Market News and Charts for October 07, 2020
Hey traders! Below are the latest forex chart updates for Wednesday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
AUD/USD
The risk-off sentiment in the global market and the recent decision of the Reserve Bank of Australia to hold on to its current interest rates have slowed down the Australian dollar in the trading sessions. It is believed that the exchange rate’s prices will fall to their support level as the US dollar sees an opportunity to snatch some gains against the Australian dollar. A lot has happened in the past few weeks for the Australian dollar and the US dollar – the fiscal push of the authorities from the United States, the latest news about Trump, the debate last week, and the decision of the RBA. Looking at it, all of these have mixed effects on the risk sentiment in the trading market. just recently, President Trump reportedly called off the stimulus negotiations between the Republicans and Democrats, casting a cloud of doubt and uncertainties for the American economy. The controversial decision of the president has sparked the risk-off sentiment in the global market.
AUD/CAD
The Canadian dollar manages to force the Australian dollar down in yesterday’s trading session, taking advantage of the weakness faced by bulls after the recent decision of the Reserve Bank of Australia to hold on to its interest rates this October. However, as of today, the trading pair’s prices are seen steadying as the antipodean currency gathers strength to prevent the price from plummeting in the sessions. Unfortunately for bullish investors, it is widely believed that the Australian dollar and Canadian dollar exchange rates will gradually go down to their support level as oil prices steadily help the loonie. See, Canada exports a massive amount of its crude oil to the United States, and since the nation is starting to recovery slowly, it could be great news for the Canadian dollar. Meanwhile, the Aussie receives short-term support from the news about the federal budget and the income tax cuts that will be brought forward for millions of citizens.
AUD/CHF
Looking at the charts, it’s quite evident that the Australian dollar to Swiss franc exchange rate is waiting for a bearish confirmation and that prices would eventually fall to their support level. Most experts from Walls Street believe that the Swiss National Bank’s intervention will not stop the Swiss franc from rallying in the coming weeks, betting that the AUDCHF trading pair would also plummet this month. See, the Swiss National Bank has been intervening on the strength of the Swiss franc this 2020 as the concerns of the market drive the currency’s safe-haven appeal and value higher and higher. Of course, if the currency appreciates too much, it would be bad for the Swiss economy, hence, the SNB intervenes. Just last week, it was reported that the Swiss National Bank has spent about 51.51 billion Swiss francs on the chaotic second quarter of the year, a significant increase from the 38.51 billion Swiss francs from the first quarter of the year.
GBP/JPY
The British pound to Japanese yen exchange rate faces a pullback in yesterday’s trading sessions. However, it’s quite evident that the pair is widely in bullish conditions and most experts believe that it will soon reach its resistance level this month. The British pound remains heavily affected by the ongoing Brexit events and experts are warning that in case of a sudden turn of events, the sterling can turn bearish. Also, it’s worth noting that the pound has been struggling to break through its current resistance level, suggesting that it needs a further boost. And as for the Japanese yen, its safe-haven appeal is helping it keep the sterling under control for the meantime as it takes advantage of the risk-off sentiment in the global market today. The recent move of the United States president to leave the medical facilities has raised concerns among investors as Trump’s health, and those around him could be affected by this somewhat reckless move.