warned Japan and the EU that he will impose tariffs on the two (2) economies.

Market News, Market News and Charts for August 19, 2019USD/CAD

The pair will continue to move higher after it found a support from its previous resistance line. The United State and China are teaming up together to pressure China over Hong Kong. Hong Kong, a former British colony, was handed over to China in 1997 with a 50-year transition agreement before the country will officially become a part of China. Amid this, however, Canada was also struggling on its internal affairs after Canada’s watchdog finds Prime Minister Justin Trudeau of violating ethics law in SNC-Lavalin case. The report just dropped just as Canada is preparing for federal elections in October, potentially complicating Trudeau’s reelection bid. Canada had also distance itself from the U.S. after U.S. President Donald Trump impose tariffs to the country. Aside from this, concern on the looming recession weigh on U.S. economy last week. This will expose Canada directly to the U.S. Dollar’s plummet.

Market News, Market News and Charts for August 19, 2019

NZD/USD

The pair broke down from a major support line, sending the pair lower toward its 49-month low. The Royal Bank of New Zealand (RBNZ) cut its benchmark interest rate by 50-basis-point in response to the 25-basis point cut by the Federal Reserves amid the looming U.S. recession. In July 31, Fed Chair Jerome Powell bowed down to the pressure by U.S. President Donald Trump to cut its interest rate to calm the heating economy and make more room for economic expansion. Despite this, President Trump was not contented by the 25-basis-point cut and suggests that the Fed should do more. In line with this, President Trump imposed 10% tariff on $325 billion worth of Chinese goods last August 01. In August 07, the RBNZ decided to cut its interest rate to offset the Fed’s interest rate cut and the on-going trade war between the two (2) largest economies in the world, the United States and China.

Market News, Market News and Charts for August 19, 2019

AUD/USD

The pair is expected to bounce back from a major support line, sending the pair higher towards a major resistance line. Australia might benefit from the United States’ weakening military. The U.S. is known as the defender of freedom with its participation during the World War II. America to this day is still doing the same thing, sending military overseas where there is instability. However, the current geopolitical order is tearing the U.S. military apart. The United States’ military presence in the Indo-Pacific is suffering following its deployment of military in the Middle East. Aside from this, its allies are needing the backing of the U.S. military in Europe following the rising Russian military activity. The threats of rising China military, however, caught the U.S. off guard. Australia and Japan were now leading the military activity in the region against China’s rising military might.

Market News, Market News and Charts for August 19, 2019

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