AUDUSD Slumps to 11-Years Low, Gold At Seven-Years High

Nikolas Papas

Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).

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AUDUSD Slumps to 11-Years Low, Gold At Seven-Years High

February 21, 2020

AUDUSD slumps and asian indices finished mixed today as the PBOC announced more measures in an attempt to offset the coronavirus negative impact on the economy. People’s Bank of China (PBOC) cut the one-year loan prime rate to 4.05% from 4.15% and the five-year rate to 4.75% from 4.80%. Monetary and fiscal stimulus has continued to drive RISKY asset prices higher. 

The Nikkei 225 index ended 0.34% higher at 23479. Japan’s economy shrunk by 6.3% in the fourth quarter as reported last week. That was the biggest decline in GDP since Q2 2014 and the second-biggest drop since the Financial Crisis. The Hang Seng ended 0.17% lower at 27609.

The Singapore FTSE Straits Times finished 0.47% lower at 3198. The Shanghai Composite index closed up 1.84% at 3030. The ASX 200 index in Australia ended 0.25% higher at 7162. 

European stocks trading lower in early trading. The German DAX is 0.13% lower at 13,773. CAC40 index is 0.17% lower at 6,099, while the FTSE MIB in Milan is 0.47% lower at 25,357. In London, the FTSE 100 is 0.01% higher at 7,457.  

AUDUSD slumps
XAUUSD Daily Chart

In the commodities markets, WTI crude is 0.32% higher at $53.66. Brent oil is 0.43% lower at $59.05 per barrel. Gold price consolidates close to 7year highs, at 1,610. The gold outlook is bullish as the gold trades above all crucial daily moving averages. Immediate resistance will be met at $1,612 the recent high, while the support stands at $1,590 the recent low. Silver is 0.90% lower at $18.24.    

Cryptocurrencies continue the correction that started yesterday. BTCUSD is 0.05% higher at $9,600 hitting the daily low at $9,457 and the daily high at $9,725. Bitcoin momentum is positive, as bitcoin is trading above all significant daily moving averages. Support for BTCUSD stands now at $9,457 while the next major support stands at 9,000. On the upside, resistance stands at 10,495 yearly top and then at 10,800 round mark. Ethereum trades 0.29% lower at 257.82 with capitalization at 28.43 billion.

On the upside, immediate resistance for ETHUSD stands at $274.18 recent high while the first support stands at $213.47 the February low. XRPUSD is 1.43% lower at 0.2708. Litecoin (LTCUSD) is 0.69% lower at 70.18. The crypto market cap capitalization is now at $279.08 billion.

In the Lookout: The Australian unemployment rate came in at 5.3% above the forecasts of 5.2%. 

German Gfk Consumer Confidence Survey registered in at 9.8 in line with forecasts. The Germany Producer Price Index (MoM) came in at 0.8% topping the estimates of 0.2% in January. 

The People’s Bank of China (PBOC) set the Yuan reference rate at 7.0026 versus the previous settlement at 7.0012. 

Trading Perspective: In the fx space, the US dollar index is 0.25% higher at 99.85. AUDUSD slumps 0.70 lower at 0.6630 after the unemployment rate came at 5.3%. NZDUSD trades 0.74% lower at 0.6337. USDCHF pair is 0.08% lower at 0.9830.

AUDUSD slumps
AUDUSD Daily Chart

GBPUSD trades 0.44% lower at 1.2859. The initial support for the GBP against the USD now stands at 1.28 low which if broken, might push the GBPUSD pair down towards 1.20. On the upside, initial resistance for GBPUSD stands at 1.32 and then at 1.3511 recent high.

EURUSD trades 0.10% lower at 1.0793 as the pair’s outlook is bearish. EURUSD broke below the 100-day MA and now sellers are in control. Immediate resistance for the EURUSD pair will be met at 1.1224 the yearly high. On the other hand, the first support is at 1.0777 today’s low and then at 1.0750.

USDJPY is trading 0.57% higher at 112.00, having hit the daily low at 111.10 and the daily high at 112.18. The USDJPY will meet first support at 105.43 the August low. On the upside, resistance for the USDJPY now stands at 112.18 the daily high.

USDCAD is 0.30% higher at 1.3259. The USDCAD will meet first support at 1.2950 the recent low while the next major support level stands at 1.29 round figure. On the other side, resistance will be met at 1.3300. 

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