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!
EURAUD
The pair will break down from a major support line, sending the pair lower towards a key support line. The Reserve Bank of Australia (RBA) slashed its benchmark interest rate by 15 basis points to 0.10% on Thursday, November 05. This decision sent the Australian dollar lower against currencies bets on AUD. However, the rising number of COVID-19 cases in Europe along with the lockdown in Germany will make the Australian dollar a viable investment against the single currency. In addition to this, several reports from Australia posted better-than-expected results. On the same day as the central bank’s interest rate decision, Australia’s AIG Services Index surged past the 50 points benchmark to 51.4 points from 63.2 points in September. Meanwhile, building approvals jumped by 15.4% from -2.3% in the previous report. These figures suggest Australia’s recovery from the pandemic following the lifting of lockdown in Victoria state.
EURUSD
The pair will fail to break out from a trading range, which will send the pair lower towards a major support line. US futures are rising in today’s session (November 09). The Standard and Poor 500 is up by 1.50% or 52.63 points. The tech-heavy Nasdaq 100 futures, on the other hand, was now trading at 12,287.12 which is 1.76% higher than last Friday’s closing price. Meanwhile, the Dow Jones 30 is up on the same range at 1.45% or 410.0 points up. These optimism in the US equities was supposed to weaken the US dollar in the short-term. However, the surging cases on COVID-19 in Europe makes US assets more attractive to investors. Germany, the EU’s largest economy, entered its second lockdown. The country has total cases of 683,000 with November 07’s data breaking the record of highest daily infections at 23,399. Investors should also keep an eye on the recent developments in Brexit. The UK will officially leave the bloc on January 1st next year.
USDJPY
The pair will break out from a downtrend channel resistance line, sending the pair higher towards a major resistance line. Both the United States and Japan are preparing for a fresh stimulus to cushion the impact of the second wave of COVID-19. Speaker Nancy Pelosi proposed a $2.2 trillion new stimulus to add on the existing $6.6 trillion aid, but analysts agreed that this figure could further go up following the win of Joe Biden in the US elections. On the other hand, the Japanese government is yet to announce the figure for the new package. The two (2) economic powerhouses also posted better-than-expected results on their previous reports. On Q3, the US grew by 33.1% while its initial jobless claims on Thursday, November 05, increased by 751K. This was the lowest number of claimants over the course of the pandemic. Japan’s household spending for September, on the other hand, increased by 3.8% from 1.7% in August.
NZDCAD
The pair will break out from a downtrend resistance line, sending the pair higher towards the 0.92000 resistance area. The Canadian dollar is particularly vulnerable from the status of the labor market. The unemployment change report on Friday, November 06, added only 83.6K compared to 378.2K figure in September. The number last Friday was the lowest jobs addition for the past six (6) months. Cumulatively, there are still 635.9K individuals who are unemployed due to the pandemic. Meanwhile, the unemployment rate dropped to 8.9% from 9.0%. On the other hand, New Zealand Prime Minister Jacinda Ardern unveiled her plans for the remaining days of 2020 following her success in containing the virus and from winning the recent election. PM Ardern said that loans to small businesses will continue to be interest free for the next three (3) years. Her government will also subsidize businesses to employ more individuals amidst the pandemic.
