Home Daily Analysis Forex Market Overview Daily FX Brief, Sept. 06 – Most Awaited NFP Figures Up Next,...

Daily FX Brief, Sept. 06 – Most Awaited NFP Figures Up Next, Brace for Trades!  

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The U.S. dollar stabilised on stronger-than-expected private jobs report and trade optimism. The ICE Dollar Index marked a day-low of 98.09 before bouncing back to close at 98.43, broadly unchanged from the prior session. Later today, the U.S. nonfarm payrolls report for August will be released (vs +160,000 jobs, jobless rate at 3.7% expected).

The euro challenged a day-high of $1.1084 before retreating to close at $1.1034, relatively unchanged on the day. Official data showed that German factory orders declined 2.7% on month in July (vs -1.4% expected).

Economic Events to Watch Today

Let’s took at these fundamentals… 


USD/JPY  – Daily Analysis

During the European session, the USD/JPY currency pair moved higher and broke above the 107 handle during the last hour. That was due to U.S. Dollar starting a recovery streak on US upbeat data.

As of writing, the USD/JPY currency pair was trading at its top-level during a week at 107.12, adding 0.68% on a daily basis.

During the early day, the data released by the Automatic Data Processing represented that the private sector job rate increased in the US by 195,000 during August against the expectation of 149,000 even though the official figures of the Markit Services PMI decreased by 50.7 from the earlier forecast of 50.9. In the meantime, the DXY is virtually stable on the day at 98.40.

On the other side, the ISM’s Non-manufacturing PMI increased by 56.4 during August from 53.7 in July to show a further increase in the sector’s economic activity. Besides this, ISM said that the non-manufacturing sector’s growth rate increase after 2-consecutive months.

Meanwhile, the respondents continue to worry about tariffs and geopolitical fears/uncertainty, whereas they are almost relaxed about business conditions.


    

Daily Support and Resistance

S3 105.28

S2 105.76

S1 106.05

Pivot Point 106.25

R1 106.54

R2 106.74

R3 107.22

USD/JPY– Trading Tips

Consider saying bullish above and bearish below 106.25. Well, the market is lacking volatility amid NFP figures which are due during the U.S. session today. 


AUD/USD – Daily Analysis

The AUD/USD pair is currently moving at 0.6817, bullish from a bearish of 0.6793, bullish by 0.30% and moving to 0.6820 the high. There was some short covering taking place after the Hong Kong headlines yesterday. Short covering continued overnight due to the trade balance data that represented another solid surplus.

As of today, talking about risk sentiment, there is risk-on sentiment due to the announcement in the Tokyo trade that the United States and China agree for meeting to discuss trade problems. Moreover. The Australian Dollar started its recovery after the upbeat Gross Domestic Produce and steady hand from the Reserve Bank of Australia. 

However, many traders are not sure that the upcoming trade talks could also reach any positive outcome, so they fear the market could be facing further disappointments. After all, the Reserve Bank of Australia regards the “trade and technology disputes as a major headwind.


Looking forward, the imminent significant risk before the weekend will come in the shape of United States data. Even though we look for further moderate results vs agreements, ADP presents some upward risk to our estimate.

    

Daily Support and Resistance

S3 0.6728

S2 0.6759

S1 0.6777

Pivot Point 0.6789

R1 0.6807

R2 0.6819

R3 0.685

AUD/USD – Trading Tips

Consider staying bullish above 0.6789 to target 0.6840 and bearish below 0.6840 to target 0.6789. 


Gold – XAU/SUD- Daily Analysis

gold prices dropped its most in a day for 2019 on Thursday how quickly the United States and China rhetoric can swing the other way.

Spot gold, reflective of trades in bullion, traded at $1,518.52 per ounce by 2:45 PM ET (18:45 GMT), down $34.06, or 2.2%, on the day after news that the U.S. and China have agreed to more trade talks in October. That was its highest percentage drop for the year.


For weeks now, investors have gathered into gold, egged on by central-bank buying of bullion between the global downtrend for interest rates. Escalating hostilities between the United States and China are driven by their tariff war. That also led to widespread risk aversion that hammered U.S. bond yields, prompting greater hedges in safe-havens.

Daily Support and Resistance

R3: 1594.25

R2: 1571

R1: 1561.55

Pivot Point 1547.75

S1: 1538.3

S2: 1524.5

S3: 1501.25

Gold – Trading Tips

Gold completed retracement at 1534 and continues its bearish reversal amid faded risk sentiment. Let’s look for sell trades below 1519 area, and the target is likely to be 1500 and 1496. 

All the best!  

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