US Holiday Keeps FX Markets Contained
CURRENCY TRADING SUMMARY – 7th September (00:30 GMT)
Written by Anthony Darvall
U.S. Dollar Trading (USD) most pairs were range bound as US was way for Labor Day Holiday. The USD remained near post Nonfarm lows though as Asian and European stocks rallied. Looking ahead, August Employment Trend previously 97.
The Euro (EUR) the market stalled above 1.2900 in Europe buoyed by strong stocks before profit taking inspired a pull back. September Sentix Index slipped 7.6 vs. 8.5 previously. Some focus on European Banking capital concerns could weigh this week. EUR/USD traded with a low of 1.2798 and a high of 1.2920 before closing at 1.2810. Looking ahead, July German Industrial Orders are forecast 0.5% vs. 3.2%.
The Japanese Yen (JPY) kept inside a tight range as the Crosses dragged the USD/JPY higher before the major tested Y84 in the European session. Overall the USDJPY traded with a low of 84.04 and a high of 84.50 before closing the day around 84.20 in the New York session. Looking ahead, BOJ Rate Announcement widely expected to be held at 0.1%.
The Sterling (GBP) was the weakest currency in the market pushing down below 1.5400 in the European session on weak crosses as EUR/GBP pushed higher. Overall the GBP/USD traded with a low of 1.5345 and a high of 1.5492 before closing the day at 1.5395 in the New York session. Update August BRC Retail Sales at 1% vs. 0.5%.
The Australian Dollar (AUD) held close to the 0.9180 resistance all day on solid risk appetite and hopes that the political deadlock was going to solved. The RBA decision although widely expected to remain at 4.5% attention will be on the accompanying statement. Overall the AUD/USD traded with a low of 0.9040 and a high of 0.9183 before closing the US session at 0.9160. Looking ahead, RBA Decision forecat to remain at 4.5%.
Oil & Gold (XAU) with little catalyst the market stay in a $4 range next to the $1250 level. Overall trading with a low of USD$1247 and high of USD $1251 before ending the New York session at USD$1250 an ounce. Oil fell back as seller’s reemerged. WTI Oil Closed -$0.52 at $74.10 a barrel.
TECHNICAL COMMENTARY
|
Currency |
Sup 2 |
Sup 1 |
Spot |
Res 1 |
Res 2 |
|
EUR/USD |
1.2434 |
1.2588 |
1.2815 |
1.2933 |
1.3000 |
|
USD/JPY |
81.85 |
83.60 |
84.20 |
85.23 |
86.38 |
|
GBP/USD |
1.5125 |
1.5324 |
1.5380 |
1.5492 |
1.5713 |
|
AUD/USD |
0.8771 |
0.9055 |
0.9160 |
0.9222 |
0.9389 |
|
XAU/USD |
1210.00 |
1232 |
1249 |
1265 |
1300.00 |
|
OIL/USD |
70.00 |
72.50 |
74.10 |
75.00 |
76.00 |
Euro – 1.2815
Initial support at 1.2588 (Aug 24 low) followed by 1.2434 (61.8% retrace of 1.1877-1.3334). Initial resistance is now located at 1.2933 (Aug 12 low) followed by 1.3000 (Big figure Resistance)
Yen – 84.20
Initial support is located at 83.60 (August 24 low) followed by 81.85 (May 1995 low). Initial resistance is now at 85.23 (Sept 3 high) followed by 86.36 (Aug 13 high).
Pound – 1.5380
Initial support at 1.5324 (38.2% retrace of 1.4231-1.5999) followed by 1.5125 (July 21 low). Initial resistance is now at 1.5492 (Sept 1 high) followed by 1.5713 (Aug 12 high).
Australian Dollar – 0.9160
Initial support at 0.9055 (Sept 2 low) followed by the 0.8771 (Aug 25 low). Initial resistance is now at 0.9222 (Aug 6 high) followed by 0.9389 (Apr 12 high).
Gold – 1249
Initial support at 1232 (Aug 31 low) followed by 1210 (Aug 24 low). Initial resistance is now at 1265 (June 21 high) followed by 1300 (round number).
Oil – 74.10
Initial support at 72.50 (Intraday Support) followed by 71.00 (Intraday Support). Initial resistance is now at 75.00 (Intraday Resistance) followed by 76.00 (Intraday Resistance).
