Daily economic digest from Forex.ee
Stay informed of the key economic
events
Tuesday, September 22nd
USD/CAD was higher as downbeat Canadian data on wholesale sales encouraged traders to extend their long positions. Statistics Canada reported on Monday that wholesale sales were flat in July versus expectations for a 0.8% increase. Although, Canadian dollar remained supported by the rising oil prices on Tuesday, which helped to trim yesterday losses a little. Ahead in the week, market is expecting Canadian core retail sales data. Currently, the pair is trading at 1.3233. Rising to 1.3353, would still be viewed as a consolidation move. If the price rises above 1.3353, the next target would be set at 1.3469. On the downside, 1.30 remains a strong support level, as it was previously a hard resistance level.
GBP/USD is likely to have a volatile European session today amid publication of British data including CBI Industrial trends orders, Public Sector Net Cash Requirement and Public Sector Net Borrowing. The pair remains in its previous consolidation corridor in between 1.5425 and 1.5690 with expectations mostly bullish. However, this week, we saw some downside after the quick recovery of the cable last week over the Fed announcement of leaving the interest rates unchanged. The ongoing price fall is stipulated by the dollar trimming losses. The immediate resistance is located at 1.5530, above which gains could be extended to 1.56 level. As for support, the 1.5371 level is the right one to watch in course of today’s trade.
AUD/USD was moving up in Asia as Australian House Price Index for Q2 was out in green colour, higher than expected. Analysts forecasted a 2.5% growth, but the actual figure was at 4.7%.Meanwhile, the Chinese slowdown remains in the focus of attention as investors are expecting to see if any additional stimulus measures will be implemented by the Chinese government. Tomorrow, the market is viewing the CB Leading Index from Australia and Caixin Manufacturing PMI from China. On the US side, there will be Crude Oil Inventories and Manufacturing PMI figures. The aussie is currently changing hands at 0.7146 against its American counterpart with a strong support level at 0.7054, while resistance is located at 0.7202. Long-term expectations remain bearish as lower oil prices and unavoidable rate hike in the US will cause the AUD price to go down. Moving averages have not yet crossed and are pointing down.
EUR/USD suffered one of the biggest losses comparing to other majors since the beginning of the week as dollar was showing correctional moves after the Fed announced that the conditions for a rate hike have not yet been reached. The single currency opened trades at 1.1286 on Monday and by now has stepped down to 1.1171 level. Ahead in the day, the Consumer Confidence numbers are expected, while tomorrow will provide data on German and euro zone Manufacturing PMIs, European Services PMI and Markit Composite. Meanwhile, the pair remains in the middle of its long-term consolidation in between 1.1469 and 1.0810. The sentiment is mostly bearish. The macro-calendar for the day remains mainly light, so the main focus of attention is speeches of Fed officials.
The best conditions for making a start on STP only at Forex.ee! Register an account now and feel the difference from the first trade!
Your European ECN-broker,
Forex.ee.
