5 September 2017 Daily Analysis
Market uneased as North Korea on the edge.
US dollar remained subdued against other major peers on Tuesday with investors keeping an eye out on further political risk escalation between the United States and North Korea. The dollar index eased 0.01% and last seen around 92.63. Last Friday, greenback received broad selling pressure due to a disappointing US employment report which continued to weigh on the prospect for a third interest rate hike by year end. Likewise, overall market sentiment towards the currency were further dampened after North Korea announced on Sunday that they had conducted a hydrogen bomb test which is intended to be mounted on an intercontinental ballistic missile (ICBM). Such provocation has led to higher risk aversion among investors while increasing the demand for safe haven currencies such as Japanese Yen and Swiss Franc. For the week, market participants will be focusing on Thursday’s European Central Bank meeting for new clues with regards to ultra-loose policy tapering and US report on service sector growth.
In the commodities market, crude oil price rose 0.21% to $47.39 as refinery activity along the US Gulf Coast slowly resumed its operation after being hit by tropical storm Harvey. Similarly, gold price appreciates by 0.64% to $1,333.03 following heightened risk at the Korean Peninsula.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
12:30 AUD RBA Rate Statement
20:00 USD FOMC Member Brainard Speaks
01:10 USD FOMC Member Kashkari Speaks
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 09:45 | CNY – Caixin Services PMI (Aug) | 51.5 | 51.8 | 52.7 |
| 12:30 | AUD – RBA Interest Rate Decision (Sep) | 1.50% | 1.50% | – |
| 13:45 | CHF – GDP (QoQ) (Q2) | 0.3% | 0.5% | – |
| 15:15 | CHF – CPI (MoM) (Aug) | -0.3% | 0.0% | – |
| 15:55 | EUR – German Services PMI (Aug) | 53.4 | 53.4 | – |
| 16:00 | EUR – Services PMI (Aug) | 54.9 | 54.9 | – |
| 16:30 | GBP – Services PMI (Aug) | 53.8 | 53.5 | – |
| 17:00 | EUR – Retail Sales (MoM) (Jul) | 0.5% | -0.2% | – |
| 22:00 | USD – Factory Orders (MoM) (Jul) | 3.0% | -3.2% | – |
GBPUSD
GBPUSD, H4: GBPUSD was traded lower following prior retracement while recently closed below the 20-MA line (red). MACD indicator which illustrate diminishing upward momentum suggests further downside bias towards the next target at 1.2890.
Resistance level: 1.2960, 1.3020
Support level: 1.2890, 1.2830
EURUSD
EURUSD, H4: EURUSD was traded in an uptrend while currently testing near the 20-MA line (red). MACD indicator which illustrate diminishing downward momentum suggests EURUSD to be traded higher after successfully closing above the resistance level of 1.1910.
Resistance level: 1.1910, 1.1970
Support level: 1.1865, 1.1815
USDJPY
USDJPY, H1: USDJPY remained traded within a downward channel following previous retracement from the upper level. MACD histogram which begins to form a downward signal suggests USDJPY to extend its losses towards the next target at 109.15.
Resistance level: 109.45, 109.75
Support level: 109.15, 108.75
CrudeOIL
CrudeOIL, H4: Crude oil price was traded higher following prior breakout from the downward trend line. Both MA lines which continues to narrow upward suggests crude oil price to extend its upward momentum after successfully closing above the resistance level of 47.40.
Resistance level: 47.40, 48.00
Support level: 46.70, 46.15
GOLD
GOLD_, Daily: Gold price extended its rally following prior closure above the resistance level of 1320.80. Both MA lines which continues to expand upwards suggests further upside bias for gold price to advance towards the target of 1350.00.
Resistance level: 1350.00, 1374.75
Support level: 1320.80, 1305.00