6 September 2017 Daily Analysis
Rate hike questioned, Greenback threatened.
Greenback wobbles near prior one-and-a-half-year low during Asian trading hours on Wednesday as market participants ponder upon the likelihood for another rate hike within the year. The dollar index ticks up 0.01% while last quoted around 92.20. Overnight, US dollar remained subdued against its peers as rising tension between United States and North Korea provides continuous support for the demand of safe haven currencies. In addition, further pessimism around the currency were spurred after several Fed officials suggests to take cautious approach in monetary policy tightening following muted inflationary pressure and a slack in the labor market pace. Referring to the Fed Rate Monitor Tool, investors are currently pricing in at only 31% chance for a rate hike during FOMC December policy meeting. Against other major currencies, EUR/USD rose 0.08% to $1.1923 while USD/JPY sheds 0.16% to 108.64.
In the commodities section, crude oil price depreciates by 0.23% to $48.55 as crude demand may remain subdued due to recent closure of refinery hubs following Hurricane Harvey. Market focus was also drawn to Hurricane Irma which is approaching important shipping lanes in the Caribbean. On the other hand, gold price stabilizes near one-year high at $1,339.20 as North Korea may conduct further test on its founding anniversary of September 9th.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
22:00 CAD BoC Rate Statement
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 09:30 | AUD – GDP (QoQ) (Q2) | 0.3% | 0.9% | 0.8% |
| 14:00 | EUR – German Factory Orders (MoM) (Jul) | 1.0% | 0.3% | – |
| 22:00 | USD – ISM Non-Manufacturing PMI (Aug) | 53.9 | 55.4 | – |
| 22:00 | CAD – BoC Interest Rate Decision | 0.75% | 0.75% | – |
| 04:30 | CrudeOIL – API Weekly Crude Oil Stock | -5.780M | – | – |
GBPUSD
GBPUSD, H4: GBPUSD extended gains following prior rebound from trendline while closing above 20-MA line (red). MACD indicator which shows increasing upward momentum suggests GBPUSD to advance further up, towards the next target at 1.3075.
Resistance level: 1.3075, 1.3160
Support level: 1.3020, 1.2960
EURUSD
EURUSD, H1: EURUSD remains traded within an ascending triangle following prior retrace from the strong resistance level of 1.1925. Stochastic Oscillator which begins to illustrate a retracement signal suggests EURUSD to be traded lower in short-term, towards the lower level of the triangle.
Resistance level: 1.1925, 1.1950, 1.1980
Support level: 1.1885, 1.1855
USDJPY
USDJPY, H4: USDJPY was traded within a downward channel while recently closed below the psychological level of 109.00. Both MA lines which continues to narrow downwards suggests USDJPY to extend its losses towards the target of support level at 108.25.
Resistance level: 109.00, 109.70
Support level: 108.25, 107.50
CrudeOIL
CrudeOIL, H4: Crude oil price was traded lower following prior retracement while currently testing at the support level of 48.55. Both MA lines which continues to expand upwards after the formation of golden cross suggests further upside bias for its prices to extend towards the target of 49.35.
Resistance level: 49.35, 50.40
Support level: 48.55, 48.00
GOLD
GOLD_, Daily: Gold price was traded higher following previous closure above the resistance level of 1320.80. Both MA lines which continues to expand upwards suggests further upside bias for gold price towards the next target at 1350.00.
Resistance level: 1350.00, 1374.75
Support level: 1320.80, 1305.00