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Market News and Charts for May 29, 2020

Hey traders! Below are the latest forex chart updates for Friday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!

 

USD/CAD

The Canadian dollar is ending the month steady against the US dollar. But signs say that the pair will eventually continue its downward trajectory in the coming sessions. The stabilization of the crude market that is supported by the reopening of economies is helping the Canadian dollar’s rally. As of writing, its seen that the Canadian dollar is back on the defensive against the US dollar, this is because of the slight drop in oil prices. But as the US dollar continues to get weaker, the loonie should bounce back. The main reason behind the Canadian dollar’s rally is the selling pressure on the US dollar from portfolio managers. Based on the current status of the US stock indices, portfolio managers will be selling their US dollars to realign their portfolios with benchmarks. Another factor that’s supporting bearish investors is the pressure from the renewing risk appetite in the global market that’s very much backed by post-pandemic plans.

Market News, Market News and Charts for May 29, 2020

NZD/USD

The New Zealand dollar to US dollar exchange rate is very much riding on the risk appetite euphoria in the global market. The pair is heading to its resistance in the coming sessions as bullish investors brush ofF the trade tension between Washington and Beijing. Meaning, the safe-haven appeal of the greenback is not working and is overweighed by the hopes for the market. The New Zealand dollar is positively riding on the hopes of a whole global economic recovery. Looking at the bigger picture, the long-term outlook of the global economy could eventually pressure the New Zealand dollar. This is because the unemployment won’t immediately be cleared, and the growth won’t be as fast as investors would want to. In addition to that, the cost shock that will come as countries rebuild their economies would eventually pressure the kiwi. But in the meantime, it looks like the short-term and medium-term direction is widely bullish.

Market News, Market News and Charts for May 29, 2020

AUD/JPY

The antipodean currency is forcing the safe-haven Japanese yen on the defensive. Although at the time of writing, the pair is currently trading lower. But the pair is currently stuck at a rising wedge pattern. Eventually, the pair should climb to its resistance level. The Australian dollar has drawn strength from the risk-taking appetite in the global market which has brushed off the intensifying geopolitical tension between the two biggest economies in the world, and China vs. India. The Japanese yen is slowing down as the country continues to inject more money to save its economy that’s currently in a deep economic slump. The Japanese yen has lost its safe-haven appeal when the government announced that it is on a recession. And to make matters even gloomier for its investors, the Japanese yen still sees that the economy will continue to fall despite the improving situation. The situation is expected to become “extremely severe” says the Cabinet Office.

Market News, Market News and Charts for May 29, 2020

AUD/USD

The sentiment-linked currency remains on positive territories, forcing bearish on the defensive. Thanks to the strong risk appetite in the market, the Australian dollar has climbed from the tragically sharp drop in March. The exchange is on track to reach its resistance in the first half of June. The robust strength displayed by bullish investors is hugely thanks to the hopes for the coronavirus vaccine race. Another fundamental that’s supporting the Australian dollar is the latest liquidity infusion of the People’s Bank of China, but the angst against China is limiting its gains. The pair is also struggling to rally higher because of the intensifying trade tensions between the United States and China. There isn’t much news expected from the Australian economy soon, so, investors are eyeing on other fundamentals. The RBA governor’s statement just yesterday boosted the Australian dollar even further against the US dollar.Market News, Market News and Charts for May 29, 2020

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