3 August 2017 Daily Analysis
ADP disappoints, NFP akin?
Greenback rebounds from 14-months low on Thursday after private sector jobs report fumbled from economist’s expectations which has pulled down market’s sentiment towards the economic giant. According to ADP and Moody’s Analytics, US economy has generated only 178,000 jobs in the private sector for the month of July, a short of expected gain with 185,000. The sluggish performance in private hiring signals a possible slowdown in the US labor market which may hinder US Federal Reserve from pursuing its gradual approach to tighten their monetary policy. Likewise, the dollar index was up 0.14% to 92.81 against six major peers. In the other region, pound sterling was held steady at $1.3217 against the greenback as market participants awaits Bank of England’s monetary policy decision and its accompanying which may offer further insights regarding their stance towards its future policy direction.
In the commodities section, crude oil price slumped 0.34% to $49.92 as EIA reported a less-than-expected draw in crude inventories which has reduce some optimism in the market sentiment. Otherwise, gold price depreciates by 0.75% to $1,262.20 as the greenback stages its rebound from 14-months low.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 09:30 | AUD – Trade Balance (Jun) | 2.471B | 1.800B | 0.856B |
| 16:30 | GBP – Services PMI (Jul) | 53.4 | 53.6 | – |
| 19:00 | GBP – BoE Interest Rate Decision (Aug) | 0.25% | 0.25% | – |
| 20:30 | USD – Initial Jobless Claims | 244K | 242K | – |
| 22:00 | USD – Factory Orders (MoM) (Jun) | -0.8% | 2.9% | – |
| 22:00 | USD – ISM Non-Manufacturing PMI (Jul) | 57.4 | 57.0 | – |
GBPUSD
GBPUSD, H1: GBPUSD remains traded within an upward channel while currently testing near the bottom level. A successful rebound from this level would suggest GPBUSD to remain traded within the upward channel while next target will be at 1.3240.
Resistance level: 1.3240, 1.3280
Support level: 1.3200, 1.3170
EURUSD
EURUSD, H4: EURUSD pared its earlier gains following a retrace from the resistance level of 1.1900. MACD which illustrates diminished upward momentum suggests EURUSD to be traded lower in short-term as technical correction. Otherwise, long-term trend direction still suggests an uptrend.
Resistance level: 1.1850, 1.1900
Support level: 1.1775, 1.1700
USDJPY
USDJPY, H1: USDJPY was traded lower following prior retracement from the downward trend line. Recent closure below the 20-MA line (red) suggests further downside bias to advance towards the target of support level at 110.45.
Resistance level: 110.80, 111.05
Support level: 110.45, 110.20
CrudeOIL
CrudeOIL, H4: Crude oil price halts its recovery while threading lower following a retracement from the 20-MA line (red). Such price movement suggests further bearish bias on its price to advance towards the support level at 49.25.
Resistance level: 49.85, 50.40
Support level: 49.25, 48.45
GOLD
GOLD_, H4: Gold price has extended its losses following prior closure below the support level of 1265.50. MACD histogram which illustrates negative divergence suggests gold price to advance further down, towards the strong support level at 1257.60.
Resistance level: 1265.50, 1273.95
Support level: 1257.60, 1247.45