19 September 2017 Daily Analysis
Dollar recoup its losses, Pound Sterling remains sluggish.
Dollar index was last traded at 91.81 after its gains of 0.17%. Dollar grew stronger against a basket of major currencies amid a sharp increase in U.S. treasury yields, following positive market sentiment toward reaffirmation of the Federal Reserve (Fed) to increase interest rates at least once this year. Meanwhile, the central bank is also expected by investors to announce that it will start unwinding its $4.5tn bond portfolio. In addition, the Fed’s Summary of Economic Projections and dot-plot are expected to gain investors’ attention for further assessing if the decreasing pace of inflation has influenced the central bank’s prospect toward interest rates in longer term. On the other hand, GBP/USD was traded at 1.3500 after experiencing a drop of 0.5%, when Bank of England (BoE) Governor Mark Carney emphasized that an expectation is made that any rate hikes would be gradual and limited. Furthermore, a more hawkish tone from Carney is required to fuel another spike to the Pound Sterling which is currently in overbought situation.
In the commodity market, crude oil price remained stable at $50.00 per barrel with minor gain of 0.2%, due to increase in demand from the restart of many refineries previously destroyed by Hurricane Harvey, but capped by increase in U.S. crude supply. Otherwise, gold prices fell by 1.03% to 1306.90 per troy ounce following a strong gains in both the greenback and treasury yields.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
09:30 AUD RBA Meeting Minutes
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 06:00 | NZD – Westpac Consumer Sentiment (Q3) | 113.4 | – | 112.4 |
| 17:00 | EUR – German ZEQ Economic Sentiment (Sep) | 10.0 | 12.5 | – |
| 20:30 | USD – Building Permits (Aug) | 1.230M | 1.220M | – |
| 20:30 | USD – Housing Starts (MoM) (Aug) | 1.155M | 1.175M | – |
| 20:30 | CAD – Manufacturing Sales (MoM) (Jul) | -1.8% | -1.8% | – |
| 04:30 | USD – API Weekly Crude Oil Stock | 6.181M |
GBPUSD
GBPUSD, Daily: GBPUSD was traded lower prior its retracement from resistance level at 1.3595. Downward slope of MACD histogram suggests the pair to trade lower as a technical correction toward support level at 1.3395.
Resistance level: 1.3595, 1.4185
Support level: 1.3395, 1.3215
EURUSD
EURUSD, H4: EURUSD was traded lower prior its retracement from resistance level at 1.1985. However, upward slope of MACD signal line suggests the pair to continue its momentum to trade higher, testing again the said resistance level.
Resistance level: 1.1985, 1.2070
Support level: 1.1820, 1.1715
USDJPY
USDJPY, H1: USDJPY was traded lower prior its retracement from resistance level at 111.60. Downward slope of MACD histogram suggests the pair to further its losses toward the support level at 110.80.
Resistance level: 111.60, 112.80
Support level: 110.80, 109.95
CrudeOIL
CrudeOIL, Daily: Price of crude oil was traded higher prior its failure to break below support level at 50.20. Upward slope of MACD signal line suggests crude oil price to further its gains toward the resistance level at 52.00.
Resistance level: 52.00, 55.00
Support level: 50.20, 48.70
GOLD
GOLD_, Daily: Gold price was traded lower after breaking below support level at 1321.35. Downward slope of MACD histogram suggests gold price to further its losses toward the next support level at 1299.05.
Resistance level: 1321.35, 1334.85
Support level: 1299.05, 1281.05