03 September 2019 Afternoon Session Analysis
Greenback remains high despite new tariffs.
Dollar index continues to climb against its basket of six major currency pair as investors remain positive on trade developments. On Sunday, U.S. have slapped 15% tariffs on a variety of Chinese goods while China also imposed new duties on U.S. crude oil. Despite the latest escalation, market remain hopeful of a breakthrough between two economic powerhouses as U.S. President Donald Trump has said the two countries will hold talks in September. At the same time, investors continue to focus on upcoming data to gauge further direction for the greenback. Dollar index rose 0.36% to 99.17 at the time of writing. Meanwhile, AUD/USD rose 0.02% to 0.6712 as of writing amid interest rate decision. According to data, the Royal Bank of Australia (RBA) have left it cash rate unchanged at 1.00% as expected by the market and offered positive outlook on employment and economic growth expectation. The outlook have recovered some market confidence thus providing some boost for the Aussie.
As for commodities market, crude oil price rebound 0.36% to $99.27 per barrel as of writing following mixed sentiment from U.S-Sino trade war and soft South Korean data. As U.S and China recently imposed new tariff on each other, market fear the ongoing dispute could hurt the demand for the commodity. However, there are also positive news provide boost for the commodity where OPEC, Russia and other non-members, known as OPEC+ have agreed in December to reduce supply by 1.2 million bpd from Jan. 1 this year. Investors now awaiting stock data for further direction. Lastly, gold price fell 0.35% to $1523.88 a troy ounce following strong dollar and global risk.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
05:00 (4th) USD FOMC Member Rosengren Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16:30 | GBP – Construction PMI (Aug) | 45.3 | 45.9 | – |
| 22:00 | USD – ISM Manufacturing PMI (Aug) | 51.2 | 51.1 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior breakout above the previous resistance level 99.10. MACD which illustrate persistent bullish momentum signal suggest the dollar to extend its gains towards the resistance level 99.60.
Resistance level: 99.60, 99.95
Support level: 99.10, 98.65
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level 1.2015. MACD which illustrate persistent bearish signal suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 1.2090, 1.2170
Support level: 1.2015, 1.1915
EURUSD, H4: EURUSD was traded lower while currently testing the support level 1.0930. However, MACD which illustrate diminishing bearish momentum suggest the pair to be traded higher in short term as a technical correction towards the resistance level 1.0980.
Resistance level: 1.0980, 1.1030
Support level: 1.0930, 1.0860
USDJPY, H4: USDJPY remain traded in a sideway channel. Due to lack of momentum from MACD, it is suggested to wait until further signal appear before entering the market.
Resistance level: 106.75, 107.75
Support level: 105.15, 103.60
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support level 0.6695. MACD which illustrate diminishing bearish momentum suggest the pair to extend its rebound towards the resistance level 0.6740.
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. MACD which illustrate bearish momentum signal suggest the pair to extend its losses after it breaks below the support level.
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. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to experience a technical correction in short term towards the support level 1.3280.
Resistance level: 1.3335, 1.3415
Support level: 1.3280, 1.3225
USDCHF, H4: USDCHF was traded higher following prior breakout above the previous resistance level 0.9905. However, MACD which illustrate diminishing bullish momentum signal with the starting formation of death cross suggest the pair to be traded lower in short term as a technical correction.
Resistance level: 0.9950, 1.0005
Support level: 0.9905, 0.9865
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