Market Roundup
•Japan Aug Monetary Base (YoY) 0.6%, 0.6% forecast, 1.2% previous
• Australia Current Account (Q2) -10.7B ,-5.0B forecast, -4.9B previous
• Australia Net Exports Contribution (Q2) 0.2%, 0.6% forecast, -0.9% previous
Looking Ahead Economic Data(GMT)
•06:30 Switzerland Aug CPI (MoM 0.1% forecast, -0.2% previous
•06:30 Switzerland Aug CPI CPI (YoY) 1.2% forecast, 1.3% previous
•06:45 French Jul Government Budget Balance -103.5B previous
•07:00 Switzerland GDP (YoY) (Q2) 0.6% previous
•07:00 Switzerland GDP (QoQ) (Q2) 0.5% forecast, 0.5% previous
•07:00 Spanish Aug Unemployment Change -6.3K forecast, -10.8K previous
Looking Ahead Events And Other Releases (GMT)
• No Data Ahead
Currency Forecast
EUR/USD: The euro eased against the dollar on Tuesday as investors braced for a wave of economic data, including Friday’s U.S. payrolls report, which will impact the magnitude of the Federal Reserve's interest rate cut. The payrolls data, set to be released on Friday, will be critical following Federal Reserve Chair Jerome Powell's shift from combating inflation to safeguarding against job losses Economists surveyed by expect the addition of 165,000 U.S. jobs in August, up from an increase of 114,000 in the previous month. The euro was last at $1.1060, not far from the two week low of $1.1042 it touched in the previous session.Immediate resistance can be seen at 1.1128(23.6%fib), an upside break can trigger rise towards 1.1185(Aug 28th high).On the downside, immediate support is seen at 1.1030(38.2%fib), a break below could take the pair towards 1.0968 (50%fib).
GBP/USD: Sterling eased against the dollar on Tuesday as focus remained on a plethora of global economic data this week, including a crucial U.S. jobs print. Globally, primary focus will be on Friday's U.S. jobs report as investors place bets on the scope of potential rate cuts by the Federal Reserve this year. In the UK, investors will be watching for the Purchasing Managers' Index (PMI) and housing data this week, while producer prices and retail sales are among the crucial data points on their European radar. Immediate resistance can be seen at 1.3284(23.6%fib), an upside break can trigger rise towards 1.3315(Higher BB).On the downside, immediate support is seen at 1.3115(38.2%fib), a break below could take the pair towards 1.3052(50%fib).
AUD/USD: The Australian dollar eased against dollar on Tuesday after data showed Australia current account deficit hits six-year high. Australia's current account deficit expanded to its largest in six years for the June quarter, driven by falling commodity prices and increased outflows of money due to debt repayments and dividend payments.Data released by the Australian Bureau of Statistics on Tuesday showed a current account deficit of A$10.7 billion ($7.26 billion) for the June quarter, significantly surpassing the forecasted shortfall of A$5.9 billion. The Aussie was trading at $0.6785 after reaching an eight-month high of $0.6823. Immediate resistance can be seen at 0.6785(Daily high), an upside break can trigger rise towards 0.6826(Daily high).On the downside, immediate support is seen at 0.6751(38.2%fib), a break below could take the pair towards 0.6699(50%fib).
USD/JPY: Dollar slipped slightly from a two-week high against the yen on Tuesday as investors awaited upcoming U.S. economic data. This week, attention will be focused on the U.S. payrolls report set for Friday, especially after Fed Chair Jerome Powell's recent indication that interest rate cuts might soon begin due to concerns about the labor market. Before that report, job openings data on Wednesday and the jobless claims report on Thursday will be closely watched. Economists forecast an increase of 165,000 jobs in August, up from the 114,000 added the previous month.. Strong resistance can be seen at 146.67(38.2 %fib), an upside break can trigger rise towards 147.00(Psychological level). On the downside, immediate support is seen at 143.95(23.6 %fib), a break below could take the pair towards 142.51(Lower BB).
Equities Recap
Japan's Nikkei share average climbed on Tuesday, supported by a weaker yen that lifted investor sentiment. Additionally, long-term domestic bond yields reached their highest levels in nearly a month, further boosting banks and insurers.
The Nikkei was up 0.24% at 38,792.33, as of 0215 GMT.
Commodities Recap
Gold prices edged lower on Tuesday as investors awaited a series of U.S. economic reports to assess the potential size of the Federal Reserve's anticipated interest rate cut this month.
Spot gold eased 0.2% at $2,494.19 per ounce by 0155 GMT. Prices hit a record high of $2,531.60 on Aug. 20.U.S. gold futures fell 0.1% at $2,526.10.
Brent oil prices fell on Tuesday as concerns about a sluggish Chinese economy dampened demand, overshadowing the effects of the blockade on oil production facilities in Libya.
Brent crude futures were down 37 cents, or 0.48%, to $77.15 a barrel by 0156 GMT.
U.S. West Texas Intermediate crude , which did not have a Monday settlement because of the U.S. Labour Day holiday, was 28 cents up from its Friday close of $73.55.
