The Australian dollar was up slightly during the Asian session as traders react to the Reserve Bank of Australia (RBA) minutes. In the minutes, the bank said that there was no need for further easing since the package was working as expected. Still, they committed to continue assessing the situation and did not rule out adjusting the current package. In the meeting, the members left interest rates unchanged and pledged to continue with an accommodative approach for as long as necessary. A key risk for the Australian economy is the second wave that is spreading in the country.
The US dollar declined in overnight trading as investors reacted to the weak New York Empire State manufacturing index. The index, which measures the manufacturing activity in New York, declined to 3.70 in August. This was lower than the previous 17.20 and the 15.0 that analysts were expecting. Later today, we will receive the important building permits and housing starts data from the US. Analysts expect the data to show that building permits increased from 1.25 million to 1.32 million while housing starts rose from 1.18 million to 1.24 million.
US futures declined during the Asian session as investors continued to focus on the US and China relationship. Futures tied to the Dow Jones and S&P 500 have dropped by 0.15% and 0.07%, respectively. In a statement yesterday, the US Commerce Department issued new rules curbing Huawei Technologies’ access to foreign-made chips. The rules prohibit non-US companies from selling any chips made using American technology to Huawei without a special license.
EUR/USD
The EUR/USD pair rose to an intraday high of 1.1890. On the daily chart, the price is above the 50-day and 100-day exponential moving averages. Also, the signal and main lines of the MACD are at the highest level in months. Similarly, the on-balance volume has risen to the highest level this year. The price is a few pips below this year’s high of 1.1916. Therefore, the price is likely to continue rising as it seems bulls are now in control.
USD/JPY
The USD/JPY declined to an intraday low of 105.55, which is the lowest it has been since August 7. On the four-hour chart, the price is slightly above the 23.6% Fibonacci retracement level at 105.51. The price has also moved below the short and medium-term moving averages. It is also along the lower line of the Bollinger Bands. Also, the RSI has moved to the oversold level of 30. Therefore, the price is likely to continue falling as bears target the next support at 105.00.
XBR/USD
The XBR/USD pair is little changed today. It is trading at 45.52, which is the same channel it has been in for the past few weeks. On the four-hour chart, the price is slightly above the 50% Fibonacci retracement level. It is also a few pips above the 50-day and 100-day exponential moving averages. Also, the price is forming a rising wedge pattern. Therefore, the price is likely to remain in this channel today.
