EUR/USD: the euro zone currency is holding at the level of 1.0000
The Euro shows multidirectional dynamics, approaching the level of 1.0000 again. The trading week started with the bulls' attempts to get higher than the psychological level, but failed and now it was decided to wait for the outcome of the U.S. Federal Reserve's meeting minutes.
The U.S. regulator will hold a meeting on September 20-21, during which the interest rate can be increased up to 50-75 basis points. However, among the forecasts, a tougher measure of interest rate increase by 1.00% at once is more and more often admitted, but the assessment of such probability does not exceed 25%. Economists also want to see data from Europe on inflation in August. The current expectations do not allow for a sharp dip in inflation, allowing it to continue near the record 9.1% mark. Energy prices declined modestly, which was offset by an increase in the price of food commodities.
- Resistance levels: 1.0000, 1.0050, 1.0100, 1.0150.
- Support levels: 0.9950, 0.9900, 0.9850 and 0.9800.
USD/CAD: The U.S. dollar made a new high in 2020
"The American" is developing an upward trend since Tuesday, where the USD/CAD instrument was near the local low of August 26. In the present, the asset updated the record high of the last two years due to the statistics from the U.S. on inflation, which did not reflect the expected rate of decline. For August, the annual consumer price level in the United States fell to 8.3% from 8.5%, against expectations of a decline to 8.1%, but excluding the food and energy group, inflation showed a steady increase to 6.3% from 5.9%. Investors have already adjusted their preliminary estimates on the U.S. Federal Reserve's next steps with a plurality expressing confidence of a 0.75% hike in the key index at the regulator's next meeting and some even admitting a more decisive 1.00% correction at once.
- Resistance levels: 1.3250, 1.3300, 1.3350 and 1.3400.
- Support levels: 1.3200, 1.3150, 1.3100, 1.3050.
AUD/USD: investors disappointed by the labor market statistics
Due to continued strengthening of the American currency, AUD/USD is testing 0.6717.
The Australian currency showed negative dynamics during the last sessions, which was accentuated by yesterday's employment report, showing a 3.5% increase in the unemployment rate, which was the first such increase since September 2021. In quantitative terms, there were 14.0 thousand more unemployed, strengthening the target to 487.7 thousand unemployed, the youth segment of the population showed an increase to 8.4%, in the ratio of employed to the number of citizens strengthened from 64.2% to 64.3%. Full-time employment added 58.8 thousand workers, but part-time employment decreased by 25.3 thousand, because the population wants to work in a stable place of work against the backdrop of rising costs of living and debt.
- Resistance levels: 0.6770 and 0.6916.
- Support levels: 0.6684, 0.6530.
Oil market review
In the trading session of Asian countries, the "black gold" of WTI grade shows the sideways trend, testing the level of 85.00.
The day before it became known about the decision between the G7 countries and the EU to ban transportation of oil from Russia since the first days of December, and petroleum products from February 5 next year under the agreement to limit the cost of goods on the commodity market. Thus, the parties to the agreement intend to deprive the Russian economy of the flow of funds to the budget due to its military invasion of Ukraine and prevent a rapid increase in the cost of oil in the future. The U.S. Treasury Department warned that those countries that have expressed support for the initiative, but blocked its implementation from their side risk legislative responsibility within the jurisdiction, carried out the use of the price cap. Nevertheless, according to Bloomberg, Russia systematically continues to ship up to 3.32 million barrels of fuel, 30% of which goes to the EU.
- Resistance levels: 85.00, 86.95, 90.00, 91.93.
- Support levels: 83.00, 81.00, 80.00, 79.00.