Last week several important economic updates influenced the Forex market. US preliminary GDP fell less than expected (0.6% actual vs. 0.7% forecast). Below you will find the key events to trade on during the week from August 29 to September 2.
Market updates on August 5
Key events ahead:
American ISM Non-Manufacturing PMI – 17:00 MT (14:00 GMT) time
The weekend was hurtful for the market sentiment with the updates from the Chinese side. While Hong-Kong press informed that China questioned the chance of trade talks' continuation with the US, Beijing asked State buyers to halt US agricultural imports. It resulted in the risk aversion in the markets.
- USD/CNH has risen to the record highs above the 7th level and created resistance at 7.1050. If the Chinese yuan is supported, the first key level will lie at 6.9680. After that, pay attention to the next support levels at 6.9360 and 6.9270.
- As risk-off sentiment intensified, gold moved higher to the resistance at $1,473 on H4. In case of reversal, pay attention to the $1,448, $1,436 and $1,421 (100 and 50 period SMA)
- USD/JPY jumped to the lowest levels since January's flash crash. The first support for the pair lies at 105.65. After that, pay attention to the 105.3 level. If bulls take over the market the first resistance will lie at 107.45. After the break of this level, reaching the resistance at 107.79 will be possible.
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The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.