2 August 2017 Daily Analysis
Bears maneuvers kiwi, greenback steers for recovery.
Kiwis were held lower during Asian trading hours on Wednesday following a disappointing release of employment data for the second quarter. In New Zealand, employment change fell by 0.2% versus expected forecast for a gain of 0.7%. While overall unemployment rate persists at 4.8%, the participation rate was down to 70.00% as compared to previous reading of 70.60%. Likewise, pair of NZD/USD sheds 0.51% to fresh one-week low of $0.7431. On the other hand, greenback was held steady at 92.83 as investors digest overnight’s mixed performance of economic data. While Fed preferred PCE price index has given some support to the bulls, its personal consumption component failed to increase for the first time in seven months which signals a moderate pace of consumption growth in third quarter. Likewise, ISM Manufacturing PMI undershot expectations with only 56.3 versus forecast of 56.5.
As for commodities, crude oil price fell 0.73% to $48.80 after American Petroleum Institute reported a surprise swell of 1.8 million barrels in US crude inventories. Otherwise, gold price sheds 0.38% to $1,267.82 as the greenback stages its recovery during early Asian session.
Today’s Holiday Market Close
Time Market Event
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Today’s Highlight Events
Time Market Event
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Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 06:45 | NZD – Employment Change (QoQ) (Q2) | 1.2% | 0.7% | -0.2% |
| 09:30 | AUD – Building Approvals (MoM) (Jun) | -5.6% | 1.5% | 10.9% |
| 16:30 | GBP – Construction PMI (Jun) | 54.8 | 54.5 | – |
| 20:15 | USD – ADP Nonfarm Employment Change (Jul) | 158K | 185K | – |
| 22:30 | Crude Oil – Crude Oil Inventories | -7.208M | -2.957M | – |
GBPUSD
GBPUSD, H1: GBPUSD were traded lower following prior retracement from the 20-MA line (red) while closing below the key support level of 1.3200. MACD histogram which shows downward signal suggests GBPUSD to extend its losses towards the next target at 1.3170.
Resistance level: 1.3200, 1.3240
Support level: 1.3170, 1.3125
EURUSD
EURUSD, H4: EURUSD were traded lower following prior retracement from the resistance level of 1.1850. MACD which illustrates a reduction in upward momentum suggests EURUSD to be traded lower in short-term as technical correction towards the support level of 1.1775.
Resistance level: 1.1850, 1.1900
Support level: 1.1775, 1.1700
NZDUSD
NZDUSD, H4: NZDUSD were traded lower following prior closure below the strong support of 0.7465. Recent closure below the 60-MA line (green) suggests NZDUSD to extend its losses towards the next target of support level at 0.7400.
Resistance level: 0.7465, 0.7520
Support level: 0.7400, 0.7335
USDJPY
USDJPY, H4: USDJPY were traded higher following a rebound from the support level of 110.00 while currently testing near the 20-MA line (red). A successful closure above the line would suggest an extension of uptrend towards the next target at 111.00.
Resistance level: 111.00, 111.65
Support level: 110.00, 109.70
CrudeOIL
CrudeOIL, H4: Crude oil price extended its losses following prior retracement near the resistance level of 49.25. A successful closure below the support level of 48.45 would suggest crude oil price to advance further downwards.
Resistance level: 49.25, 50.40
Support level: 48.45, 47.20
GOLD
GOLD_, H1: Gold price extended its downtrend following prior retracement from the 20-MA line (red) while currently testing at the strong support level of 1265.60. A closure below this level would suggest gold price to move further downwards towards the next target at 1261.30.
Resistance level: 1270.00, 1273.95
Support level: 1265.60, 1261.30