Market Brief: King Dollar Remains Firmly In Control
Matt Simpson September 3, 2019 2:07 AM
- USD remained firmly in control throughout the session and is today’s strongest major. DXY hit its highest level since May 2017 and EUR/USD has broken trend support after hitting new lows. GBP and NZD are currently the strongest major, weighed down by Brexit developments and trade concerns, respectively.
- RBA held rates at 1% as widely expected, AUD pared most losses it sustained heading into the meeting but remains above key support ahead of tomorrow’s key GDP data.
- Australia posted their first current account surplus since the 1970’s today, as exporters enjoyed stronger sales last quarter. Analysts expect this could add 0.6 percentage points to Q2 GDP. However, retail sales declined by -0.1%, it’s first negative print in 11 months to underscore sluggish consumer consumption. Vehicle sales also dropped 11.5% in August.
- A mixed picture for equity markets saw shares in Japan and Singapore trade higher, whilst Chinese shares traded in the red.
- Minor ranges overall and traders are waiting further direction from US traders returning from the long weekend.
- NZD50 closed to a fresh record high, the ASX200 traded lower for the session with today’s RBA statement lacking a dovish tone.
- Traders in the US and Canada return to their desks after the 3-day weekend
- Markit and ISM release manufacturing PMI data for the US, with the former expecting it to remain just within contraction mode. ISM remains expansive (above 50) but is expecting to soften slightly to 51 from 51.2 prior, yet we could expect quite a market reaction should ISM dip below 50 as these reads are considered leading indicators for GDP (and therefore, Fed policy). Keep USD, gold and US indices on your radar. View more in Friday’s Week Ahead post
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.