Forexlive Americas FX news wrap: Durable goods orders soar
Forex news for North American trading on August 26, 2020
- S&P and NASDAQ closed at record levels once again
- Crude oil futures settle at $43.39
- EU trade negotiator Phil Hogan to resign today - report
- Germany cancels next week's planned high-level Brexit talks
- Laura grows into Category 4 hurricane as it approaches coast
- US CDC reports another 37,086 new virus cases and 1142 deaths
- European shares end the session higher
- Italy is seeing the highest case count since May 12
- Florida case count rises by 3220
- More from Fed's Barkin: There clearly is some risk is valuations get elevated
- US crude oil inventories -4.689M vs. -2.587M estimate
- Fed's Barkin: Jobs in most sectors down 5% to 10%
- China launched to mid missiles into the South China Sea on Wednesday morning: Source
- BOC Wilkins: Pandemic reveals limits to Bank of Canada policy
- US restricts some Chinese visas over South China Sea activities
- US June prelim durable goods orders +11.2% vs +4.7% expected
- The NZD is the strongest and the EUR is the weakest as NA traders enter for the day
US stocks open mixed with the Dow industrial average down, the S&P near unchanged, and the NASDAQ index higher. By the end of the day all 3 indices closed near their highs for the day, with the NASDAQ index leading the charge with a 1.73% gain. That index is up 30.0% on the year. The S&P index also gained over 1% (up 1.02%). Both the NASDAQ and the S&P closed at record levels and made new all-time intraday highs once again.
The Dow industrial average lagged but still rose by 0.3%. In the process, the index got within 1% of the 2019 closing level.
European shares also closed higher with the German DAX leading the way with a near 1% gain on the day below is a summary of the ranges and changes for the major stock indices in Europe and North America.
In the forex, risk on flows helped to propel the NZD and AUD higher, with the NZD by far the strongest of the majors. On the downside, the CHF, EUR and USD fought each other for the weakest of the majors with the CHF winning that race. Below is a ranking of the major currencies along with the percentage changes of each currencies vs. each other.
From a technical perspective:
- EURUSD. The EURUSD fell into the early New York session with the price dipping below swing level support between 1.17795 and 1.17837. The low reached 1.17714 snapping back higher. The upside stalled near the 38.2% retracement of the move down from the August 18 high to the August 21 low. That level comes in at 1.18342. The price is currently trading at 1.18309. In the new trading day breaking and staying above the 38.2% retracement level would target the 200 hour moving average 1.1848. Getting above that level would open up the door for further upside momentum. On the downside watch the 1.1801 to 1.18117 for support. Should the 1.1800 below be broken, a move back down toward the 1.17795 level would be in the cards
- GBPUSD: The GBPUSD is closing in a resistance area defined by the January and March swing highs between 1.3199 and 1.32116. The price is currently trading at 1.3211 as the end of day approaches. Getting above that swing area was not a problem last week as 4 of the 5 trading days traded above and below the level. The problem is staying above the level for the buyers. Traders in the new day will use that level as a barometer for the bias. Move above and stay above is more bullish. Stay below would be more bearish
- USDJPY: The USDJPY is trading at 105.97 into the close. That is right above the 200 hour moving average at 105.95, but below its 100 hour moving average at 106.00. The narrow 5 pip spread between the 2 moving averages has both buyers and sellers sitting on edge as to which way the new day will push the price. Today, the sellers were more in control with the USDJPY down -0.38% on the day.
- NZDUSD: The NZDUSD March to the upside today and is also closing near its high levels for the day at 0.66222. At that level, the market price is testing a topside channel trendline on the daily chart. Like the GBPUSD and the USDJPY, traders will be watching that level for bias defining clues. Move above would be more bullish. Stay below would be more bearish
- USDCAD: The USDCAD it is closing lower. However, the sellers more force to cover in the last few hours of trading after the low for the day took out the August 19 low at 1.31324 and the August 24 low at 1.3134 by only a couple pips. The inability to keep the momentum running to the downside, led to some short covering into the close. The price is currently trading at 1.3148. In the new trading day watch the 1.3158 to 1.3170 as potential resistance. Stay below and we should see a break of the floor between 1.3131 and 1.3134. On the topside get above 1.3168 and a retest of the 100 hour moving average 1.3186 and 200 hour moving average at 1.3193 would be eyed.
- Spot gold rose $26.17 or 1.36% to $1954.38. That is near the high price for the day
- Spot silver is higher by $0.89 or 3.39% to $27.42. It too is near the high price for the day
- WTI crude oil futures are up $0.07 or 0.16% of $43.42. The price remains above its 200 day moving average at $43.25 keeping the buyers more in control.