Fed Chair Jerome Powell’s comments on the Jackson Hole Symposium resulted in the worst weekly candle in US500 since June.
Market updates on August 7
Key events ahead:
The speech by the FOMC member Evans – 16:30 MT time
- During the RBNZ meeting, the regulator cut its interest rate by 50 basis points (vs. 25 bpt expected). As a result, the New Zealand dollar fell to the lowest levels in 3 years. On H4, the support levels for kiwi lie at 0.6367-0.6377. If these levels are broken, the further fall will be limited by the 0.6296 level. At the moment NZD/USD is trying to rebound towards the resistance at 0.6451. Technically, RSI is about to leave the oversold zone, which may provide a buying opportunity.
- Gold has risen even more to its highest levels since 2012 on global fears surrounding trade war between the US and China and comments on the launch of missiles by North Korea. On H4, the price for the yellow metal is trading above the $1,480 level. The next resistance for gold will be placed at $1,515. In case of a reversal, pay attention to the support level at $1,446. If it is broken, the next support will lie at $1,412. RSI is looking up, which means that the rise may continue.
- AUD/USD fell to the 10-year low, as investors are afraid that the Reserve Bank of Australia will follow the path of its antipodean colleague. On the 4-hour chart, AUD/USD tested the 0.6676 level below the border of the downward trading channel but bounced back within the borders. If the aussie recovers more, the first resistance will lie at 0.6778. After the breakout, pay attention to the 0.68 and 0.6819 levels. On the other hand, strong bears may pull the pair down once again and try to break the 0,6676 level with the following test of the 0.6622 level.
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.
The United States will publish the Inflation Rate and Core Inflation Rate, also known as US CPI and Core CPI, on August 10 at 15:30 GMT+3.
As Europe moves into recession, next week may provide us with some amazing trading opportunities. Here they are!
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
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.