Home Daily Analysis Forex Market Overview Daily FX Brief, Sep 04 – Quick Trade Setups In Forex, Eyes...

Daily FX Brief, Sep 04 – Quick Trade Setups In Forex, Eyes on BOC Policy,


The U.S. Dollar Index challenged a day-high of 99.37 before closing flat on the day at 98.94, as U.S. manufacturing data missed expectations. Later today, the Federal Reserve will release its latest economic report, the Beige Book.

The British pound marked a day-low of $1.1959 before bouncing back to close at $1.2091, up 0.2%. The U.K. House of Commons voted in favour of a bill seeking to delay the Brexit. In response, Prime Minister Boris Johnson said he would table a motion for an early general election. On the other hand, the Markit U.K. Construction PMI dropped to 45.0 in August (vs. 46.5 expected) from 45.3 in July.

The euro seldom changed at $1.0973 after a six-day decline. European Central Bank policymaker Madis Muller said there is no strong case for reactivating quantitative easing now.

Canadian Rate Decision – 14:00 (GMT)

Early in the year, the Bank of Canada stood out by holding up its hawkish bias but has lately released its plans to raise interest rates. Nonetheless, recent growth numbers – at 3.7% annualised in the second quarter – give no basis for the BOC to join its peers by signalling rate cuts or any other type of incentive. Governor Stephen Poloz and his colleagues seem set to leave rates unchanged at 1.75% and may express concern about the global economy – yet without hurrying to any action.

Economic Events to Watch Today

Let’s took at these fundamentals…

AUD/USD – Daily Analysis

The AUD/USD currency pair representing the gains on the day high of 0.6778 due to Australian 2nd-quarter gross domestic product came according to expectations.

The GDP data delivered at 01:30 represented the Australian economy expanded by 0.5% points quarter-on-quarter during the April to June session, taking the yearly speed of growth to 1.4%, as expected.

The economy had expanded by 0.4% quarter-on-quarter and 1.8% year-on-year in the first three months of 2019.

The GDP comes a day after the Reserve Bank of Australia maintained rates fixed at 1%, but left the possibilities open for further rate cuts in the future.

As of writing, the AUD/USD currency pair is presently trading at 0.6778 and could increase more if equities will increase further. That is what suggests the 0.30% increase in futures on the S&P 500. Also, an unexpected good China services PMI, due in a few minutes, may leave the bullish pressures near the AUD.

Daily Support and Resistance

S3 0.6594

S2 0.6666

S1 0.6711

Pivot Point 0.6738

R1 0.6783

R2 0.681

R3 0.6881

AUD/USD – Trading Tips

The AUD/USD pair is moving at a five-day high ahead of the Q2 GDP release, with a positive technical stance in its 4 hours chart, trading above its 20 and 100 SMA for the first time in the last six sessions. The moving averages continue directionless, while the 200 SMA holds going lower, offering a dynamic resistance at 0.6820. 

Technical indicators in the specified chart hold within certain levels although now dropping their bullish strength. The market is previously aware that GDP could foil, which means that the pair could post a massive reflection on a positive surprise than to a negative one.

Gold – Daily Analysis

Yellow metal prices still nearly flat due to continuing demand for safe-haven assets. Gold Futures for December delivery, traded on the Comex division of the New York Mercantile Exchange, were down 0.19%, at $1,552.75 per ounce.

Despite a small difficulty this morning, gold prices still traded higher than ever, and it has already been high up 20% this year. The ten-year treasury yield hit the weakest level since July 2016, and the continuing trade tussle between the United States and China has a reason behind the tensions over an international slowdown.

The declined U.S. economic data also giving support to gold prices to keep higher. The UnitedStates Inistute of Supply management reported that its purchasing managers index for August dropped to 49 versus 51.2 during July, which further fired the interest in the gold.

At the trade US-China trade front, have not found any progress into a trade war. Such as, the tariffs entered their 3rd day, the United States and China did not give any hint of confirming the next trade talks. Further tariffs on both sides will take effect in December. 

Daily Support and Resistance

S3 1487.35

S2 1513.75

S1 1530.44

Pivot Point 1540.15

R1 1556.84

R2 1566.56

R3 1592.96

Gold – Trading Tips

Precious metal gold was trading with the neutral sentiment, exhibiting choppy sessions within a wide range of 1517-1533. The range got violated on the upper side, and now gold 1533 is likely to work as a support. While next resistance stays around 1549. It looks like gold is completing Fibonacci retracement and it may drop until 1539 or 1534 before exhibiting another bullish wave. Consider staying bearish below 1540.15 and bullish above 1532. 

All the best!  




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