Dollar Strength Seen During Session

Dollar Strength Seen During Session


Overall, the major pairs were pushed to new swing points during the Asian session. This is the second consecutive Asian session that has seen immense volatility. Commodities were declining while the futures numbers were printing small gains and losses. Machinery orders in Japan unexpectedly rose during August after hitting a record low. Orders climbed 0.5 percent during July.



The euro (Eur/Usd 1.4770) has tested the neutral swing point at 1.4760 at the start of the trading session. The pair had a busy days putting in new levels of support at 1.4685, and 1.4720. Meanwhile, resistance was found at the 1.4820 level.



The pound (Gbp/Usd 1.6050) has also tested the neutral swing point at 1.6050 during Asian trading. The pair spent the past day steadily gaining on the dollar. The pair finally found resistance at the 1.6120 level late in the U.S. session. From there the pair found support at 1.6050 and 1.5930.



The aussie (Aud/Usd 0.9047) has been weakening since hitting a new yearly high for the third day in a row. The new yearly high sits at 0.9090 and the pair has given back nearly 60 pips to find mild support at 0.9030. Below that the pair has support at the 0.8970 level.



The cad (Usd/Cad 1.0522) has been trading near the low of the previous day at 1.0504 during the Asian session. The pair is coming upon slight resistance near the neutral swing point at 1.0550 and above that at 1.0630 should the pair continue weakening.



The swissy (Usd/Chf 1.0278) has broken above the 1.0280 resistance level which was put in place at the end of the U.S. session. The pair has been moving higher since finding support at 1.0230. The next level of resistance on the pair is located near the 20 day moving average at 1.0310.



The yen (Usd/Jpy 88.93) has surged higher during the Asian session. The pair quickly surpassed the neutral swing point at 88.45 and then burst through the previous day's high at 88.70 before running into resistance at the very logical 88.88 level.



Global Market Wrap: Nikkei Advancing In Asia

Equity Futures: Dow +3.00. S&P +0.20. NASDAQ -2.75. Japanese Nikkei +30.00. German Dax -15.00



Stock markets throughout Asia were trading mixed for a second night. The Japanese Nikkei was increasing early in the session after a job loss report in the United States has shown that jobless claims have fallen to a ten month low. The Australian S&P/ASX was declining slightly at the open by 5.10 points. Most sectors were gaining, with banks leading and technology closely behind.



Machinery orders in Japan unexpectedly rose during August after hitting a record low. Orders climbed 0.5 percent during July. The sudden jump has been attributed to large government stimulus spending. Despite this increase in orders many companies throughout Japan are still looking for ways to cut costs and are closing plants and cutting wages to maintain the bottom line.



The MSCI Asia Pacific Index has gained 1.47 points or 1.25 percent during the session.



Overnight, the Japanese Nikkei advanced 47.61 points (0.48%) to 9,880.08. The Australian S&P/Asx was declining 5.10 points (-0.11%) to 4,752.90.



Crude oil for November delivery was recently trading at $71.41 per barrel, lower by $0.28.



Gold for November delivery was recently trading lower by $5.00 to $1,051.30.