Confidence and Manufacturing Data Hit US Dollar

CB (Conference Board) Consumer Confidence and the Richmond Fed Manufacturing Index (both for September) were released a short time ago, and the data isn’t pretty. The CB Consumer Confidence came out at 125.1 vs 134.2 last. The Richmond Fed Manufacturing Index cameo out at -9 vs +1 last. DXY and USD/JPY sold off immediately following the data.

DXY traded from 98.56 down to 98.44. We have been discussing how the DXY has been trading in a range for the last week or so and that it finally broke out yesterday above the 98.74 level, just to reverse close the day back under that level. Often, if we have a false breakout on one side of a range, price comes back to test the other side of the range. The bottom of that range is 98.14. Price may be headed back towards that level short-term to test that level once again. The 50 Day Moving Average is lurking around that level as well near 98.04. Resistance now at yesterday’s highs at 98.83.

Source: Tradingview, FOREX.com

USD/JPY had also moved lower on the data trading from 107.70 down to 107.38. The US Dollar pair obeyed the strong resistance last week above near 108.50, which was horizontal resistance and the 50% retracement level from the April 24^th highs down to the August 26^th lows. USD/JPY is down the last three days in a row, and with this fresh data, it’s possible it may continue lower (although there is still half the US session to trade). Support below at the 50 Day Moving Average near 107.08. Below that is old resistance at 106.75. Previous resistance levels now act as support.

Source: Tradingview, FOREX.com

In the short-term, horizontal resistance comes in near 107.80. Next level is the previously mentioned resistance from last week near 108.50.

Source: Tradingview, FOREX.com

As of the time of this writing, President Trump has just wrapped up speaking at the UN. Be on the lookout for headlines as he meets with global leaders throughout the day, which could further impact US Dollar pairs.

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.

FOREX.com is a trading name of StoneX Financial Pty Ltd.

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.

While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.

StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment and CFD investors do not own or have any rights to the underlying assets.

It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.forex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.forex.com/en-au/terms-and-policies/.

StoneX Financial Pty Ltd, Suite 42.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.

Delayed London Stock Exchange (LSE) Data

The London Stock Exchange (LSE) market data displayed or referenced on this website is provided on a delayed basis and is not in real time. The delay period may vary but is typically at least 15 minutes. This data is intended for information purposes only and should not be relied upon for trading, investment, or other financial decisions. We do not guarantee the completeness, reliability, or suitability of the data for any particular purpose. Users should consult real-time data sources and obtain professional advice before making any financial decisions.