USD Overview

Yesterday, USD strengthened against most major currencies except GBP, AUD and NZD.

The ISM Manufacturing PMI data (Actual: 56.0, Forecast: 54.6, Previous: 54.2) released yesterday indicated a continued expansion of the manufacturing sector at an increased pace in August. The ADP Non-Farm Employment Change data (Forecast: 1250K, Previous: 167K) will be released later at 2015 (SGT).


NZD/USD Outlook

Overall, NZD/USD is trending upwards. Recently, NZD/USD’s uptrend has stagnated.

Earlier today, Reserve Bank of New Zealand Governor Adrian Orr said in a speech that the central bank has the intention to carry on loosening monetary policy if necessary and may reduce interest rate to the negative level early next year.

NZD/USD’s next support zone is at 0.66700 and the next resistance zone is at 0.69000.
Look for short-term selling opportunities of NZD/USD.


AUD/USD Outlook

Overall, AUD/USD is trending upwards.

Yesterday, the Reserve Bank of Australia (RBA) held interest rate unchanged at 0.25%. The central bank increased the size of the Term Funding Facility and has extended its availability until the end of June 2021.

The Australian GDP q/q data (Actual: -7.0%, Forecast: -6.0%, Previous: -0.3%) released earlier today indicated a strong negative economic growth during the second quarter of 2020, putting the economy in recession after two consecutive quarters of negative growth.

Currently, AUD/USD is bouncing off the resistance zone of 0.73700 and the next support zone is at 0.72500.
With the Australian economy now in recession, look for selling opportunities of AUD/USD.


USD/JPY Outlook

Overall, USD/JPY is ranging across. Recently, USD/JPY moved higher into the key level of 106.

Currently, USD/JPY is testing to break above the key level of 106. Its next support zone is at 104.400 and the next resistance zone is at 106.800.
Look for short-term buying opportunities of USD/JPY if it breaks above the key level of 106.


EUR/USD Outlook

Overall, EUR/USD is ranging across. Recently, EUR/USD broke the resistance zone of 1.19200 and bounced down from the key level of 1.20.

The euro area CPI flash estimate y/y data released yesterday indicated a strong decline in annual inflation while unemployment rate rose close to expectation.

  • CPI Flash Estimate y/y (Actual: -0.2%, Forecast: 0.2%, Previous: 0.4%)
  • Core CPI Flash Estimate y/y (Actual: 0.4%, Forecast: 0.9%, Previous: 1.2%)
  • Unemployment Rate (Actual: 7.9%, Forecast: 8.0%, Previous: 7.8%)

Currently, EUR/USD is testing the support zone of 1.19200 and the next resistance zone is at 1.22100.
Look for selling opportunities of EUR/USD if it breaks the support zone of 1.19200.


GBP/USD Outlook

Overall, GBP/USD is trending upwards. Recently, GBP/USD bounced off the resistance zone of 1.34600 and broke below the key level of 1.34.

Bank of England Governor Andrew Bailey will be testifying about the economic impact of COVID-19 before the Treasury Select Committee later at 2100 (SGT). During this time, volatility is expected of GBP.

GBP/USD’s next support zone is at 1.32200 and the next resistance zone is at 1.34600.
Look for short-term buying opportunities of GBP/USD if it breaks the resistance zone of 1.34600 up until Governor Bailey’s testification at 2100 (SGT).


USD/CAD Outlook

Overall, USD/CAD is trending downwards. Recently, USD/CAD bounced off the support zone of 1.29800.

The Canadian Manufacturing PMI data (Actual: 55.1, Forecast: NA, Previous: 52.9) released yesterday indicated that the manufacturing sector grew at the fastest pace since August 2018.

USD/CAD’s next support zone is at 1.29800 and the next resistance zone is at 1.31800.
Look for selling opportunities of USD/CAD.


GBP/JPY Outlook

Overall, GBP/JPY is trending upwards. Recently, GBP/JPY broke the resistance zone of 141.200.

Bank of England Governor Andrew Bailey will be testifying about the economic impact of COVID-19 before the Treasury Select Committee later at 2100 (SGT). During this time, volatility is expected of GBP.

Currently, GBP/JPY is testing to break above the key level of 142. Its next support zone is at 141.200 and its next resistance zone is at 144.000.
If GBP/JPY breaks above the key level of 142, look for short-term buying opportunities up until Governor Bailey’s testification at 2100 (SGT).


EUR/JPY Outlook

Overall, EUR/JPY is trending upwards.

The euro area CPI flash estimate y/y data released yesterday indicated a strong decline in annual inflation while unemployment rate rose close to expectation.

  • CPI Flash Estimate y/y (Actual: -0.2%, Forecast: 0.2%, Previous: 0.4%)
  • Core CPI Flash Estimate y/y (Actual: 0.4%, Forecast: 0.9%, Previous: 1.2%)
  • Unemployment Rate (Actual: 7.9%, Forecast: 8.0%, Previous: 7.8%)

Currently, EUR/JPY is bouncing off the resistance zone of 126.500 and the next support zone is at 124.200.
Look for short-term selling opportunities of EUR/JPY.


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By Jin Dao Tai

JinDao Tai is an Entrepreneur, Award-Winning Forex Coach & Trainer, International Speaker and Multi-Million Dollar Trader. Starting out his career as an economic & financial consultant in Australia, one day he decided to change his life and pivoted into multiple entrepreneurship endeavours and eventually into managing a multi-million dollar portfolio.

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