Talking Points:
– GBP/USD Vulnerable to Further Losses as BoE Testifies on Inflation Report
– NZD/USD Needs More Hawkish RBNZ More Meaningful Recovery
– USDOLLAR Risks Larger Correction as RSI Divergence Takes Shape

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GBP/USD

GBP/USD holding near-term support around 1.6280-1.6300, but remains at risk for a further decline as the Relative Strength Index (RSI) holds & pushes deeper into oversold territory.
With Bank of England (BoE) scheduled to testify on August Inflation report will watch for more detailed surrounding the interest rate outlook; will BoE Minutes, which are due out on September 17, show greater dissent?
The DailyFX Speculative Sentiment Index (SSI) shows retail crowd remains net-long GBP/USD, with the ratio currently standing at +2.02.

NZD/USD

Reserve Bank of New Zealand (RBNZ) widely expected to hold rates at 2.50% at the September 10 meeting; Governor Graeme Wheeler to hold press conference at 21:05 GMT.
May see NZD/USD retain bearish trend/momentum on more neutral tone; will Wheeler continue to jawbone the New Zealand dollar?.
Next downside region of interest comes in around 0.8210 (78.6% retracement) to 0.8240 (78.6% expansion).

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Read More:
US Dollar Profit Taking Ensues on Surprise August NFPs Miss
NZD/USD Keeps Traders In Suspense Amid Void Of Reversal Candlesticks

USDOLLAR(Ticker: USDollar):

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10736.43

10768.29

10716.67

-0.09

152.53%

Chart – Created Using FXCM Marketscope 2.0
Dow Jones-FXCM U.S. Dollar Index fails to hold the fresh yearly high (10,768) as Non-Farm Payrolls (NFP) disappoints; string of failed closes above 10,753 (23.6% expansion) to 10,759 (61.8% retracement) may highlight greater risk for larger correction.
Bearish divergence continues to take shape on the RSI; still need to see a break of trendline support to favor downside targets.
10,657 (61.8% expansion) to 10,661 (23.6% retracement) will be first region to watch once a larger correction takes shape.

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Release

GMT

Expected

Actual

Change in Non-farm Payrolls (AUG)