05 September 2018 Daily Analysis
Greenback weakens despite strong PMI data.
The dollar was trading lower by 0.08% at 95.22 at early Asian trading session after hitting a two-week high after the releasement of US Institute of Supply Management Manufacturing PMI data where the actual data of 61.3 hit a 14-year high, exceeding the forecasted data of 57.6. A higher reading of the PMI indicates the expansion in manufacturing of US which represents 12% of total economy which has since boosted the confidence of investors towards the greenback. Besides that, the fall in dollar was also due to increasing global tension caused by the trade conflict between the US and China where President Donald Trump is planning to impose additional tariffs on $200 billion of China imports as soon as Thursday this week which has since kept the investors worry. In other news, the pound was traded 0.11% higher at 1.2866 as of writing despite the weak economic data of UK PMI where it highlighted the growing weakness in the construction sector with an actual reading of 52.9 which is much lower than the forecasted reading of 55. Despite the poor performance, UK has since performed better with the weakening of the dollar supporting its rebound.
As for the commodities market, crude oil price edged up by 0.11% to $69.42 per barrel after tumbling down from a one-and-half month high since July as the anticipated tropical storm that will affect the US Gulf coast production has less impact than expected. Besides that, gold price also increased by 0.24% to $1194.10 per troy ounce as the dollar weakens.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
20:15 CAD BoC Interest Rate Statement
Todays’ Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16.30 | GBP – Service PMI (Aug) | 54.4 | 54.4 | – |
| 22.00 | CAD – BoC Interest Rate Decision | 1.50% | 1.50% | – |
GBPUSD
GBPUSD, H1: GBPUSD was traded higher while currently testing the resistance level 1.2870. Recent price action and MACD which illustrate bullish momentum suggest that the pair may extend its gains once it breakout above the resistance level 1.2870.
Resistance level: 1.2870, 1.2910
Support level: 1.2840, 1.2790
EURUSD
EURUSD, H1: EURUSD was traded higher following prior breakout above the previous resistance level 1.1580. Recent price movement and MACD which signal a persistent bullish momentum suggest the pair to extend its gains towards the resistance level 1.6230.
Resistance level: 1.6230, 1.1650
Support level: 1.1580, 1.1530
USDJPY
USDJPY, H1: USDJPY was traded lower following prior retracement from the resistance level 111.60. MACD which shows the starting of bearish momentum and the formation of a death cross suggest the pair to extend its retracement towards the support level 111.45.
Resistance level: 111.60, 111.70
Support level 111.45, 111.20
CrudeOIL
CrudeOIL, H1: Crude oil price was recently traded lower following prior breakout below the support level 69.80. Recent price action and MACD which illustrate a persistent bearish momentum suggest the commodity to extend its losses towards the support level 69.10
Resistance level: 69.80, 70.30
Support level: 69.10, 68.35
GOLD
GOLD, H1: Gold price was traded higher following prior rebound from the support level 1191.10. Recent price movement and MACD which illustrate bullish momentum and the formation of a golden cross suggest the commodity to extend its rebound towards the resistance level 1196.00.
Resistance level: 1196.00, 1198.95
Support level: 1191.10, 1186.80