Market News and Charts for June 18, 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!
Investors of the Australian dollar are heartbroken from the recent jump in the country’s unemployment rate. That coupled with the ongoing trade war between Washington and Beijing, the tension in the China-India border, and the lost of risk appetite in the market is causing the antipodean currency to stumble in the market. The Australian dollar to US dollar exchange rate should drop down to its support level before the month ends. However, there are serious concerns for the US dollar as the massive US deficit could cause it to collapse and lose its steam in the trading sessions. The trading pair is only gradually going down, as opposed to strong bearish drop to its support level. The buck has soared past other risk and safe-haven currencies in the market, exerting dominance among investors. The dominance of the greenback is at risk despite surviving major hurdles such as the trade war and the coronavirus pandemic.
The Japanese yen takes advantage of the weakness faced by the Australian dollar. The safe-haven appeal of the Asian currency is helping it to come out triumphant in the trading sessions. Although it may not be enough to record strong gains, it’s still helping it to pull the pair’s price lower and lower. The pair should drop to its support level this latter half of June. The Japanese yen is still under the weight of the current recession faced by the country. But it’s also relying on the news about the continuous chaos around the globe. However, the more stimulus that the Japanese authorities unleash, the Japanese yen continues to weaken as the currency is already pressured by a ton of factors. Just recently, it was reported that the Bank of Japan is ramping up its coronavirus support package to more than a whopping $1 trillion. The Japanese central bank plans to have zero interest loans for domestic banks amidst the pandemic if they wish to increase their lending powers.
The Canadian dollar advances higher and higher in the sessions. The pair is inching its way down towards its support level and is widely predicted to reach it by the end of the month. Although it looks like its gains against the Australian dollar is being limited by the recent statement of the Bank of Canada. But it’s worth noting that the antipodean currency is also buckling under the intensifying geopolitical climate that is matched with upsetting data from the country’s recent unemployment rate. Just recently, Bank of Canada governor Tiff Macklem said that the bank is inclined to keep its current monetary policy tools. This includes the relatively low interest rates in the country which is set to help the economy recover from the damaging effects of the coronavirus pandemic. Macklem, who has just made his first appearance as the Bank of Canada’s head, told the Canadian parliamentary committee that the bank is focused on delivering low interest rates.
The New Zealand dollar stalls the Us dollar. The exchange rate is seen making limited movements in the trading sessions. It appears that the kiwi is once again vulnerable as investors fear the new confirmed coronavirus cases in the country and the loss of risk sentiment in the market now. The worse than expected unemployment rate report from Australia is exposing the New Zealand dollar to even more volatility. As of writing, the US dollar is also moving slowly as the market remains clouded by uncertainty. Both currencies are struggling to gain control of the momentum. Luckily for bearish investors, the NZDUSD trading pair is forecasted to go down to its support by the end of the month. The euphoria for New Zealand is slowly diminishing as the country reports another new case this Thursday. A man who has a travel history from Pakistan, Doha, and Melbourne tested positive for the contagious and deadly virus.
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