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PBoC Efforts To Support Yuan & European Equity Indices Round-Up

Updated 09:13AM 08/08/2019

FX Strategy 08 Aug 19

 

AUD and SEK are the top G10 FX gainers today, up 0.38% and 0.29% vs the dollar while USD and CHF are the top losers. The U.S. dollar slipped broadly as risk sentiments stabilized after robust Chinese trade data. The PBoC efforts to slow a fall in the value of Yuan also encouraged Market to buy riskier assets. Chinese exports rose 3.3% while the market expected a fall of 2%. This along with efforts to support Yuan (massive drop in renminbi value could lead to capital outflows) gave the market some confidence after RBNZ bombshell earlier in the week. In the Asian equities space, the Nikkei 225 closed up 0.37% at 20,593.35, Hang Seng closed 0.48% at 26120.77 and Kospi ended 0.57% at 1920.61. The European equities were trading firm with the FTSE up +0.12% at 7207.69, DAX up +0.52% at 11710.41, and CAC up +0.92% at 5314.97. In the rates market, global yields were trading firmer; the US 10-year yield was trading at 1.7258% and the Bund 10-year yield trading at -0.563%. In the energy space, the Brent (front month) is trading up (2.35%) for the day at $57.55.

 

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Daily Pivots for Key Currency Pairs

 
 

Economic Calendar

 
 

10-year Yields Chart (6-month)

 
 

USD-Index Daily Chart (6-month)

 
 

Brent Front Month Daily Chart (6-month)

 
 

Trade Weighted Basket Hourly (two-week)

 
 

(Content and Data by Tradermade)

 

Major Currency Pairs

 

EURUSD Chart (Two-week)

 
 

Strategy: Resistance at 1.1234 for 1.1110
Short-term view: EUR/USD resistance at 1.1234, MACD and RSI are bearish. Hence, we see a move lower to 1.1110. Above 1.1234 to open 1.1280.

 

GBPUSD Chart (Two-week)

 
 

Strategy: Resistance at 1.2190 for 1.2112
Short-term view: GBP/USD resistance at 1.2190, momentum is still bearish and we see a dip to 1.2112, likely 1.2046. Above 1.2190 to open 1.2243.

 

USDJPY Chart (Two-week)

 
 

Strategy: Resistance at 106.65 for 105.50
Short-term view: USD/JPY has resistance around 106.65, momentum is still bearish hence, we see a move lower to 105.50 and 105.03 Above 106.65 opens 107.05

 

AUDUSD Chart (Two-week)

 
 

Strategy: Resistance at 0.6830 for 0.6725
Short-term view: AUD/USD short-term downtrend continues, we look for resistance at 0.6830 for a move lower towards 0.6725, likely 0.6650. Above 0.6830 we look for 0.6869 in the immediate short-term.