Market Roundup
• US Aug CB Employment Trends Index 52.55. 50.89 previous
• US IBD/TIPP Economic Optimism 45.0,46.8 previous
• US 3-Month Bill Auction 0.115%,0.115% previous
• US 6-Month Bill Auction0.125%, 0.105% previous
• US 52-Week Bill Auction 0.140%,0.140% previous
• US July Consumer Credit 12.25B, 13.50B, 8.95B previous
Looking Ahead - Economic Data (GMT)
•22:45 New Zealand Manufacturing Sales Volume (QoQ) (Q2) -1.7% previous
•23:50 Japan M3 Money Supply 1,894.8T previous
•23:50 Japan M2 Money Stock (YoY) 7.9% previous
•00:30 Australia Sep Westpac Consumer Sentiment -9.5% previous
•01:00 New Zealand ANZ Business Confidence -41.8 previous
•01:30 China Aug CPI (YoY) 2.4% forecast, 2.7% previous
•01:30 China Aug PPI (YoY) -2.0% forecast, -2.4% previous
•01:30 China Aug CPI (MoM) 0.4% forecast, 0.6% previous
•01:30 Australia Home Loans (MoM) 5.5% previous
•01:30 Australia Invest Housing Finance (MoM) 8.1% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currencies summaries
EUR/USD: The euro declined against dollar on Tuesday ahead of the European Central Bank’s post-summer meeting later in the week. The main focus this week is on the European Central Bank’s policy decision on Thursday.Most analysts don’t expect a change in the central bank’s policy but are looking to the message on its inflation forecasts and whether it seems concerned by the euro’s strength following its recent rise to $1.20. Immediate resistance can be seen at 1.1830 (5 DMA), an upside break can trigger rise towards 1.1870 (38.2%fib).On the downside, immediate support is seen at 1.1775 (50%fib), a break below could take the pair towards 1.1724 (Lower BB ).
GBP/USD: Sterling fell more than 1% against the dollar on Tuesday as fears grew that Britain was preparing to undercut its Brexit divorce treaty and torpedo trade talks with the European Union. The latest round of negotiations started on Tuesday, with Britain warning Brussels that it was ramping up preparations to leave without an agreement. Sterling took another step lower after the head of the British government’s legal department quit. Newspapers reported he had left in response to suggestions that Prime Minister Boris Johnson was threatening to override the divorce deal.The clock is ticking on an October deadline for a trade deal and the end of the status quo transition arrangement in late December. Immediate resistance can be seen at 1.3070 (50%fib), an upside break can trigger rise towards 1.3178 (21DMA).On the downside, immediate support is seen at 1.3024 (Daily low), a break below could take the pair towards 1.2957 (Lower BB).
USD/CAD: The Canadian dollar fell to a two-week low against its U.S. counterpart on Tuesday as oil prices tumbled and a selloff in technology shares weighed on investor sentiment, with the loonie sliding one day before a Bank of Canada interest rate decision.The loonie was trading 0.9% lower at 1.3215 to the greenback, or 75.67 U.S. cents, its biggest decline since June 11. The currency hit its weakest intraday level since Aug. 25 at 1.3220, having pulled back from its strongest in nearly eightmonths last week at 1.2990. U.S. crude oil futures settled 7.6% lower $36.76 a barrel, after Saudi Arabia cut its October selling prices. Immediate resistance can be seen at 1.3313 (61.8%fib), an upside break can trigger rise towards 1.3338 (50DMA).On the downside, immediate support is seen at 1.3211(50%fib), a break below could take the pair towards 1.3111(38.2%fib).
USD/JPY: The dollar declined against the Japanese yen on Tuesday as increased tensions between Washington and Beijing increased demand for dollar. Fresh tensions between Washington and Beijing after U.S. President Donald Trump again raised the idea of decoupling the U.S. and Chinese economies also came into focus but appeared to have little impact. Investors will be watching to see if the U.S. Congress is likely to pass additional spending as lawmakers begin returning to Washington this week. Strong resistance can be seen at 106.83 (50%fib), an upside break can trigger rise towards 107.00 (Psychological level).On the downside, immediate support is seen at 106.06 (9 DMA), a break below could take the pair towards 105.54 (38.2%fib).
Equities Recap
European shares fell on Tuesday on fears that Britain was in danger of leaving the European Union without a trade agreement, with energy firms and technology stocks among the biggest decliners.
UK's benchmark FTSE 100 closed down by 0.12 percent, Germany's Dax ended down by 1.01 percent, France’s CAC finished the day down by 1.59 percent.
U.S. stocks dropped for a third straight session on Tuesday as a sell-off in high-flying technology names continued from the prior week, while Tesla was poised for its worst day in nearly six months after the stock was passed over for inclusion in the S&P 500.
Dow Jones closed down by 2.25% percent, S&P 500 closed down by 2.76 % percent, Nasdaq settled down by 0.41% percent.
Commodities Recap
Gold prices fell 1% on Tuesday as a strong dollar outweighed lingering economic concerns and investors awaited policy cues from the European Central Bank.
Spot gold was down 0.5% at $1,918.79 per ounce by 1203 GMT, after falling as much as 1% to $1,907.61. U.S. gold futures fell 0.7% to $1,919.90 per ounce.
Oil futures settled sharply lower on Tuesday, with Brent sinking below $40 a barrel for the first time since June and U.S. crude falling nearly 8% after Saudi Arabia cut its October selling prices and COVID-19 cases rebounded in several countries.
U.S. West Texas Intermediate (WTI) crude settled down$3.01 or 7.6%, at $36.76, earlier hitting lows not seen since June 15. Brent crude fell $2.23, or 5.3%, to $39.78 a barrel.
