7 January 2022 Morning Session Analysis
Greenback slumps after bearish data.
Greenback retraces from its previous high after US releases downbeat economic data on yesterday. Last week, Initial Jobless Claims came in at 207,000, significantly higher than forecast of 197,000. However, the latest jobless claims total was significantly lower when compared to pre-pandemic level which hovers at an average of 220,000. The data suggests that hiring remains consistent despite Omicron outbreak since late December. On the other hand, ISM Non-Manufacturing PMI depreciates to 62.0 in December, lower than expected reading of 66.9. Non-manufacturing sector experienced a downfall in terms of overall output due to ongoing supply chain issues as well as shortage of staff. Nonetheless, losses on the greenback remains limited as Federal Reserve signals faster pace of monetary policy tightening by initializing balance sheet normalization sooner. As of writing, dollar index was down by 0.01% to 96.19.
In the commodities market, crude oil price rose 0.14% to $79.17 per barrel. Ongoing riots in Kazakhstan due to recent oil price increase may jeopardize the country’s oil output in the near-term. On the other hand, gold price was down by 0.03% to $1,790.81 a troy ounce due to hawkish signal from Federal Reserve’s meeting minutes.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 17:30 | GBP – Construction PMI (Dec) | 55.5 | 54 | – |
| 18:00 | EUR – CPI (YoY) (Dec) | 4.90% | 4.70% | – |
| 21:30 | USD – Nonfarm Payrolls (Dec) | 210K | 400K | – |
| 21:30 | USD – Unemployment Rate (Dec) | 4.20% | 4.10% | – |
| 21:30 | CAD – Employment Change (Dec) | 153.7K | 27.5K | – |
| 23:00 | CAD – Ivey PMI (Dec) | 61.2 | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from higher levels. MACD which illustrate downward momentum suggests the index to be traded lower in short-term.
Resistance level: 96.35, 96.60
Support level: 96.10, 95.85
GBPUSD, H4: GBPUSD was traded higher following prior rebound from lower level. MACD which illustrate diminished bearish momentum suggests the pair to be traded higher in short-term.
Resistance level: 1.3570, 1.3630
Support level: 1.3510, 1.3470
EURUSD, H4: EURUSD was traded higher following prior rebound from lower level. MACD which illustrate diminished bearish momentum suggests the pair to be traded higher in short-term.
Resistance level: 1.1320, 1.1370
Support level: 1.1285, 1.1250
USDJPY, H4: USDJPY was traded higher following prior rebound from lower levels. MACD which illustrate diminished bearish momentum suggests the pair to be traded higher in short-term.
Resistance level: 116.25, 117.00
Support level: 115.40, 114.55
AUDUSD, H4: AUDUSD was traded higher following prior rebound from lower level. MACD which illustrate diminished bearish momentum suggests the pair to be traded higher short-term.
Resistance level: 0.7180, 0.7225
Support level: 0.7140, 0.7085
NZDUSD, H4: NZDUSD was traded higher following prior rebound from lower levels. MACD which illustrate diminished bearish momentum suggests the pair to be traded higher in short-term.
Resistance level: 0.6780, 0.6830
Support level: 0.6740, 0.6700
USDCAD, H4: USDCAD was traded lower following prior retracement from higher levels. MACD which illustrate bearish signal suggests the pair to be traded lower in short-term.
Resistance level: 1.2765, 1.2835
Support level: 1.2690, 1.2620
USDCHF, H4: USDCHF was traded lower following prior retracement from higher level. MACD which illustrate diminished bullish momentum suggests the pair to be traded lower in short-term.
Resistance level: 0.9230, 0.9255
Support level: 0.9210, 0.9190
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from higher levels. MACD which illustrate diminished bullish momentum suggests its price to be traded lower in short-term.
Resistance level: 80.15, 82.65
Support level: 77.35, 75.15
GOLD_, H4: Gold price was traded higher following prior rebound from lower levels. MACD which illustrate diminished bearish momentum suggests its price to be traded higher in short-term.
Resistance level: 1797.60, 1812.80
Support level: 1784.90, 1765.50