Market News and Charts for July 07, 2020
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!
The Aussie is muted this Tuesday against the Japanese yen. Bulls are having a hard time regaining their momentum in sessions as the safe-haven appeal of the Japanese yen kicks in. Still, the pair’s price is on track to reach its resistance by the halfway point of the month as the bullish market continues to thrive. As of writing, the Japanese yen is also seen weakening due to the poor Japanese economic data. This suggests that the pair doesn’t have adequate strength to ultimately push prices lower. And as for the Japanese yen’s outlook, it enters the second half of the year on a critical time since the number of coronavirus cases around the world, and in major economies continue to rise. While at the same time, there has been significant progress to coronavirus vaccines which could potentially flip the market’s mood anytime. This means that the yen, a known anti-risk asset, will face fluctuations in strength as the risk mood goes on and off.
The Australian dollar falters as Melbourne once again enters a lockdown due to the rising number of cases there. The US dollar immediately took advantage of this and redeemed most of its losses from yesterday’s trading. However, it’s evident that the US dollar does not have what it takes to completely regain its dominance over the antipodean currency. This is because of the challenges faced by the greenback economically and fundamentally. Also, the bullish market for the Australian dollar is still significantly strong and isn’t looking like it would end anytime soon. This means that the pair’s prices are widely on track to still reach their resistance level this July. On the other hand, the US dollar remains on weak levels amidst the spike in coronavirus cases which should have caused it to rally. However, investors are preferring other assets instead of the US dollar, mainly equities which have been greatly performing in the past few sessions.
The Australian dollar to Canadian dollar exchange rate is bound to continue its climb in the coming trading sessions. However, as of today, the pair is seen trading lower as the Aussie momentarily slips. The main factor that contributed to today’s slight fall is the broader weakness faced by the Australian dollar due to Melbourne’s return to lockdown. And on the other hand, the Canadian dollar immediately took advantage as it rides the wave of risk appetite in the global currency market. Aside from that, the loonie receives a much need boost from the optimism in the crude market. In fact, oil prices are largely anticipated to continue climbing as the supply gets thinner following the unprecedented production cuts made by the Organization of the Petroleum Exporting Countries and their allies including Russia. The said oil producers are working hard to prevent prices from falling and has vowed to extend the cuts for the whole month of July.
The Australian dollar slightly falls against the Swiss franc this Tuesday following the news that Melbourne entered a lockdown yet again. Still, the pair’s prices are expected to remain bullish and eventually climb towards its resistance by the halfway mark of the month. Moreover, it was just recently reported that Metropolitan Melbourne will go into lockdown mode on Wednesday after the state recorded about 191 new confirmed coronavirus cases, the highest daily record since the pandemic reached Australia. Daniel Andrews, Victorian premier, said that the people living in the area and as well as Mitchell shire would be placed into a strict lockdown mode to contain the virus immediately. Andrews added that those who can leave their own homes are those who have valid reasons such as work, exercise, education. Aside from that, the premier said that with those high numbers, it would be impossible for the authorities to conduct contact tracing.
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