16 August 2016 Daily Analysis
Hawks and doves espy, FOMC minutes in sight.
Greenback eases slightly during Asian trading hours on Wednesday while investors ponder the release of FOMC meeting minutes for further indication on rate hike timing. Overnight, US dollar was offered higher against other major peers, buoyed by exceedingly optimistic retail sales data which signals for a rebound in consumer spending while lifting expectation for a solid economic growth in the second half of the year. US Commerce Department reported that the retail sales for July rose 0.6%, its largest gain in seven months while topping out economists’ forecast of only 0.4%. In the other region, pound sterling relinquished near five-weeks low of $1.2866 as soft inflation reading eases market expectation for a rate hike anytime soon. According to the Office of National Statistics, consumer prices rose 2.6% for the month of July, a tick below forecast for 2.7% as falling fuel price were offset by higher prices clothes, utilities and food.
Otherwise, crude oil price pared initial losses by 0.32% to $47.70 after American Petroleum Institute showed a major draw in crude stocks albeit slight build in gasoline. On the other hand, gold price extended losses by 0.12% to $1,272.14 as North Korea delayed a decision to fire missiles towards US territory of Guam.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
02:00 USD FOMC Meeting Minutes
Today’s Highlight Economy Date
| Time | Nation & Data | Previous | Forecast | Actual |
| 16:30 | GBP – Average Earnings Index +Bonus (Jun) | 1.8% | 1.8% | – |
| 16:30 | GBP – Claimant Count Change (Jul) | 5.9K | 3.7K | – |
| 17:00 | EUR – GDP (QoQ) (Q2) | 0.6% | 0.6% | – |
| 20:30 | USD – Building Permits (Jul) | 1.275M | 1.250M | – |
| 20:30 | USD – Housing Starts (Jul) | 1.215M | 1.220M | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | -6.451M | -3.058M | – |
GBPUSD
GBPUSD, H4: GBPUSD pared some losses following a rebound from the support level of 1.2850. Such price movement suggests GBPUSD to be traded higher in short-term as technical correction. Otherwise, long-term trend direction still maintained as downside bias.
Resistance level: 1.2900, 1.2950
Support level: 1.2850, 1.2790
EURUSD
EURUSD, H4: EURUSD remains traded within a descending triangle following prior rebound from the strong support level at 1.1720. Stochastic Oscillator which illustrates a rebound signal from oversold region suggests EURUSD to be traded higher in short-term, towards the target of 1.1780.
Resistance level: 1.1780, 1.1840
Support level: 1.1720, 1.1650
USDJPY
USDJPY, H4: USDJPY has extended its gains following prior closure above both moving average line. MACD histogram which illustrate positive divergence suggests USDJPY to advance further up towards the resistance level of 110.90.
Resistance level: 110.90, 111.60
Support level: 110.10, 109.40
CrudeOIL
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the psychological level of 47.00. Recent price action suggests its prices to be traded higher in short-term, towards the target of resistance level at 48.00.
Resistance level: 48.00, 48.55
Support level: 47.45, 47.00
GOLD
GOLD_, H4: Gold price was held steady following prior rebound from the support level of 1271.90. Such price action suggests its prices to be traded higher in short-term as retracement. Otherwise, a closure below the level of 1271.90 would suggest an extension to its downside bias.
Resistance level: 1282.00, 1292.05
Support level: 1271.90, 1265.50