Talking Points:
– AUD/USD Fails to Push Above Former Support Ahead of RBA Minutes, Testimony
– USD/CAD Slips to Fresh Monthly Low as Canada Employment Tops Forecast
– USDOLLAR Holds Above Former Resistance Ahead of Fed Symposium
Index
Last
High
Low
Daily Change (%)
Daily Range (% of ATR)
DJ-FXCM Dollar Index
10564.17
10568.85
10553.66
0.00
53.30%
AUD/USD:
Fails to clear former support around 0.9330-40 ahead of Reserve Bank of Australia (RBA) Minutes & Governor Glenn Stevens’ semi-annual testimony.
With the recent series of lower-highs, the bearish momentum in the Relative Strength Index (RSI) favors downside targets.
The DailyFX Speculative Sentiment Index (SSI) shows retail crowd remains net-long on AUD/USD as the ratio currently stands at +1.31.
USD/CAD:
USD/CAD slips to a fresh weekly low of 1.0859 as Canada Employment climbs 41.7K in July with the jobless rate unexpectedly slipping to 7.0% from 7.1% the month prior.
Even though the bearish RSI momentum remains in focus, we’re sitting at trendline support along with a clutter of key Fibonacci levels around 1.0850-70; higher-low in place?
Bank of Canada (BoC) policy outlook may continue to dampen the appeal of the Canadian dollar as Governor Stephen Poloz remains reluctant to further normalize monetary policy.
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Read More:
Consolidation or Topping Pattern in AUD/NZD?
USDOLLAR Clears Resistance but for How Long?
USDOLLAR Daily
Chart – Created Using FXCM Marketscope 2.0
USDOLLAR(Ticker: USDollar):
Despite the mixed batch of U.S. data, the Dow Jones-FXCM U.S. Dollar Index continues to trade above former resistance (10,555-561) ahead of Federal Open Market Committee (FOMC) Minutes & Fed Economic Symposium in Jackson Hole, Wyoming.
Still waiting for bearish RSI break to look for a larger correction as there appears to be a growing divergence with price.
Will also keep a close eye on the 200-Day SMA (10,545); break & close below to provide further confirmation/conviction for a more meaningful pullback.
Interim Resistance: 10,590 Pivot to 10,604 (38.2% retracement)
Interim Support: 10,440 (78.6% retracement) to 10,450 Pivot
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Release
GMT
Expected
Actual
Empire Manufacturing (AUG)
12:30
20.00
14.69
Producer Price Index (MoM) (JUL)
12:30
0.1%
0.1%
Producer Price Index (YoY) (JUL)
12:30
1.7%
1.7%
Producer Price Index ex Food and Energy (MoM) (JUL)
12:30
0.2%
0.2%
Producer Price Index ex Food and Energy (YoY) (JUL)
12:30
1.6%
1.6%
Net Long-Term TIC Flows (JUN)
13:00
Total Net TIC Flows (JUN)
13:00
Industrial Production (MoM) (JUL)
13:15
0.3%
0.4%
Capacity Utilization (JUL)
13:15
79.2%
79.2%
Manufacturing Production (SIC) (JUL)
13:15
0.4%
1.0%
U. of Michigan Confidence (AUG P)
13:55
82.5
79.2
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— Written by David Song, Currency Analyst
To contact David, e-mail dsong@dailyfx.com. Follow me on Twitter at @DavidJSong.
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Source: Daily fx