US dollar, Hang Seng, Chinese data, EUR / USD, AUD / USD – call points
- USD stopped after-sales sales by U.S. CPI sellers to maintain pre-data levels
- APAC shares are movingdlower after weak Chinese data, further suppression of the CCP
- The dollar maintained the tone of supply in Asia. Will EUR / USD continue the trend lower?
The US dollar continued to maintain its position even after the US consumer price index saw a slight blow overnight. Although this was a marginal shortcoming, it seems to ease the pressure on the Fed to drastically change its austerity plans at next week’s meeting.
Japanese production orders were 0.9% lower than expected in July, 2.5% and -1.5% earlier. The Chinese government then announced further restrictions on gambling companies and risk aversion that spread through stock markets.
Later in the session, Chinese retail sales grew 2.5% in August, with missing estimates at 7.0% and last month at 8.5%. At the same time, China’s industrial production was 5.3% in August, below the forecast of 5.8% and the previous result of 6.4%. Hong Kong’s Hang Seng index went into a deep deficit, as did China’s mainland indices.
Greenback found support against risky currencies, but fought against it Japanese yen. EUR/ USD continued testing at the lower end of the day. AUD / USD moved lower after Chinese data, but lacked enthusiasm and traded back in range.
Energy markets in Asia moved higher after rising natural gas prices in the last 24 hours. The emerging issue of such a significant increase is replacement. As each energy resource reaches its peak, markets are looking at other energy sources.
In front of the US are industrial production numbers and EIA / DOE oil the inventory report offers more crude oil-related movements this week than usual. The Canadian CPI must also be published.
EUR / USD Technical analysis
The euro is now trading in a wider range. In the short term, the range is defined by the last highest and lowest values, 1.1909 and 1.1664, respectively. These levels can provide some resistance and support to the approach.
The wider range is determined by the highest level of 1.2350 seen in January and the low price of 1.1603, which was traded in November last year. We are now closer to the bottom of this range. At the fault point 1.2093, the resistance level and the previous peak 1.2264 are possible.
– Written by Daniel McCarthy, Strategist at DailyFX.com
Use the or comments section below to contact Daniel @DanMcCathyFX Twitter