FxWirePro: AUD/USD gains modestly as Geopolitical risks keep markets cautious 
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Market Roundup
• French 12-Month BTF Auction 2.860%, 2.832% previou
•French 3-Month BTF Auction 2.533%, 2.495% previous
•French 6-Month BTF Auction 2.655%, 2.675% previous
•US Chicago PMI (Aug) 47.1, 57.6 previous
•Dallas Fed Mfg Business Index (Aug) 11.6, 1.3 previous
•US 3-Month Bill Auction 3.770%, 3.715% previous
•US 6-Month Bill Auction 3.885%, 3.790% previous
Looking Ahead Economic Data (GMT)
• 00:30 Japan au Jibun Bank Manufacturing PMI (Aug) 55.1 forecast, 55.1 previous
•01:30 Australia Current Account (Q2) -29.7B forecast, -27.1B previous
•01:30 Australia Building Approvals (MoM) (Jul) -4.8% forecast, 7.2% previous
•01:30 Australia Net Exports Contribution (Q2) -0.8% previous
•01:30 Australia Building Approvals (YoY) (Jul) 28.80% previous
•01:30 Australia Private House Approvals (Jul) 0.4% previous
•01:45 China Caixin Manufacturing PMI (MoM) (Aug) 51.5 forecast, 50.9 previous
Looking Ahead Events And Other Releases (GMT)
• No Events Ahead
Currency Forecast
EUR/USD : The euro edged higher against dollar on Monday after data showed German inflation rose in August. German inflation rose in August on higher energy prices due to the Iran conflict, but the increase was less than expected and core inflation stabilised, easing concerns that price pressures from the war could spread more widely through the economy.Inflation rose to 2.9% year-on-year from 2.8% the month before, preliminary data from the federal statistics office showed on Monday. renewed Gulf tensions. Meanwhile, finance leaders from the G20 gather in North Carolina on Monday and Tuesday as elevated energy and commodity prices linked to the Iran war weigh on global growth prospects. Immediate resistance can be seen at 1.1680(38.2%fib), an upside break can trigger rise towards 1.1734(Higher BB).On the downside, immediate support is seen at 1.1636(Daily low), a break below could take the pair towards 1.1585(38.2%fib).
GBP/USD: Sterling initially gained but gave up ground as investors assesed latest flare-up in the Middle East.Military clashes between the U.S. and Iran resumed in the Middle East, disrupting shipping through the Strait of Hormuz and hindering oil flows.Looking ahead, traders will be focused on jobs and inflation data for August that is due before the Fed’s September 15-16 meeting for clues on whether a hike is likely.Reuters’ median economist estimate sees U.S. employers adding 55,000 jobs in August.August producer price inflation data is due on September 10, with consumer inflation figures following on September 11.Immediate resistance can be seen at 1.3604(Aug 28th high), an upside break can trigger rise towards 1.3670(23.6%fib).On the downside, immediate support is seen at 1.3526(38.2%fib), a break below could take the pair towards1.3481(Aug 14th low).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Monday as oil prices rose and investors executed month-end hedging transactions.Investors often execute currency transactions around the end of the month to manage changes in their foreign exchange exposure due to portfolio movements.Oil prices, a key Canadian export, rose as renewed U.S.-Iran military action raised concerns over global supply disruptions. U.S. crude futures were up 2.8% at $85.72 a barrel.Investors expect the Bank of Canada to keep its benchmark interest rate unchanged at 2.25% on Wednesday, as rising U.S.-Canada trade tensions offset stronger-than-expected second-quarter economic growth. Immediate resistance can be seen at 1.4029(38.2%fib), an upside break can trigger rise towards 1.4043(SMA 20).On the downside, immediate support is seen at 1.3927(61.8%fib), a break below could take the pair towards 1.3909(Lower BB).
USD/JPY: The U.S. dollar dipped against yen on Monday as the yen strengthened amid growing expectations of further central bank rate hikes.Markets have priced in a near certainty that the Bank of Japan will raise rates at its meeting next month.BOJ Governor Ueda said last month that the central bank would focus on rising inflation risks and could accelerate the pace of rate hikes if financial conditions remained too loose.The yen’s weakness is creating challenges for Japanese policymakers by raising import prices and adding to inflationary pressures. The currency has been weighed down in part by the BOJ’s gradual rate-hike cycle, which has maintained a wide rate differential with the U.S. Immediate resistance can be seen at 160.00(Psychological level), an upside break can trigger rise towards 160.73(Higher BB).On the downside, immediate support is seen at 159.54(Daily low) a break below could take the pair towards 159.05(SMA 20).
Equities Recap
European equities fell on Monday amid renewed U.S.-Iran strikes that pushed up oil prices and bond yields, but the STOXX 600 remained on track for its fifth consecutive monthly gain..
UK's benchmark FTSE 100 closed up by 0.29 percent, Germany's Dax ended down by 1.17 percent, France’s CAC finished the day down by 0.79 percent.
U.S. equities fell on Monday as higher oil prices linked to the conflict raised inflation concerns and strengthened expectations for tighter policy.
Dow Jones closed down by 0.70% percent, S&P 500 closed down by 0.33% percent, Nasdaq settled down by 0.12% percent.
Commodities Recap
Gold fell on Monday, trading near a two-week low as hawkish comments from Fed Chair Kevin Warsh boosted expectations of a rate hike, while rising oil prices heightened inflation concerns.
Spot gold fell 0.4% to $4,433.19 per ounce by 01:39 p.m. EDT (1739 GMT), having touched its lowest level since August 19 earlier.U.S. gold futures for December delivery dropped 1.1% to settle at $4,481.50.
Oil prices settled more than 2.5% higher on Monday after a resumption of military action between the U.S. and Iran rekindled market concerns about global supply disruption, as the conflict extended into its sixth month.
Brent crude futures settled up $2.39, or 2.71%, to $90.49 a barrel. U.S. West Texas Intermediate crude settled up $2.36, or 2.83%, to $85.76.
