Cozfx Daily Market Analysis

COZFX: Euro extends its losses in the morning session

COZforex: For the past trading session, the EUR declined 0.07% against the USD and closed at 1.1083.

Data showed that Euro-zone’s manufacturing PMI unexpectedly rose to a level of 47.0 in August, defying market expectations for a drop to a level of 46.2. In the previous month, the index had recorded a reading of 46.5. Additionally, the region’s services PMI unexpectedly climbed to a level of 53.4 in August, confounding market consensus for a decline to a level of 53.0. In the previous month, the index had recorded a reading of 53.2.

In Germany, the manufacturing PMI unexpectedly advanced to a level of 43.6 in August, defying market forecast for a fall to a level of 43.0. In the previous month, the index had recorded a reading of 43.2. However, the nation’s services PMI dropped to a level of 54.4 in August, less than market expectations for a decline to a level of 54.0. In the previous month, the index had recorded a reading of 54.5.

Separately, the European Central Bank, in its latest monetary policy meeting minutes, indicated that the central bank will launch fresh stimulus measures in September, which could include rate cuts and asset purchases, in an effort to address the region’s economic slowdown. Meanwhile, officials discussed the idea of changing its key inflation target as part of a potential broader strategic review.

In the US, the Markit manufacturing PMI unexpectedly declined to a level of 49.9 in August. In the prior month, the PMI had recorded a reading of 50.4. Further, the Markit services PMI decreased to 50.9 in August, more than market expectations for a fall to a level of 52.8. In the previous month, the Markit services PMI had registered a level of 53.0. On the contrary, seasonally adjusted initial jobless claims fell more-than-anticipated to a level of 209.0K in the week ended 17 August 2019, compared to a revised level of 221.0K in the previous week.

In technical analysis, COZFX strategist Nigel Boynton said: EUR/USD is expected to find support at 1.1054 and a fall through could take it to the next support level of 1.1035; Meanwhile, the pair is expected to find its first resistance at 1.1103, and a rise through could take it to the next resistance level of 1.1133.

With no macroeconomic releases across the Euro-zone today, traders would look forward to the US new home sales for July along with US Federal Reserve Chairman Jerome Powell’s speech, slated to release later in the day.

(COZ forex UK)

COZFX: Loonie trading higher in the Asian session

COZforex: For the past trading session, the USD declined 0.34% against the CAD and closed at 1.3252.

In the Asian session (at GMT0300), the pair is trading at 1.3237, with the USD trading 0.11% lower against the CAD from yesterday’s close.

In technical analysis, COZforex foreign currency senior currency strategist, Paul Chew said: USD/CAD is expected to find support at 1.3209 and a fall through could take it to the next support level of 1.3182; Meanwhile, the pair is expected to find its first resistance at 1.3290, and a rise through could take it to the next resistance level of 1.3344.

Amid lack of economic releases in Canada today, investor sentiment would be determined by global macroeconomic factors.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

(COZ forex UK)

COZFX: Loonie extends its losses in the Asian session

COZFOREX: For the past trading session, the USD rose 0.11% against the CAD and closed at 1.3328.

In the Asian session (at GMT0300), the pair is trading at 1.3342, with the USD trading 0.11% higher against the CAD from yesterday’s close.

In technical analysis, COZforex foreign currency senior currency strategist, Paul Chew said: USD/CAD is expected to find support at 1.3316 and a fall through could take it to the next support level of 1.3289; Meanwhile, the pair is expected to find its first resistance at 1.3365, and a rise through could take it to the next resistance level of 1.3387.

Going forward, traders would await Canada’s MLI leading indicator for July and the RBC manufacturing PMI for August, scheduled to release later in the day.

The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.

(COZ forex UK)

COZFX: Australia’s home loans approvals advanced more-than-estimated in July

COZFOREX: For the past trading session, the AUD rose 0.51% against the USD and closed at 0.6848 on Friday.

In commodities, LME Copper prices rose 0.2% or $10.5/MT to $5787.5/MT; Meanwhile, Aluminium prices rose 0.4% or $7.0/MT to $1761.5/MT.

Overnight data showed that Australia’s seasonally adjusted home loans approvals rose 4.2% on a monthly basis in July, higher than market consensus for a rise of 1.5%. In the prior month, home loan approvals had recorded a revised climb of 0.6%.

In the Asian session (at GMT0300), the pair is trading at 0.6851, with the AUD trading slightly higher against the USD from Friday’s close.

In technical analysis, COZforex senior currency strategist Ian • Quigley said: AUD/USD is expected to find support at 0.6821 and a fall through could take it to the next support level of 0.6790; Meanwhile, the pair is expected to find its first resistance at 0.6872, and a rise through could take it to the next resistance level of 0.6892.

Going ahead, traders would closely monitor Australia’s NAB business conditions and business confidence for August, set to release overnight.

The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.

(COZ forex UK)

COZFX: UK’s RICS house price balance rose in August

COZFOREX: For the past trading session, the GBP declined 0.21% against the USD and closed at 1.2328.

In the Asian session (at GMT0300), the pair is trading at 1.2329, with the GBP trading marginally higher against the USD from yesterday’s close.

Overnight data showed that UK’s RICS house price balance advanced 4.0% in August, compared to 9.0% in the prior month.

In technical analysis, COZforex foreign currency senior currency strategist, Paul Chew said: GBP/USD is expected to find support at 1.2304 and a fall through could take it to the next support level of 1.2280; Meanwhile, the pair is expected to find its first resistance at 1.2362, and a rise through could take it to the next resistance level of 1.2396.

Amid lack of economic releases in UK today, traders would focus on global macroeconomic events for further direction.

The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.

(COZ forex UK)

COZFX: Swiss Franc trading a tad lower in the morning session

COZFOREX: For the past trading session, the USD declined 0.16% against the CHF and closed at 0.9911 on Friday.

In the Asian session (at GMT0300), the pair is trading at 0.9912, with the USD trading marginally higher against the CHF from Friday’s close.

In technical analysis, COZforex foreign currency senior currency strategist, Paul Chew said: USD/CHF is expected to find support at 0.9889 and a fall through could take it to the next support level of 0.9867; Meanwhile, the pair is expected to find its first resistance at 0.9935, and a rise through could take it to the next resistance level of 0.9959.

With no macroeconomic releases in Switzerland today, investors would look forward to global macroeconomic releases for further direction.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

(COZ forex UK)