07 November 2017 Daily Analysis
Dollar remained supported while RBA in focus.
Dollar index pared its losses against a basket of major currencies during Asia trading hours, rose 0.04% to 94.62 as of writing ahead of Reserve Bank of Australia (RBA)’s interest rate decision. All in all, RBA is set to remain neutral with their latest interest rate decision at record low of 1.50% while some investors are expecting them to call for a rate cut following the recent sluggishness in retail sales and inflation data. Thus, market participants will lay their eyes on the latest rate statement to gauge their prospect towards future economic growth and monetary policy. On the other hand, Greenback gave up its gains against safe-haven currencies overnight amid political uncertainty in the Middle East following an anti-corruption drive led by Saudi Crown Prince Mohammed bin Salman which resulted in a series of arrests of prominent Saudi Arabians. In addition, confirmation of William Dudley – president of Federal Reserve Bank of New York to retire earlier in mid-2018 rather than when his term ends in January 2019 has further weighed on the Greenback. However, losses of the Greenback was limited as data showed that traders trimmed their bearish bets on the dollar since last week.
In the commodities market, crude oil price rose 0.19% to $57.24 per barrel with turmoil in the Middle East while investors are waiting for the American Petroleum Institute (API) to release its weekly estimates on crude and refined product stocks in the U.S. Likewise, gold price surged higher by 1.02% to $1279.00 a troy ounce, fuelled by political uncertainty in the Middle East.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
11:30 AUD RBA Rate Statement
17:00 EUR ECB President Draghi Speaks
01:55 CAD BoC Gov Poloz Speaks
03:30 USD Fed Chair Yellen Speaks
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 11:30 | AUD – RBA Interest Rate Decision (Nov) | 1.50% | 1.50% | – |
| 15:00 | EUR – German Industrial Production (MoM) (Sep) | 2.6% | -0.8% | – |
| 16:30 | GBP – Halifax House Price Index (MoM) (Oct) | 0.8% | 0.3% | – |
| 23:00 | USD – JOLTs Job Openings | 6.082M | 5.980M | – |
| 05:30 | CrudeOIL – API Weekly Crude Oil Stock | -5.087M | – | – |
GBPUSD
GBPUSD, H4: GBPUSD was traded higher after breaking resistance level at 1.3105. The pair is currently testing resistance by 200-MA line. Successful closure above the 200-MA line would further indicate the pair to extend its gains toward the next resistance level at 1.3220.
Resistance level: 1.3220, 1.3315
Support level: 1.3105, 1.2985
EURUSD
EURUSD, H4: EURUSD was traded higher prior its rebound from support level at 1.1580. Formation of bullish engulfing candlestick pattern and positive divergence by MACD histogram suggest the pair to extend higher toward resistance level at 1.1670.
Resistance level: 1.1670, 1.1750
Support level: 1.1580, 1.1480
USDJPY
USDJPY, H4: USDJPY was traded within ascending triangle and currently traded lower after its failure to break resistance level at 114.40. It is suggested for the pair to extend losses toward the support level at 112.90 if breakout of the trend line is successful.
Resistance level: 114.40, 115.90
Support level: 112.90, 111.50
CrudeOIL
Crude OIL, Daily: Crude oil price was traded higher after breaking resistance level at 54.75. Arrangement of bullish candlesticks and upward slope of MACD signal line suggest the commodity price to extend higher toward the next resistance level at 58.10.
Resistance level: 58.10, 62.55
Support level: 54.75, 48.60
GOLD
GOLD_, H1: Gold price was traded lower prior retracement and breaking below support level at 1280.00. Downward slope of MACD histogram suggests the pair to undergo short-term technical correction toward the support level at 1277.00.
Resistance level: 1280.00, 1282.75
Support level: 1277.00, 1273.15