Market Roundup
• New Zealand Jul External Migration & Visitors 3.80%, 3.80% previous
• New Zealand Jul Permanent/Long-Term Migration 3,030,2,880 previous
• New Zealand Jul Visitor Arrivals (MoM) 2.2%,0.5% previous
Looking Ahead Economic Data (GMT)
• UK Construction Output (MoM) (Jul) 0.4% forecast, 0.5% previous
•U.K. Construction Output (YoY) (Jul) -1.0% forecast,-1.7% previous
•U.K. GDP (MoM) (Jul) 0.2% forecast,0.0% previous
•U.K.GDP (YoY) (Jul) 1.4% forecast, 0.7% previous
•U.K Index of Services 0.6% forecast, 0.8% previous
•U.K Industrial Production (MoM) (Jul) 0.3% forecast, 0.8% previous
•U.K Industrial Production (YoY) (Jul) -0.2% forecast, -1.4% previous
•U.K Manufacturing Production (MoM) (Jul) 0.2% forecast, 1.1% previous
•U.K Monthly GDP 3M/3M Change (Jul) 0.6% forecast, 0.6% previous
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Forecast
EUR/USD: The euro strengthened against the dollar on Wednesday as investors digested U.S. presidential debate between Donald Trump and Kamala Harris. The debate, which featured clashes over immigration, foreign policy, and healthcare, provided limited specific policy details but was rich in exchanges of criticism. As a result, the dollar weakened. Market attention now shifts to the U.S. inflation reading later in the day, though the Federal Reserve has emphasized that employment is currently a more critical focus than inflation. The euro gained 0.17% to $1.10385, recovering from its overnight slide to $1.10155 for the first time since Aug. 19. Immediate resistance can be seen at 1.1060(38.2%fib), an upside break can trigger rise towards 1.1116(23.6%fib).On the downside, immediate support is seen at 1.1014(50%fib), a break below could take the pair towards 1.0968 (61.8%fib).
GBP/USD: Sterling strengthened against the dollar on Wednesday following a highly anticipated U.S. presidential debate between Democratic Vice President Kamala Harris and Republican Donald Trump. The candidates clashed over issues such as abortion, the economy, immigration, and Trump's legal challenges in their contentious first debate. The debate left investors nervous as markets also prepared for U.S. inflation data, which could impact the Federal Reserve's policy decisions next week. Sterling rose to $1.3092, recovering from a drop to $1.3049 in the previous session, its lowest level since August 21.Immediate resistance can be seen at 1.3110(Daily high), an upside break can trigger rise towards 1.3156(23.6%fib).On the downside, immediate support is seen at 1.3064(38.2%fib), a break below could take the pair towards 1.3000(psychological level).
AUD/USD: Australian dollar declined on Wednesday, burdened by concerns over China's economy and weak commodity prices. Iron ore futures fell as traders weighed the impact of China’s latest trade data on steel demand against reduced global supply. Oil prices stabilized somewhat but remained near their lowest levels in three years following OPEC+'s downward revision of its demand forecast for this year and 2025. Looking ahead, markets are preparing for a critical U.S. inflation report, which could influence the size of the anticipated Federal Reserve rate cut this month.Immediate resistance can be seen at 0.6707(38.2%fib), an upside break can trigger rise towards 0.6748(Sep 4th high).On the downside, immediate support is seen at 0.6645(50%fib), a break below could take the pair towards 0.6596(61.8%fib).
NZD/USD: New Zealand dollar slipped lower against greenback on Wednesday as kiwi dollar was pressured by declining commodity prices and concerns about the Chinese economy. Data this week has shown Chinese exports solid but imports sluggish and consumer price rises falling short of market expectations, pointing to lacklustre domestic demand.looking ahead ,investors are awaited U.S. inflation data for more clues on the size of a likely Federal Reserve interest rate cut next week.At (GMT 05:11) Kiwi dollar was trading at down 0.03 % at $0.6147 against the U.S. dollar. Immediate resistance can be seen at 0.6181(38.2%fib), an upside break can trigger rise towards 0.6229 (Sep 5th high).On the downside, immediate support is seen at 0.6125(50%fib), a break below could take the pair towards 0.6060(61.8%fib).
USD/JPY: The dollar hit eight month low against the yen on Wednesday as yen was boosted from comments from Bank of Japan board member Junko Nakagawa, who reiterated that the central bank would continue to raise interest rates if the economy and inflation move in line with its forecasts. Her comments helped the yen hit its highest since the start of the year against the dollar, as markets took them as a renewed sign the BOJ could raise rates in coming months. The dollar stood at 141.015 yen on Wednesday, down about 1%, after briefly falling below 141 for the first time since Jan. 2. The BOJ is set to leave rates unchanged at its next meeting on Sept. 20, but more than half the economists polled last month predict further tightening by the year's end. Strong resistance can be seen at 143.71 (Sep 9th high), an upside break can trigger rise towards 145.00 (Psychological level). On the downside, immediate support is seen at 141.90(23.6%fib), a break below could take the pair towards 141.49 (Lower BB).
Equities Recap
Asian markets slipped on Wednesday after Democratic Vice President Kamala Harris and Republican Donald Trump clashed in a keenly-awaited U.S. presidential debate.
Japan's Nikkei fell 0.8%, while Chinese stocks eased again. The Shanghai Composite index was 0.75% lower
Commodities Recap
Gold prices steadied on Wednesday as investors awaited U.S. inflation data for clues about the potential size of the Federal Reserve's interest rate cut next week.
Spot gold held its ground at $2,518.22 per ounce by 0319 GMT. U.S. gold futures rose 0.2% to $2,547.10.
Crude prices bounced on Wednesday as concerns about Tropical Storm Francine disrupting supply of oil outweighed worries about demand.
Brent crude futures climbed 39 cents, or 0.6%, to $69.58 a barrel by 0031 GMT while U.S. crude futures were at $66.19 a barrel, up 44 cents, or 0.7%.
