U.S. and Canadian markets may be out today but that doesn’t mean we won’t see volatility!
Check out AUD/USD, which is seeing a shallow retracement on the 1-hour chart.
Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
- Australian job ads weaken as lockdowns stretch on
- Chinese regulators pledge tighter supervision, new rules for finance industry
- Asia shares at 6-week peak, oil skids on Saudi price cut
- Binance removes Singapore products on main platform after regulator’s warning
- Easing taper fears lift emerging market stocks to 6-week highs
- Dollar near one-month low on bets for later Fed taper
- Oil falls $1 after deep Saudi price cuts spur demand concerns
- German industrial orders surge on robust foreign demand
Upcoming Potential Catalysts on the Economic Calendar:
- U.S. and Canadian markets out on Labor Day bank holiday
- Eurozone’s Sentix investor confidence at 8:30 am GMT
- U.K. construction PMI at 8:30 am GMT
If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.
What to Watch: AUD/USD
In case you missed it, the dollar got a breather from its losses after Friday’s weak U.S. non-farm payrolls (NFP) weighed on the dollar because it gave Fed Chairman Powell and his friends an excuse to delay their tapering or at least not look happy to do it.The U.S. and Canadian markets will be out on Labor Day holiday today but that doesn’t mean that we won’t see volatility.
Risk-takers who think that traders will continue to price in the delay in the Fed’s tapering can check out the .7400 psychological handle near a key support and resistance zone on the 1-hour time frame.
Buying the Aussie won’t be without its risks, though. For one thing, markets expect downbeat remarks from Reserve Bank of Australia (RBA) when it publishes its monetary policies this week. Rising coronavirus cases in Australia and “recovery peak” concerns in China won’t help the comdoll either.
If today’s downswing extends to U.S. session trading, or if we see profit-taking ahead of the RBA’s event, then AUD/USD could dip below its short-term trend line support and revisit lower inflection points.