USD continues to soar
Gary Christie September 25, 2020 5:24 PM
USDCHF and AUDUSD are the week's largest movers: Chart
The S&P 500 closed down 0.63% last week, pressured by the Energy (-8.6%), Automobiles & Components (-7.11%) and Banks (-6.16%) sectors.
Here is a review of key economic data over the past week:
Durable Goods Orders rose 0.4% on month in the August preliminary reading (+1.5% expected), compared to a revised +11.7% in the July final reading.
Initial Jobless Claims unexpectedly rose to 870K for the week ending September 19th (840K expected), from a revised 866K in the previous week. Continuing Claims declined to 12,580K for the week ending September 12th (12,275K expected), from a revised 12,747K in the week before.
New Home Sales spiked to 1,011K on month in August (890K expected), from a revised 965K in July, a level last reached in late 2006. The Mortgage Bankers Association's Mortgage Applications rose 6.8% for the week ending September 18th, compared to -2.5% in the week prior. Existing Home Sales rose to 6.00 million on month in August (as expected), from 5.86 million in July, a level last reached in late 2006.
Markit's US Manufacturing Purchasing Managers' Index increased to 53.5 on month in the September preliminary reading (as expected), from 53.1 in the August final reading.
The USD/CHF was the week's biggest gainer after climbing 1.93% WoW. The AUD/USD was the biggest laggard on the week declining 3.58%
Looking at the USD/CHF, The rebound continues. 0.9185 remains key support. Look for a continuation higher towards targets of 0.9375 and 0.9515 in extension.
Source: GAIN Capital, TradingView
Regarding the AUD/USD, the pair is challenging 0.7025 support after breaking below its 50-day moving average. A break below support may accelerate a decline towards 0.6775.
Source: GAIN Capital, TradingView
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.