USD Overview

Yesterday, USD strengthened against most major currencies except CAD.

House Democrats passed a bill yesterday that will fund the government through 11 December, avoiding a shutdown in the government amid the COVID-19 pandemic. The bill will be used to provide assistance to people in need during the pandemic.

The U.S. flash PMI data will be released later at 2145 (SGT).

  • Flash Manufacturing PMI (Forecast: 52.5, Previous: 53.1 revised from 53.6)
  • Flash Services PMI (Forecast: 54.5, Previous: 55.0 revised from 54.8)

Federal Reserve Chairman Jerome Powell will be testifying on the economic impacts of COVID-19 before the House Select Committee later at 2200 (SGT). During this time, there may be volatility in the USD.


NZD/USD Outlook

Overall, NZD/USD is trending upwards. Recently, NZD/USD trended lower into the key level of 0.66.

Earlier today, the Reserve Bank of New Zealand (RBNZ) held interest rates unchanged at 0.25%. The central bank will continue with the Large Scale Asset Purchase (LSAP) programme of up to $100 billion. In addition, the RBNZ highlighted the additional tools that they may employ which include a Funding for Lending Programme (FLP), negative interest rate and purchases of foreign assets. The committee members also preferred to launch an FLP before the end of this year.

Currently, NZD/USD is testing the key level of 0.66. Its next support zone is at 0.65200 and the next resistance zone is at 0.67600.
If NZD/USD breaks below the key level of 0.66, look for short-term selling opportunities up until Fed Chair Powell’s testification at 2200 (SGT).


AUD/USD Outlook

Overall, AUD/USD is ranging across. Recently, AUD/USD trended downwards, breaking below the key level of 0.72.

Earlier today, it was reported that Westpac economists expect the Reserve Bank of Australia (RBA) to cut its interest rate from 0.25% to 0.10% during their next monetary policy meeting on 6 October, causing AUD/USD to weaken.

The Australian flash PMI data released earlier today indicated an increase in business activities in both the services and manufacturing sectors.

  • Flash Manufacturing PMI (Actual: 55.5, Forecast: NA, Previous: 53.6 revised from 53.9)
  • Flash Services PMI (Actual: 50.0, Forecast: NA, Previous: 49.0 revised from 48.1)

AUD/USD’s next support zone is at 0.71000 and the next resistance zone is at 0.72500.
Look for short-term selling opportunities of AUD/USD up until Fed Chair Powell’s testification at 2200 (SGT).


USD/JPY Outlook

Overall, USD/JPY is trending downwards. Recently, USD/JPY bounced off the support zone of 104.400.

Currently, USD/JPY is testing to break above the key level of 105. Its next support zone of 104.400 and the next resistance zone is at 105.400.
If USD/JPY breaks above the key level of 105, look for short-term buying opportunities up until Fed Chair Powell’s testification at 2200 (SGT).


EUR/USD Outlook

Overall, EUR/USD is trending downwards. Recently, EUR/USD broke below the key level of 1.17.

The French flash PMI data will be released later at 1515 (SGT).

  • French Flash Service PMI (Forecast: 52.5, Previous: 51.5 revised from 51.9)
  • French Flash Manufacturing PMI (Forecast: 50.6, Previous: 49.8 revised from 49.0)

The German Flash PMI data will be released later at 1530 (SGT).

  • German Flash Services PMI (Forecast: 53.0, Previous: 52.5 revised from 50.8)
  • German Flash Manufacturing PMI (Forecast: 52.0, Previous: 52.2 revised from 53.0)

The eurozone flash PMI data will be released later at 1600 (SGT).

  • Flash Manufacturing PMI (Forecast: 51.5, Previous: 51.7)
  • Flash Services PMI (Forecast: 51.0, Previous: 50.5 revised from 50.1)

EUR/USD’s next support zone is at 1.15300 and the next resistance zone is at 1.17800.
Look for selling opportunities of EUR/USD.


GBP/USD Outlook

Overall, GBP/USD is trending downwards. Recently, GBP/USD broke the support zone of 1.28000.

Yesterday, UK Prime Minister Boris Johnson announced new COVID-19 restrictions for England that will last for 6 months. Johnson also encouraged people to work from home whenever possible to slowdown the spread of COVID-19.

Also, during his webinar yesterday, Bank of England (BoE) Governor Andrew Bailey mentioned that the central bank has looked into the possibility of cutting interest rate further into the negative level. Nonetheless, he emphasized that this does not imply the certainty of applying negative interest rate, thus downplaying the possibility.

The UK flash PMI data will be released later at 1630 (SGT).

  • Flash Manufacturing PMI (Forecast: 54.3, Previous: 55.2 revised 55.3)
  • Flash Services PMI (Forecast: 57.0, Previous: 58.8 revised from 60.1)

GBP/USD’s next support zone is at 1.26500 and the next resistance zone is at 1.28000.
Look for short-term selling opportunities of GBP/USD up until Fed Chair Powell’s testification at 2200 (SGT).


USD/CAD Outlook

Overall, USD/CAD is trended upwards.

Currently, USD/CAD is moving towards the resistance zone of 1.33500 and the next support zone is at 1.32300.
If USD/CAD breaks the resistance zone of 1.33500, look for short-term buying opportunities up until Fed Chair Powell’s testification at 2200 (SGT).


GBP/JPY Outlook

Overall, GBP/JPY is trending downwards.

Yesterday, UK Prime Minister Boris Johnson announced new COVID-19 restrictions for England that will last for 6 months. Johnson also encouraged people to work from home whenever possible to slowdown the spread of COVID-19.

Also, during his webinar yesterday, Bank of England (BoE) Governor Andrew Bailey mentioned that the central bank has looked into the possibility of cutting interest rate further into the negative level. Nonetheless, he emphasized that this does not imply the certainty of applying negative interest rate, thus downplaying the possibility.

The UK flash PMI data will be released later at 1630 (SGT).

  • Flash Manufacturing PMI (Forecast: 54.3, Previous: 55.2 revised 55.3)
  • Flash Services PMI (Forecast: 57.0, Previous: 58.8 revised from 60.1)

Currently, GBP/JPY is testing the support zone of 133.780 and the next resistance zone of 136.200.
Look for selling opportunities of GBP/JPY if it breaks the support zone of 133.780.


EUR/JPY Outlook

Overall, EUR/JPY is trending downwards.

The French flash PMI data will be released later at 1515 (SGT).

  • French Flash Service PMI (Forecast: 52.5, Previous: 51.5 revised from 51.9)
  • French Flash Manufacturing PMI (Forecast: 50.6, Previous: 49.8 revised from 49.0)

The German Flash PMI data will be released later at 1530 (SGT).

  • German Flash Services PMI (Forecast: 53.0, Previous: 52.5 revised from 50.8)
  • German Manufacturing PMI (Forecast: 52.0, Previous: 52.2 revised from 53.0)

The eurozone flash PMI data will be released later at 1600 (SGT).

  • Flash Manufacturing PMI (Forecast: 51.5, Previous: 51.7)
  • Flash Services PMI (Forecast: 51.0, Previous: 50.5 revised from 50.1)

EUR/JPY’s next support zone is at 121.700 and the next resistance zone is at 124.600.
Look for selling opportunities of EUR/JPY.


close

Get notified when there is a new post. Read new post to earn 10 points!

1 Star2 Stars3 Stars4 Stars5 Stars (1 votes, average: 5.00 out of 5)
Loading...

Rate an article for points!

By Jin Dao Tai

JinDao Tai is an Entrepreneur, Award-Winning Forex Coach & Trainer, International Speaker and Multi-Million Dollar Trader. Starting out his career as an economic & financial consultant in Australia, one day he decided to change his life and pivoted into multiple entrepreneurship endeavours and eventually into managing a multi-million dollar portfolio.

Leave a Reply

Your email address will not be published. Required fields are marked *