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Tuesday, 1 September 2020
HEADLINES
- Dollar nurses losses on rate outlook, Aussie looks to RBA
- Asian stocks edge lower after Wall Street dips in month-end trade
- Oil dips as prices struggle to break through demand uncertainty
Major Currency levels at 8:46 am
| Currency | BID | ASK |
| EUR/USD | 1.1988 | 1.1991 |
| USD/JPY | 105.62 | 105.65 |
| GBP/USD | 1.3405 | 1.3409 |
| USD/CHF | 0.9011 | 0.9016 |
| AUD/USD | 0.7407 | 0.7408 |
| NZD/USD | 0.6761 | 0.6765 |
| USD/INR | 73.25 | 73.26 |
| XAU/USD | 1,987.51 | 1,987.92 |
CURRENCIES
The dollar languished near multi-year lows against most major currencies on Tuesday as the Federal Reserve’s new policy framework continued to fuel bets that U.S. rates will stay lower for longer than other countries.
The Australian dollar traded near a two-year high against the greenback ahead of a Reserve Bank of Australia (RBA) policy meeting later on Tuesday to gauge policymakers’ views on the economy. Against a basket of six major currencies, the dollar index slid on Monday to a two-year low at 91.989.
USD / INR TECHNICAL LEVELS
Yesterday USD / INR touched 73 level and then bounced back to 73.70 levels before closing at 73.50. In a rare comment on the exchange rate, the RBI yesterday said the rupee’s appreciation is helping in containing imported inflation pressures.
| Resistance 2 | 73.83 | ( 7 Day Moving Average ) |
| Resistance 1 | 73.43 | ( Bollinger Band ) |
| Current Level | 73.25 / 26 | |
| Support 1 | 73.00 | ( Big Figure ) |
| Support 2 | 72.54 | ( 18 Month Moving Average ) |
EQUITY
Asian stocks were set to weaken on Tuesday following a softer Wall Street close while the dollar slipped as markets digested new Federal Reserve comments that suggested rates will stay low for an extended period.
Yesterday Indian Equities corrected sharply after implementation of new margin norms by SEBI. Australia’s S&P/ASX 200 lost 0.89% in early trading, while Japan’s Nikkei fell 0.22%, Hong Kong’s Hang Seng index futures lost 0.38%.
| Symbol | Last | Change | Change % |
| SGX Nifty | 11,429.20 | 69.45 | 0.61% |
| Dow 30 | 28,430.10 | -223.82 | -0.78% |
| S&P 500 | 3,500.31 | -7.70 | -0.22% |
| Nasdaq 100 | 12,110.70 | 114.84 | 0.96% |
| FTSE 100 | 965.00 | -7.00 | -0.72% |
OIL
Oil prices dropped on Monday, with Brent slipping from a five-month high as global demand remained below pre-COVID levels while U.S. production edged up.
Brent crude futures settled at $45.28 a barrel, down 53 cents, or 1.2%. U.S. West Texas Intermediate crude settled at $42.61 a barrel, down 36 cents, or 0.8%.Brent still closed out August up 7.5% for a fifth successive monthly price rise. WTI logged a fourth monthly gain at 5.8% after hitting a five-month high of $43.78 a barrel on Aug. 26 when Hurricane Laura struck.
MAJOR ECONOMIC EVENTS FOR TODAY
| Time | Country | Event | Forecast | Previous |
| 11:30 | EUR | German Retail Sales (MoM) (Jul) | -3.3% | -1.6% |
| 13:25 | EUR | German Unemployment Rate (Aug) | 6.4% | 6.4% |
| 13:25 | EUR | German Manufacturing PMI (Aug) | 53.0 | 51.0 |
| 13:25 | EUR | German Unemployment Change (Aug) | 1K | -18K |
| 13:30 | EUR | Manufacturing PMI (Aug) | 51.7 | 51.7 |
| 14:00 | GBP | Manufacturing PMI (Aug) | 55.3 | 55.3 |
| 14:30 | EUR | Unemployment Rate (Jul) | 8.0% | 7.8% |
| 14:30 | EUR | CPI (YoY) (Aug) | 0.2% | 0.4% |
| 14:30 | EUR | Core CPI (YoY) | 1.2% | |
| 14:30 | EUR | CPI (MoM) (Aug) | -0.4% | |
| 19:15 | USD | Manufacturing PMI (Aug) | 53.6 | |
| 19:30 | USD | ISM Manufacturing PMI (Aug) | 54.5 | 54.2 |
| 19:30 | USD | ISM Manufacturing Employment (Aug) | 45.8 | 44.3 |
