07 September 2018 Daily Analysis
Greenback weakening amid poor economy data.
Dollar index fell by 0.02% to 94.94 at early Asian trading session amid yesterday’s releasement of US economic data of ADP Nonfarm Employment Change for the month of August which measures the nonfarm sector employment change. The actual data of 163K was lower than the forecasted data of 188K which had since contribute to weighing on the dollar as uncertainties towards the dollar grew among investors. Although there was a better data reading from the ISM Non-Manufacturing PMI with an actual reading of 58.5 compared to the forecasted data of 57.0, it was insufficient to create a positive sentiment for the dollar as tensions and conflicts of the trade war between the US and China grew stronger. In other news, Canadian dollar also known as Loonie was seen regaining its strength after BoC Deputy Governor Carolyn Wilkins said that a breakdown in the trade talks between the US and Canada would not prevent the central bank from raising interest rates. Furthermore, Mexican officials stated that the NAFTA will not come into an agreement until Canada rejoins the talk and enter into the same agreement with the US. This has since created a positive sentiment for Canada hence boosting investors’ confidence towards loonie. The pair is currently trading lower by 0.09% at 1.3130 as of writing.
As for the commodities market, crude oil price continues to fall by 0.16% to $67.75 per barrel despite a positive data in the Crude Oil Inventories where the actual data of -4.302M beats the forecasted data of -1.294M. Although the data shows a much lesser supply of crude oil, it wasn’t strong enough to create a positive sentiment for the market as investors are focusing more on the trade wars between the US and China where US will be imposing another round of tariffs on $200 billion Chinese goods. On the other hand, gold price edged up by 0.20% to $1202.15 per troy ounce as the dollar continues to weaken, providing a boost to the gold price.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
20:30 USD FOMC Member Rosengren Speaks
Todays’ Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 17.00 | EUR – GDP (QoQ) (Q2) | 0.4% | 0.4% | – |
| 20.30 | USD – Average Hourly Earnings (YoY) (Aug) | 2.7% | 2.7% | – |
| 20.30 | USD – Nonfarm Payroll (Aug) | 157K | 191K | – |
| 20.30 | CAD – Net Change in Employment | 54.1K | 5.0K | – |
| 20.30 | CAD – Unemployment Rate | 5.8% | 5.9% | – |
GBPUSD
GBPUSD, H1: GBPUSD was traded lower following prior retracement from the resistance level 1.2945. Recent price action and MACD which illustrate a bearish signal suggest the pair to extent its losses after a breakthrough from the support level 1.2910.
Resistance level: 1.2945, 1.2975
Support level: 1.2910, 1.2870
EURUSD
EURUSD, H1: EURUSD was traded lower following prior breakthrough below the support level 1.1625. MACD which display a persistent bearish momentum suggest the pair to extend its losses towards the support level 1.1580.
Resistance level: 1.1625, 1.1650
Support level: 1.1580, 1.1530
USDJPY
USDJPY, H1: USDJPY was traded higher following prior rebound from the support level 110.45. MACD which shows a starting bullish momentum suggest the pair to extend its rebound towards the resistance level 110.70.
Resistance level: 110.70, 110.90
Support level: 110.45, 110.15
CrudeOIL
CrudeOIL, H1: Crude oil price was recently traded higher following prior breakout above the previous resistance level 67.75. Recent price movement and MACD which illustrate a starting bullish momentum suggest the commodity to extend its gains towards the resistance level 68.30.
Resistance level: 68.30, 69.10
Support level: 67.75, 67.25
GOLD
GOLD, H1: Gold price was traded higher following prior breakout above the previous resistance level 1198.95. Recent price action and MACD which signals a bullish bias suggest the commodity to extend its gains after a breakout above the resistance level 1203.00.
Resistance level: 1203.00, 1207.80
Support level: 1198.95, 1196.00