02 September 2019 Afternoon Session Analysis
Dollar index slips as new tariff kicks in.
Dollar index have pared some of its gains against a basket of six major rival pairs as the new tariff between both U.S and China have taken effect, marking the next step in the ongoing trade effect. The latest tariff of 15% on Chinese imports such as footwear, smart watches and flat-panel televisions worth $110 billion have officially took effect while retaliatory tariffs from China also kicked in over the weekend. Despite this, market remains hopeful of a trade deal between two economic powerhouses as U.S President Donald Trump stated that both sides will still meet for upcoming talk this month. With U.S market closes for Labor Day today, market are now currently awaiting further news for further sentiment. The greenback fell 0.10% to 98.63 at the time of writing. Meanwhile, AUD/USD ticks up 0.06% to 0.6730 at the time of writing following upbeat China data. According to Caixin, China’s manufacturing activity have surprisingly expanded to the highest level since March with the reading of 50.4 which also surpassed market expectation of 49.8. As China was the largest trading partner of Australia, the data also affect positively on the Aussie dollar.
As for commodities market, crude oil price remain pressured and fell 0.16% to $55.11 per barrel at the time of writing amid U.S and China tariff. As the new tariff kicks in, investors are now concerned about the threat of global demand, thus dragging the price further down to low level. On the other hand, gold price jumped 0.36% to $1526.01 a troy ounce following the increase of risk-off sentiment.
Today’s Holiday Market Close
Time Market Event
All Day CAD Labor Day
All Day USD Labor Day
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15.55 | EUR – German Manufacturing PMI (Aug) | 43.6 | 43.6 | – |
| 16.30 | GBP – Manufacturing PMI (Aug) | 48.4 | 48.0 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior breakout above the previous resistance level at 98.65. However, MACD which illustrate diminishing bullish momentum suggest the greenback to experience a technical correction in short term towards back the support level 98.65.
Resistance level: 99.10, 99.60
Support level: 98.65, 98.20
GBPUSD, H4: GBPUSD was traded lower following prior breakout below the previous support level at 1.2170. However, MACD which illustrate diminishing bearish momentum suggest the pair to experience a short term technical correction towards the resistance level 1.2170.
Resistance level: 1.2170, 1.2295
Support level: 1.2090, 1.2015
EURUSD, H4: EURUSD was traded lower while currently testing the support level 1.0980. However, MACD which illustrate diminishing bearish momentum suggest the pair to experience a technical correction towards the resistance level 1.1030.
Resistance level: 1.1030, 1.1105
Support level: 1.0980, 1.0930
USDJPY, H4: USDJPY remain traded in sideway channel following recent retracement from the resistance level 108.75. MACD which illustrate bearish bias signal with the formation of death cross suggest the pair to extend its losses towards the support level 105.15.
Resistance level: 106.75, 107.75
Support level: 105.15, 103.60
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the resistance level 0.6740. MACD which illustrate bearish bias signal suggest the pair to extend its losses towards the support level 0.6695.
Resistance level: 0.6740, 0.6780
Support level: 0.6695, 0.6650
NZDUSD, H4: NZDUSD was traded lower while currently testing near the support level 0.6275. However, MACD which illustrate diminishing bearish momentum suggest the pair to experience a technical correction in short term towards the resistance level 0.6345.
Resistance level: 0.6345, 0.6400
Support level: 0.6275, 0.6210
USDCAD, H4: USDCAD was traded higher while currently testing near the resistance level 1.3335. MACD which illustrate bullish momentum signal suggest the pair to extend its gains after it breaks above the resistance level.
Resistance level: 1.3335, 1.3415
Support level: 1.3280, 1.3225
USDCHF, H4: USDCHF was traded higher while currently testing the resistance level 0.9905. However, MACD which illustrate diminishing bullish momentum suggest the pair to be traded lower as a short term technical correction towards the support level 0.9865.
Resistance level: 0.9905, 0.9950
Support level: 0.9865, 0.9820
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level 54.50. MACD which illustrate diminishing bearish momentum signal suggest the commodity to extend its rebound towards the resistance level 55.45.
Resistance level: 55.45, 56.65
Support level: 54.50, 53.60
GOLD_, H4: Gold price was traded lower while currently testing near the support level 1519.00. However, MACD which illustrate diminishing bearish momentum suggest the commodity to be traded higher in short term as a technical correction towards the resistance level 1548.10.
Resistance level: 1548.10, 1588.40
Support level: 1519.00, 1488.85