[B]Daily Fundamental Dose: 17-August-2016[/B]
Hello Traders,
Following Monday’s weaker US Empire State Manufacturing, USD traders were eagerly waiting for the monthly reading of Inflation stats, an important factor that governs Fed’s decision making process together with jobs report. However, the headline CPI, in addition to the Core reading, bowed-down to greenback bears and pulled the US Dollar Index (I.USDX) to third consecutive negative daily closing. On the contrary, the UK Inflation surprised GBP traders when the number ticked up to 0.6%, highest since December 2014 while upbeat EU ZEW Economic Sentiment helped the EUR to extend its recent north-run. Furthermore, speculations concerning oil production freeze talks by major producers during next month meeting kept fueling the Crude prices, which together with the positive Canadian Manufacturing Sales propelled the CAD, AUD and NZD prices towards north. Moreover, JPY and Gold remained strong with on-going rush for easy monetary policy across the globe.
During early Wednesday, New-Zealand job numbers provided additional strength to the Kiwi, as the NZD it known as, with the Employment Change surging to the record highs and Unemployment dipping down the lowest since may 2009. Additionally, the quarterly reading of Australian wage growth remained subdued and gave rise to profit-booking in AUD pairs while Crude also pared some of its recent gains ahead of US Crude stockpile details.
Alike Tuesday, the Wednesday also becomes an important day for the GBP and USD traders as UK Job details and minutes of recent FOMC meeting are scheduled for release. While UK Earnings and Claimant Count Change pose alternative numbers, increasing the Pound traders’ trouble, the GBPUSD participants should concentrate on 1.3100 resistance and 1.2930 support numbers. For the USD, the minutes will carry higher weight as the latest meeting wasn’t followed by Fed Chair’s press conference and some of the FOMC members have been loud mouthed in public while favoring a rate-hike in 2016. Given the minutes indicate a rate-hike in September meeting, which will also release summary of Economic Projections and a press conference by the Chair, chances of the greenback to reverse its losses can’t be denied.
Hence, upbeat minutes and absence of any important details from EU can drag the EURUSD to negate its recent trend-line break and test 1.1190-80 support-zone while on the alternative case the pair can rise to 1.1330. For USDJPY, 99.50 and 101.40 are crucial levels where as 0.7330 can continue acting as strong upside resistance for NZDUSD with 0.7210 being immediate support to watch. Additionally, 0.7630 is an important support for AUDUSD and the USDCAD seems bouncing back to above 1.2900 mark with profit-booking in Crude prices.
Have a nice trading-day….