17 October 2017 Daily Analysis
Greenback’s bull on fire, Aussie fell after RBA meetings.
Dollar index was traded higher against a trade-weighted basket of major currencies, quoted up 0.24% to 93.14 on the back of upbeat manufacturing data. The Empire State manufacturing index rose to 30.2 in October, after reaching 24.4 last month. However, gains of the Greenback remained capped despite the positive outlook on manufacturing data due to investors’ concerns over disinflation following Friday’s inflation report. Beforehand, Fed Chair Janet Yellen has made reaffirmation that the Federal Reserve shall commit to increase its benchmark rates in December this year. She mentioned that U.S. economy remained resilient and that the positive labor market data suggested Fed to increase interest rates gradually. On the other hand, AUD/USD fell to its session low of 0.7838 following Reserve Bank of Australia (RBA) meeting minutes that shows policy makers see no reason to follow global rate hikes while reiterating that the change in interest rate should depend on local economic conditions and rate hikes abroad did not have much ”mechanical” implication for Australian rates.
In the commodity market, crude oil price settled lower by 0.21% to $51.76 per barrel after United States issued a permit to expand Enbridge cross-border oil pipeline, allowing the company to nearly double crude oil supply capacity to ship from 450,000 barrels per day (bpd) to 890,000 bpd. Likewise, gold price sheds 0.52% to $1293.11 a troy ounce following a surge in the Greenback amid optimistic manufacturing data and market sentiment toward Fed to increase interest rates for the third time in December.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
08:30 AUD RBA Meeting Minutes
18:15 GBP BoE Gov Carney Speaks
01:00 USD FOMC Member Harker Speaks
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 05:45 | NZD – CPI (QoQ) (Q3) | 0.0% | 0.4% | 0.5% |
| 16:30 | GBP – CPI (YoY) (Sep) | 2.9% | 3.0% | – |
| 17:00 | EUR – German ZEW Economic Sentiment (Oct) | 31.7 | 34.2 | – |
| 18:00 | EUR – CPI (YoY) (Sep) | 1.5% | 1.5% | – |
| 20:30 | USD – Import Price Index (MoM) (Sep) | 0.6% | 0.6% | – |
| 21:45 | USD – Industrial Production (MoM) (Sep) | -0.9% | 0.2% | – |
| 04:30 | CrudeOIL – API Weekly Crude Oil Stock | 3.097M | – | – |
GBPUSD
GBPUSD, H1: GBPUSD was traded higher prior its rebound from support level at 1.3225. The pair is currently traded within descending triangle suggesting a breakout is needed to determine its price movement in the nearer term.
Resistance level: 1.3280, 1.3330
Support level: 1.3225, 1.3175
EURUSD
EURUSD, H4: EURUSD was traded lower prior its retracement from resistance by 200-MA line. The pair is currently testing the support level at 1.1780. Successful closure below the said support level would suggest the pair to continue its losses toward the next support level at 1.1740.
Resistance level: 1.1880, 1.1990
Support level: 1.1780, 1.1740
USDJPY
USDJPY, H4: USDJPY was traded higher prior its rebound from support level at 111.65. Formation of bullish engulfing candlestick and golden-cross by MACD signal line suggest the pair to trade higher toward the resistance level at 112.35.
Resistance level: 112.35, 113.00
Support level: 111.65, 108.90
CrudeOIL
CrudeOIL, H4: Crude oil price was traded lower prior its retracement from resistance level at 52.40. Formation of bearish engulfing candlestick and negative divergence as shown by MACD histogram suggest crude oil price to extend its losses toward the support level at 51.75.
Resistance level: 52.40, 53.00
Support level: 51.75, 51.35
GOLD
GOLD_, H1: Gold price was traded higher prior its rebound from support level at 1290.20. Formation of pin bar and upward slope of MACD histogram suggest gold price to undergo short-term technical correction to trade higher toward the resistance level at 1297.60.
Resistance level: 1297.60, 1300.70
Support level: 1290.20, 1283.45