13 September 2018 Daily Analysis
Dollar plunges amid poor economy data.
Dollar index fell by 0.45% to 94.30 at early Asian trading session amid yesterday’s releasement of US economic data, Producer Price Index for the month of August. The PPI data which acts as a leading indicator of consumer price inflation where it accounts for the majority of overall inflation had an actual reading of -0.1% which is 0.3% less than the forecasted data of 0.2%. Besides that, the fall of the dollar was also boosted by the easing of trade tensions between the US and China when the Trump administration invited China for a new round of trade talks. Investors who were uncertain about the outcome of the trade talks start to lose confidence towards the dollar and started to find a much safer asset. In other news, the Aussie dollar strengthened by 0.29% to 0.7185 at early Asian trading session amid the weakening of the dollar as well as the positive sentiment from their releasement of economic data, Employment Change. The Employment Change for the month of August had an actual reading of 44.0K which is higher than the forecasted data of 16.5K. The data had since boosted the value of the Aussie dollar and the confidence of investors towards it.
As for the commodities market, crude oil price plunged by 0.60% to $69.85 per barrel after climbing up to a week high of $71.25 per barrel amid the release of the Crude Oil Inventories report. The actual data had a reading of -5.296M which is much lower than the forecasted data of -1.300M. The decreased in inventories lead to an increased in price for the commodity. On the other hand, gold price increased by 0.58% to 1204.50 since yesterday after the dollar was seen plunging due to poor PPI data reading.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
20:30 EUR ECB Press Conference
Todays’ Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 19:00 | GBP – BoE Interest Rate Decision (Sep) | 0.75% | 0.75% | – |
| 19:45 | EUR – ECB Interest Rate Decision | 0.00% | 0.00% | – |
| 20:30 | USD – Core CPI (MoM) (Aug) | 0.2% | 0.2% | – |
GBPUSD
GBPUSD, H1: GBPUSD was traded lower following prior retracement from the resistance level 1.3070. Recent price action and MACD which illustrate a bearish signal and the formation of a death cross suggest the pair to extend its retracement towards the support level 1.3020.
Resistance level: 1.3070, 1.3095
Support level: 1.3020, 1.2970
EURUSD
EURUSD, H1: EURUSD remain traded in a sideway channel between the resistance level 1.1645 and the support level 1.1615. Due to the lack of signals from the MACD suggest to wait until further clear signal appears such as a breakout above or below the resistance and support level before entering market.
Resistance level: 1.1645, 1.1690
Support level: 1.1615, 1.1565
USDJPY
USDJPY, H1: USDJPY was traded higher following prior breakout above the previous resistance level 111.25. MACD which display a bullish momentum and the formation of a golden cross suggest the pair to extend its gains towards the resistance level 111.65.
Resistance level: 111.65, 111.95
Support level: 111.25, 110.85
CrudeOIL
CrudeOIL, H1: Crude oil price was recently traded lower following prior breakout below the previous support level 70.45. Recent price movement and MACD which display a bearish momentum suggest the commodity to extend its losses towards the support level 69.55.
Resistance level: 70.45, 71.25
Support level: 69.55, 68.55
GOLD
GOLD, H1: Gold price was traded lower following prior retracement from the resistance level 1207.80. Recent price action and MACD which illustrate a bearish momentum suggest the commodity to extend its losses towards the support level 1203.00.
Resistance level: 1207.80, 1212.15
Support level: 1203.00, 1198.95