Market Analysis: Busy day with many Economic Events in US, UK and Australia

September 5, 2017

Dollar Broadly Lower On North Korea Crisis.

Market Analysis: Busy day with many Economic Events in US, UK and Australia

FXPrimus has summarized the important indicators of the day.

Today’s Important Indicators

A busy Tuesday starting with the announcement of Australia’s Cash Rate at 04:30 GMT. The session will continue with the UK Services PMI and U.S Factory Orders at 08:30 and 14:00 respectively.

Meanwhile, at 09:10 GMT RBA’s Lowe will speak at the Reserve Bank Board Dinner and FOMC Brainard will speak at the Economic Club of New York about the economic outlook and monetary policy at 12:00 GMT.

FOMC’s Kashkari and Kaplan will also appear at the University of Minnesota and Dallas’s FRB to make their own speeches.

Today’s Forecast for Important Trading Indicators

Market Movers

  • USDJPYYen remains strong against Dollar as North Korea jitters have not yet subsided. Dollar-Yen moved below 103.30 in quiet trade as the Japanese currency’s demand increased after a second hydrogen bomb launch from North Korea was announced. As long as the crisis continues, Yen could be expected to gain more momentum as risk appetite wears off. Many speeches from FOMC members today will play in.
  • AUDUSDAussie holds gains on RBA’s unchanged Cash Rate, Lowe’s speech in focus. The Australian Dollar maintained its bullishness early in Asia as RBA decided to leave the interest rates unchanged to a record low of 1.50%. Despite U.S Labor Day and U.S banks being closed, Dollar remained broadly lower during Monday. The Australian counterpart upmove was supported by earlier upbeat Caixin services PMI data. The pair has retraced the 61.80% of the move during the release and currently trades above 0.7960.

AUDUSD 30 MINUTE CHART

  • EURUSDEuro gains on North Korea jitters, remains within a tight range on quiet trade. Euro moved higher after North Korea’s missile test of a hydrogen bomb was confirmed in the news as Dollar weakened. The pair topped at the 38.20% Fibonacci around 1.1915 and bottomed at the 23.60% Fibonacci, near 1.1880. Euro-Dollar is still in consolidation and a break of the two levels mentioned above could be expected today, as data from U.S as well as speeches are assumed to create some volatility.

EURUSD 1-HOUR CHART

  • USOILOil slightly higher on quiet trade as refineries come back online with a slow pace. Crude Oil appreciated some 0.40% following a quiet Monday as U.S Gulf Coast refinery activity resumed overnight. While Oil remains mixed on North Korea and Hurricane aftermath, analysts believe the price of the black gold is expected to move to higher levels above $50 per barrel. Meanwhile insolvencies in Canada’s Oil-producing regions increased, however, Canada’s biggest producer returned from recession.
  • XAUUSDGold hits a Year high as fears over H-Bomb test increase, however on a standby mode. Gold price moved $10 higher on Monday on new geopolitical tensions around the North Korean Peninsula. Since then, price has remained in a tight range and moved marginally higher this morning after word came out that a second H-Bomb test will be soon carried out by Kim Jong Un. As long as tensions remain, or, not ease-off, Gold prices are not expected to retreat.
  • In US Indexes, S&P 500 closed 0.20% higher while DJ appreciated 0.18%.
  • In Europe, UK 100 moved 0.11% higher while DE 30 raised 0.72%.
  • In Asia, ASX 200 moved marginally lower 0.04%, Nikkei plummeted 0.67% and Hang Seng moved slightly higher, +0.07%.
  • In stocks, BoA surged 0.84% while Alphabet saw an increase of 0.34%.

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