News & Analysis

EU / UK open FX analysis – AUD, JPY, USD, EUR

8 September 2023 By Lachlan Meakin

Share

EU and UK indices are looking to open slightly stronger despite a weak lead from the Asian session. Aussie and Asian indices finish in the red after US-China tech-related frictions and disappointing Japanese GDP revisions weighed on risk sentiment.

Asian session wrap – FX Markets

The USD was softer with DXY retreating from extreme RSI overbought levels to push below the key 105.00 level. Dovish commentary from the Fed’s Logan ahead of the Fed blackout window and strength in the Dollars major counterparts outweighing the sour risk sentiment which would normally see the Dollar benefit from haven flows.

EUR bounced back after a sell-off on Yesterday’s dismal German data. EURUSD pushing back above the 1.0700 level after finding support at the June lows.

USDJPY was choppy with early drop due to the risk-off mood and MoF jawboning saw the pair test the S/R level at 146.63 before bouncing back as the Asian session progressed. Japanese Finance Minister Suzuki stating in comments that rapid FX moves are undesirable and warned the Japanese MoF won’t rule out any options (intervention?)

AUDUSD rallied to test the key 0.6400 S/R level, despite the risk-off tone and recent commodity pressure. A weaker USD and some technical support from the daily trendline seeming to be the key drivers.

Looking ahead, the main risk events data wise will be Canadian jobs figures later today and Chinese CPI released on Saturday.

Ready to start trading?

Disclaimer: Articles are from GO Markets analysts and contributors and are based on their independent analysis or personal experiences. Views, opinions or trading styles expressed are their own, and should not be taken as either representative of or shared by GO Markets. Advice, if any, is of a ‘general’ nature and not based on your personal objectives, financial situation or needs. Consider how appropriate the advice, if any, is to your objectives, financial situation and needs, before acting on the advice. If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for that product before making any decisions.