Today is a holiday in North America for Labour Day in USA and Canada so it will be a very quiet session.
Yesterday we had the Chinese Manufacturing PMI which has come out stronger at 51 so this might give the Aussie some buying interest today. Friday’s session closed with a bullish greenback as stocks continued to slide and VIX rallied. It seems that a military conflict by the US in Syria will be tempered as Congress has signed a petition to Obama to go through the UN. The UK House of Commons also have voted for the UN Security Council to handle this once proof has been obtained. So oil and gold both retraced their run up putting pressure onto the commodity currencies of Australia and Canada.
DATA HIGHLIGHTS TODAY – AU Building approvals. UK Manufacturing PMI.
AUDUSD – Aside from the Chinese data, the Aussie will be pretty quiet Monday, with the US holiday and RBA on Tuesday few will take on new positions. Looking at the individual bars we can clearly see the sentiment is still a sellers market. Expect a minor bounce on Monday though.
EURUSD – The bears certainly swatted the euro last week, at least it managed to claw back above support on the close. The sentiment is still there and this could continue back to 1.34 this week ahead.
GBPUSD – Friday’s bar was a complete lack of commitment with it closing in the middle of the day’s range. It was a LHLL however. So still patiently waiting for an opportunity to get long.
NZDUSD – Still in downtrend and closed right on its low but support is coming in at 7700 and will be interesting to see if the buyers support it yet again.
USDCAD – As I thought, no pullback to get an entry on daily timeframe. Will be quiet Monday with both countries in this cross on holidays. Looking for an entry in shorter timeframes.
USDJPY – Still fluffing about under the 50ema with no clear sign of continued trends, just range bound or even a wedge squeezing price in.
GOLD – Unlike Ben Bernanke some people do know how to trade gold. Last week it was clear that a reversal off the resistance would happen and traded it short. Minor support at 1385 but I think it will tag 1350 this week.
David Long / Proprietary Trading Manager