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    Afternoon Report – 1st August

    THE DAILY REPORT

    TOP THINGS TO KNOW

    Forex Today: King Dollar held the head high, Antipodeans saved by China data, all eyes on BOE now

    (FXStreet 01/08/2019) - Forex market keeps being dominated by the King US Dollar (USD) during Thursday’s Asian session as traders searched solace in the Federal Reserve’s not-so-dovish rate-cut. The US Federal Reserve announced its first rate cut, of 0.25%, since 2008 financial crisis but poured cold water on the face of policy bears as the Chairman Jerome Powell turned down the prospects of the start of the broad easing cycle.

    With this, the greenback surged across the board, even ignoring the US President Trump’s early-day criticism of the Fed’s policy. The resultant flow took the funds off from Asian stocks while also fuelling the US Treasury yields.

    EUR/USD, GBP/USD and AUD/USD dropped to fresh multi-month lows ahead of China’s Caixin Manufacturing PMI that helped the Aussie to stage a bounce while NZD/USD and oil also trimmed some of the previous losses. China’s private manufacturing gauge rose past 49.6 forecast to 49.9 following yesterday’s pattern. Meanwhile, USD/JPY surged to 9-week high and Gold also visited a fortnight low despite political pessimism surrounding Iran and North Korea. Further to note is upbeat Indonesia Inflation data that couldn’t help the USD/IDR rise beyond 100-day moving average (DMA).
    Key Focus Ahead:

    Global traders now brace for the Bank of England (BOE) monetary policy meeting that is up for publishing quarterly inflation report at 110:00 GMT. Although major market players anticipate the UK central bank to maintain a hawkish tone with no policy change, looming Brexit uncertainty might not allow the Carney and Company to avoid uttering chances of future rate cuts.

    For the European session start, Markit Manufacturing Purchasing Managers’ Index (PMI) data for the Eurozone and the UK can entertain traders ahead of the BOE. The manufacturing gauges are up for publishing at 08:00 and 08:30 GMT respectively wherein the regional index may remain unchanged at 46.4 but the British figure could soften to 47.7 from 48.0.

    Furthermore, the US Manufacturing PMI data from Markit and ISM coupled with weekly jobless claims could make traders busy during the post-BOE trading hours.

    EUR/USD strong support lines up at 1.1000 – UOB

    (FXStreet 01/08/2019) - FX Strategists at UOB Group expect the pair to grind lower although 1.10 is seen as a tough support.

    Key Quotes:

    24-hour view: “The breach of the solid support at 1.1100 followed by a daily close below that level overnight has clearly negated the “slightly positive” underlying tone expected yesterday. From here, downside momentum will gradually build and we could see a test of overnight low of 1.1058. Support is at 1.1030 while resistance is 1.1090 then 1.1110”.

    Next 1-3 weeks: “After the clear break of 1.1100 overnight, EUR is likely to have rekindled its downside momentum. It is now expected to trade with a ‘downside bias’. That said, it is unlikely to accelerate downwards just yet. Strong support is expected at 1.1050 then 1.1000 with the latter unlikely to yield so easily. On the topside, we expect resistance at 1.1075 and 1.1100. Only a move above 1.1100 would negate the ‘downside bias’ and indicate that the recent weakness in EUR has stabilized”.

    TRADE OPPORTUNITIES

    Below are Trading Central's Intraday preference recommendations. Short (SELL) positions and long (BUY) positions have two targets issued which may be used as take profit levels. Above or below a certain figure indicates the pivot level which may be used as a level for stop loss.

    EURUSD Daily – Short positions below 1.1080 with targets at 1.1035 & 1.1010.

    This is general advice only and does not take into account your personal circumstances. “It is the Policy of ForexCT to recommend the use of stop/loss function to reduce risk of significant losses to customers.

    AUDJPY 30 Minute – The upside prevails as long as 74.60 is support.

    WHEAT 30 Minute – Short term rebound towards 496.50.

    EURAUD 30 Minute – The downside prevails as long as 1.6174 is resistance.

    DOW JONES 30 Minute – Long positions above 26825 with targets at 26980 & 27070.

    HANG SENG 30 Minute – Short positions below 27750 with targets at 27490 & 27390.

    NIKKEI Daily – Long positions above 20950 with targets at 22350 & 23000.

    This is general advice only and does not take into account your personal circumstances. “It is the Policy of ForexCT to recommend the use of stop/loss function to reduce risk of significant losses to customers.

    Economic Announcements (times in AEST)

    Risk Warning
    Trading FX and CFDs involves a substantial degree of risk and should only be undertaken with risk capital. Please consider our PDS and FSG before trading with us. A copy can be found on our website www.forexct.com.au. Forex Capital Trading Pty Ltd provides general advice that does not take into account your objectives, financial situation or needs. Investors do not own or have rights to underlying assets. Forex Capital Trading Pty Ltd is regulated by ASIC (AFSL 306400), ABN (69119086270). Forex Capital Trading Pty Ltd’s AFS license and Australian regulation only applies to the financial services being provided in Australia only.

    Posted: August 01, 2019 | 6:04 AM