9 August 2017 Daily Analysis
Greenback grasp its gains as North Korea prepare to strike.
Japanese yen appreciates further on Wednesday as tension on the Korean Peninsula escalates following prior enactment of new sanctions. North Korea stated that they are considering plans to launch a missile strike on the US Pacific territory of Guam and could be put into practice at any time under the command of their leader Kim Jong Un. Heightened risk in the market spur risk aversion among investors and boosting the demand of safe haven assets such as yen and gold. On the other hand, greenback held gains at 93.48 against six major peers following refreshed optimism catalyzed by US job openings data. According to the Labor Department, US job openings increased by 461,000 in June, adding up to a seasonally adjusted total of 6.2 million, its highest since December 2000. The bullish report reinforced last Friday’s NFP report which suggests stronger economic performance while increasing market’s prospect for another rate hike by year end.
In the commodities, crude oil price plunged 0.51% to $48.92 as the market shrugged off a bigger-than-expected draw in US inventories following doubts over OPEC’s ability to carry through their production cut agreement. Otherwise, gold price rose 0.82% to $1,266.68 as geopolitical tension between US and North Korea continues to intensify.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Event
Time Market Event
N/A
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 09:30 | CNY – CPI (MoM) (Jul) | -0.2% | 0.2% | 0.1% |
| 09:30 | CNY – PPI (YoY) (Jul) | 5.5% | 5.5% | 5.5% |
| 20:15 | CAD – Housing Starts (Jul) | 212.7K | 205.0K | – |
| 20:30 | USD – Nonfarm Productivity (QoQ) (Q2) | 0.0% | 0.7% | – |
| 20:30 | USD – Unit Labor Costs (QoQ) (Q2) | 2.2% | 1.2% | – |
| 20:30 | CAD – Building Permits (MoM) (Jun) | 8.9% | -2.0% | – |
| 22:30 | Crude Oil – Crude Oil Inventories | -1.527M | -2.720M | – |
GBPUSD
GBPUSD, H4: GBPUSD extended its losses following prior closure below the 50.0 Fibonacci level of 1.3030. Both MA lines which continues to expand downwards suggests GBPUSD to advance further down after closing below the support level of 1.2980.
Resistance level: 1.3030, 1.3080
Support level: 1.2980, 1.2905
EURUSD
EURUSD, H4: EURUSD was traded lower following prior retracement from the 20-MA line (red). MACD histogram which illustrates negative divergence suggests EURUSD to extend its losses after breaking the strong support level of 1.1720.
Resistance level: 1.1780, 1.1840, 1.1900
Support level: 1.1720, 1.1650
USDJPY
USDJPY, Daily: USDJPY was traded lower following prior retracement from the resistance level of 110.85. Recent closure below the support level of 110.10 suggest further downside bias to extend its losses towards the next target at 109.40.
Resistance level: 110.10, 110.85
Support level: 109.40, 108.80
CrudeOIL
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from the strong resistance level near 49.55. Recent closure below both MA line suggest further downside bias to extend its losses towards the target of support level at 48.80.
Resistance level: 49.55, 50.40
Support level: 48.80, 47.80
GOLD
GOLD_, H4: Gold price remains traded within a downward channel while currently testing at the top level. A successful breakout from this level would signal a change in trend direction to extend its upside thereafter. Otherwise, a retracement would suggest short-term downside bias and to be remained traded within the downward channel.
Resistance level: 1265.50, 1273.95
Support level: 1257.60, 1247.50