Currency snapshot (commodity pairs)

Dollar index trading at 96.33 (+0.02%)

Strength meter (today so far) - Aussie -0.91%, Kiwi -0.44%, Loonie -0.25%.

Strength meter (since last week) - Aussie -2.38%, Kiwi -2.02%, Loonie -0.68%.

AUD/USD -

Trading at 0.701

Trend meter -

• Long term - Sell, Medium term - Sell, Short term - Range/Buy

Support -

• Long term - 0.60, Medium term - 0.65, Short term - 0.685, immediate - 0.695

Resistance -

• Long term - 0.83, Medium term - 0.725, Short term - 0.725

Economic release today -

• CB leading indicator rose by 0.3% in July compared to drop of -0.3% in June.

Commentary -                                                                               

• Aussie has formed inverted hammer on Friday and selling off since then. Selloffs likely to continue. Chinese weak PMI is causing additional headwinds. Active call - Sell Aussie with stop around 0.785 and 0.825 to target 0.715, 0.70, 0.685 and 0.65.

NZD/USD -

Trading at 0.626

Trend meter -

• Long term - Sell, Medium term - Range/sell, Short term - Range/Sell

Support -

• Long term - 0.56, Medium term - 0.60, Short term - 0.615

Resistance -

• Long term - 0.71, Medium term - 0.68, Short term - 0.643-0.65

Economic release today -

• NIL

Commentary -

• Kiwi in for its next target around 0.56 against Dollar, with slowdown in China and further loosening of policy from RBNZ. Kiwi is feeling the heat as investors dump the currencies fearing further rout in China.

USD/CAD -

Trading at 1.331

Trend meter -

• Long term - Buy, Medium term - Range, Short term - Range/Buy

Support -

• Long term - 1.19, Medium term - 1.26, Short term - 1.29

Resistance -

• Long term - 1.38, Medium term - 1.35, Short term - 1.34

Economic release today -

• Retail sales for August grew by 0.5% in August, however no growth is seen when Autos excluded.

Commentary -                                                                                         

• Canadian Dollar in spite of stronger oil price is bearing the brunt of weakening China today, however Loonie is the best performer this week so far.