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Tuesday, September 15th
AUD/USD was weaker after RBA minutes discussion of the impact caused by Chinese slowdown. During the meeting, members noted that Chinese authorities had for some time been selling foreign exchange reserves to prevent the depreciation of yuan against the US dollar in view of significant capital outflows, which contrasted with the experience in the previous decade. RBA is expected to keep the current monetary policy and continue monitoring data while inflation remains on target. The Australian dollar opened trades at 0.7134 subsequently easing to 0.7111. Australian data suggested that New Motor Vehicle Sales contracted by 1.6% in August after 1.3% fall of July. The support can be found at 0.7065, while resistance is located at 0.7226.
GBP/USD is slightly down today after a volatile trading session seen on Monday. However, the cable remains in its previous consolidation corridor in between 1.5415 and 1.5690. From the technical point of view, the pound has compensated losses of the beginning of September, but in order to continue its bullish trend, Britain will need to provide some solid fundamental data. Ahead in the day, markets are watching the UK CPI and PPI figures. The experts are forecasting a surge to 1.55 later in the week, but on the downside, support can be met at 1.5273.
USD/JPY showed some downside on Tuesday after BoJ left its monetary policy unchanged and investors remained cautious ahead of the Fed policy statement expected later in the week. The officials called for ¥80 trillion in annual asset purchases by central bank to help raise the inflation and support growth. Yesterday’s Japanese data showed that Industrial Production in Japan was lower by 0.8% in July. On the US side, Fed Chair Janet Yellen has said that an interest rate increase solely depends on the data but it is highly anticipated that the rates will be raised before the end of this year. The yen might go as low as 118.94, where it will meet the support eventually rebounding to the 120.54 area with next resistance at 121.15.
EUR was down on Monday after unstoppable six-day rise against the US dollar. It seems like investors are showing some reasonable skepticism before the possible rate hike in the US on Thursday, so the current 1.1309 price might fall below 1.1276 in course of today’s session. From euro zone, data is expected, including Employment Change, Trade Balance and Zew Economic Sentiment. On the US side, traders are watching the retail sales numbers.
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