7 August 2019 Morning Session Analysis
Greenback alleviated, eyes on future data.
US dollar managed to pare its losses on yesterday after China took steps to limit recent weakness in Chinese yuan while reassuring investors that it would not weaponize its currency for trade dispute in between US and China. Greenback extended its recovery from prior low level following diminishing demand for safe-haven such as Japanese yen and Swiss Franc after People’s Bank of China (PBOC) set the daily currency limit for Chinese yuan at a stronger than expected rate. The move came after yuan slipped past 7RMB per dollar which Washington officially labelled China as a “currency manipulator”. However, overall gains on the US dollar were limited following weaker-than-expected employment data from yesterday night. According to JOLTs, Job Openings for the month of June came in at only 7.348 million, slightly lower than economists’ forecast of 7.450 million. For the time being, investors will continue to scrutinize economic releases from the US in order to gauge the sentiment for next rate cut from the Federal Reserve. On the other hand, pound sterling remained pressured amid rising fears upon UK whom may leave the European Union without any substantial trade deal on 31st October 2019. Senior EU and UK diplomats reportedly left Brussels with the impression that a “No-Deal Brexit” is the center of scenario after EU counterpart rejected to renegotiate Brexit deal. As of writing, the dollar index was quoted up 0.06% to 97.33 while pair of GBP/USD ticked down 0.01% to 1.2164.
In the commodities market, crude oil price depreciates by 0.17% to $53.31 per barrel. Oil futures were dumped as US-China trade tension continue to rise which may threaten global economic growth and its demand towards crude oil in the future. On the other hand, gold price slumped by 0.09% to $1.473.19 a troy ounce due to a rebound in the US dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
10:00 NZD RBNZ Rate Statement
11:00 NZD RBNZ Press Conference
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 10:00 | NZD – RBNZ Interest Rate Decision | 1.50% | 1.25% | – |
| 22:00 | CAD – Ivey PMI (Jul) | 52.4 | 53.0 | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | -8.496M | -2.845M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retrace from its higher levels. MACD which illustrate increasing downward momentum suggests its price to be traded lower, towards the direction of 96.95.
Resistance level: 97.80, 99.00
Support level: 96.95, 96.00
GBPUSD, H1: GBPUSD was traded higher following prior rebound from its lower level. MACD which begins to form a bullish signal suggests the pair to be traded higher in short-term, towards the direction of 1.2190.
Resistance level: 1.2190, 1.2220
Support level: 1.2135, 1.2090
EURUSD, H1: EURUSD was traded higher following prior rebound from the upward trendline. MACD which begins to form a bullish signal suggests the pair to be traded higher, towards the direction of 1.1220.
Resistance level: 1.1220, 1.1265
Support level: 1.1170, 1.1115
USDJPY, H4: USDJPY was traded lower following prior retrace from the resistance of 104.50. MACD which illustrate diminished upward momentum suggests the pair to be traded lower, towards the direction of 105.60.
Resistance level: 106.50, 107.25
Support level: 105.60, 104.85
AUDUSD, H4: AUDUSD was traded lower while currently testing near 0.6760. MACD which illustrate increasing upward momentum suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 0.6830, 0.6925
Support level: 0.6760, 0.6675
NZDUSD, H4: NZDUSD was traded higher following a rebound near 0.6520. MACD which illustrate increasing upward momentum suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 0.6590, 0.6655
Support level: 0.6520, 0.6480
USDCAD, H4: USDCAD was traded higher while currently testing at the top level of the channel. MACD which illustrate bullish signal suggests the pair to extend its gains after a successful breakout from the top.
Resistance level: 1.3290, 1.3315
Support level: 1.3255, 1.3220
USDCHF, H1: USDCHF was traded lower while currently testing at the support of 0.9745. MACD which begins to form a bearish signal suggests the pair to extend its losses after closing below 0.9745.
Resistance level: 0.9820, 0.9890
Support level: 0.9745, 0.9700
CrudeOIL, H4: Crude oil price extended its losses after closing below the support of 53.75. MACD which illustrate bearish signal suggests its price to advance further down, towards the direction of 52.70.
Resistance level: 53.75, 55.00
Support level: 52.70, 50.60
GOLD_, H1: Gold price was traded higher following prior closure above 1471.50. MACD which illustrate bullish signal suggests its price to extend its gains, towards the direction of 1483.50.
Resistance level: 1483.50, 1500.00
Support level: 1471.50, 1456.50