The price of crude oil declined in overnight trading as investors focused on demand. In the United States, this demand has been non-existent because many people are staying at home. Many factories have closed and airlines are not operating. Oil storage facilities are filled, and it’s now more expensive for producers to store their oil. As a result, the price of oil declined by about 99% and turned negative for the first time ever. In a statement, Trump said he was considering halting imports from Saudi Arabia. Meanwhile, other oil currencies like the Canadian dollar, Norwegian krone, and Mexican peso dropped by more than 2% in overnight trading. The same was true with other oil stocks like ExxonMobil and Pioneer Natural Resources.
The Australian dollar declined slightly against its key peers after the RBA released minutes of the last meeting. In the minutes, the bank explained its reasoning behind the recent decisions. Before the meeting, the bank had initiated several measures to cushion the economy. It had brought interest rates to an all-time low, initiated a new quantitative easing program, and provided liquidity to the financial system. The minutes came at a time when Australia has done an incredible job in dealing with the coronavirus crisis. The number of new infections has declined and the government has committed to reopening the economy this week.
Today the earnings season in the United States will continue. Some of the key companies that will release their numbers are Infosys, L3Harris, Polymetal, Peugeot, and Truist among others. From the UK, we will receive the employment numbers for February. While these numbers are good, they will not tell the entire story of the labour market because the economy has changed materially since then. We will also receive the ZEW economic sentiment data from Germany, retail sales data from Canada, and existing home sales data from the US.
EUR/USD
The EUR/USD pair declined to an intraday low of 1.0825 during the Asian session. On the 30-minute chart, the price is still above the important support of 1.0810. It is also above the 14-period and 28-period moving averages while the dots of the Parabolic SAR are above the price. The pair may continue falling and possibly test the support at 1.0810.
XBR/USD
The XBR/USD pair declined to a low of 28.07, which is its lowest level since April 1. As the pair dropped, it crossed the important support level of 29.45, where it had formed a triple bottom pattern. The RSI has remained slightly above the oversold level while the current price is slightly above the 23.6% Fibonacci level. Therefore, the pair may continue falling today because of the negative sentiment.
AUD/USD
The AUD/USD pair declined to an intraday low of 0.6293 after the RBA released the minutes of the past meeting. On the hourly chart, the pair has moved below the previous triangle pattern. The pair also moved close to the 38.2% Fibonacci Retracement level, which is also slightly below the short and medium-term moving averages. The RSI has moved to the oversold level of 30. Therefore, the pair may continue declining and possibly test the support of 0.6263.
