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!
EUR/AUD
The pair will bounce back from a major support line, sending the pair higher towards a key resistance line. Australia’s Manufacturing and Services Purchasing Managers Index (PMI) reports both recorded above 50 points results. Figures came in at 50.0 and 55.5 points, respectively. Despite these good results, however, a collapse in the country’s housing market could ruin Australia’s economic recovery efforts. A recent report from National Housing Finance and Investment Corporation (NHFIC) suggests that rent prices and construction growth could slowdown due to COVID-19. Australia was among the top destinations for international students and in September 2019 there are about 720,150 of them. That’s an 11.0% increase from 2019. This growth drives the increase in Australia’s property market. On the other hand, the European consumer confidence report continues to record increasing figures.
EUR/USD
The pair failed to break out from a major resistance line, sending the pair lower towards a major support line. The USD will continue to see gains in coming sessions following its impressive initial jobless claims report. The number was 870K, which was the report’s fourth consecutive week of 800K results. This suggests that the economic recovery efforts by the US government and the Fed are beginning to materialize. Meanwhile, the EU was full of mixed signals from several reports. Among its most recent reports published was today’s Spain trade balance. Spain was among the EU countries that were hit hard by the deadly virus. As for the country’s report, it recently saw another negative figure. This was following the two (2) consecutive positive data for the month of August. Another fundamental event that could unite or divide the EU was Brexit. Currently, there are some disagreements between the parties which could impact Europe’s economic growth.
USD/JPY
The pair will bounce back from a key support line, sending the pair higher towards a major resistance line. The weak results for reports and the recent resignation of Prime Minister Shinzo Abe is taking a toll in the Japanese yen. Figures came in at 47.3 and 45.6 points, respectively, on Japan’s Manufacturing and Services Purchasing Managers’ Index (PMI) reports. Although this was slightly higher than their previous results, the reports still fail to record above 50.0 points figures. The 50.0 level separates contraction (50 below) and expansion (50 above). The untimely resignation of the country’s leader also added to the uncertainty in the third largest economy in the world. Meanwhile, the impressive initial jobless claims report from last Thursday, September 17, is driving the demand for the US dollar. Aside from this, the Existing Home Sales report recorded 6.0. million figure, the highest in a decade. This supported the growing optimism for USD.
NZD/CAD
The pair will fail to break out from a major resistance line, sending the pair lower towards a major support line. New Zealand was among the countries who successfully contained the coronavirus pandemic. In line with this, support for the country’s Prime Minister Jacinda Ardern was at its all-time high. However, the priority for the country’s head was not economic growth but human development. In fact, New Zealand was among the countries who are experimenting the usage of human development index as an indicator rather than gross domestic product (GDP). Furthermore, its recent budget was named “Wellbeing” budget. Meanwhile, Canada’s recent reports were mixed. ADP nonfarm employment change posted -205.4K, better than the previous record of 523.0K but still in negative territory. Meanwhile, retail sales grew by 0.6%, lower than 1.0% expectations and a huge decline from 22.7% growth for the month of June.
