The Forex Market Insight Report shows charts on different major currencies and commodities, with brief commentaries on how new data releases and news cause movements in the market.

Headline:

  • Markets see late reversal from early losses as greenback weakens following sluggish Treasury debt auction
  • Early losses driven by USD strength, with silver initially down an unbelievable 20% in 24 hours
  • Commodities stage late recovery rally from the lows, with oil trading back above US$100 and gold above $1500
  • AUDUSD and EURUSD both gain more than 100 pips from the lows
  • Overnight data sees US PPI and retail sales in line with expectations, but UK data disappoints
  • In equity markets, the FTSE bounced strongly from early lows to close down 0.5%, while Dow and S&P were up 0.5% each, while the Nasdaq gained 0.6%

AUD/USD
AUD was initially sold lower in Europe as the market continued with negative sentiment after the bad jobs numbers but support was yet again found under 1.0600 and most traders are now starting to feel that 1.0550/1.0600 could be the base for the time being. For the bullish sentiment to return we need a convincing break back through 1.0700

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XAU/USD
The commodity sell-off continued in Europe and it was only weak interest in the overnight US bond auction and the subsequent USD reversal helped stave off further commodity losses. We open the Asian session back towards an important resistance point around 1510. Traders seem initially happy selling here but cautious of a break higher through 1510.00.

EUR/USD
EUR continues to struggle even though there was a little bit of a rally on the lacklustre treasury auction. Most traders are seeing the bounce as an opportunity to get short at better levels and happy being short unless we break back up through 1.4250 initially with further resistance around at 1.4320/30 looking for a clean break of 1.4150 in the next few sessions.

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GBP/USD
GBP continued to struggle to hold on to any gains and it was the sellers that won the battle during Europe. A small bounce on the US treasury auction was met with solid resistance which has helped keep the bearish tone and it is expected to continue in Asia today. A solid break of 1.6200 is further confirmation of the bearish sentiment continuing.

USD/JPY
USD/JPY continues to reward patient traders and the dip was supported again last night. It is starting to congest around this 81.00/30 region and looks like it will be a make or break night tonight in the USD/JPY with sentiment being to break topside but a break of last night’s lows (80.70/80) could be a significantly bearish signal and tempt the sellers to re-emerge.

AUD/JPY
AUD/JPY looks to be in the middle of a sideways period of consolidation waiting for the signal to move one way or the other. Traders seem content to be patient and wait for the extremes at the moment looking to buy towards 85.50 and sell the rally towards 87.00.

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OIL
Oil continued lower overnight as commodities were hit during Europe. The bounce has given the bears the opportunity to get short at better levels and the bearish sentiment is quite strong so long as we stay below 100.00/50 region in the next 24 hours with traders calling for a break of 95.00 into next week.

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