US rate hike fever continues to be the main theme of the markets. The USD extended gain as US economic data underpins rate-hike expectations. ADP NFP report released yesterday read 177K, beating the expectation 174K with July data revised from 179K to 194K. The better-than-expected precursor report hinted a strong labour market and added fuel to USD bulls, prior to the official NFP on Friday. However, the historical data told a different story that the August NFP numbers are usually lower than expected. The time frame covering for August NFP data is usually the time for holidays, which will have temporary impact on data.
The AUD/USD closed the day flat just above the 0.7500 level. The repricing of the FED rate hike probabilities causing downwards pressure on the exchange rate. The decline in commodities price and stocks also weighed on the Aussie. This Friday’s NFP will move the USD leg, the Aussie side will be driven by the Chinese manufacturing PMI, Australian retail sales and private capital expenditure published during Asian session today.
WTI crude oil maintained its bearish bias and slumped to multi-day lows $44.54 per barrel after the oil inventories increases by nearly 2.3 million barrels last week, according to the EIA report.
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9/1/2016 12:35 AM |
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Trend daily chart  (=) |
Trend weekly chart  (=) |
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AUD/USD Intraday: the downside prevails. |
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Pivot: 0.7540
Our preference: short positions below 0.7540 with targets @ 0.7480 & 0.7450 in extension.
Alternative scenario: above 0.7540 look for further upside with 0.7580 & 0.7600 as targets.
Comment: as long as 0.7540 is resistance, look for choppy price action with a bearish bias.
Supports and resistances:
0.7600 ***
0.7580 ***
0.7540 ***
0.7519 Last
0.7480 ***
0.7450 **
0.7420 *** |
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