Morning Preview: USD Roars Back to Life - Forex News by FX Leaders

Morning Preview: USD Roars Back to Life

Posted Thursday, August 31, 2017 by
Rowan Crosby • 2 min read

It was a busy night in overnight trade as the USD found some footing and came back to life. Strong employment data along with positive GDP out of the US, sent equities bouncing and risk came back into favor.

Strong ADP employment helps set us up for the potential of more good news to come on the jobs front. This is because a lot of attention is still focused on nonfarm payrolls out of the US, which is scheduled to be released on Friday.

There’s a string of data out of Asia today, however, the key date of interest is Chinese manufacturing PMI. This will have a significant impact on the AUD because of the importance that the Chinese economy has to Australia. There’s also minor data out of Japan and New Zealand, so we could be in for a very stop-start type of session.

Yen 31st

USD/JPY is Powering

In terms of the technical picture, I’m interested to see if the USD/JPY has any more upside left in it. I’ve spoken quite a bit about the 109 level and just how powerful it’s been in providing support.

We tested it once again after the North Korean missile test, however it held easily and we’ve got a powerful rebound that has ripped through 110.00. I’ll be focused on seeing if we can get any follow through in Asian trade due to the string of data coming out. There is certainly the potential for a bounce to 111.00.

In that case, I’ll be looking to enter prior to a test of the highs and look for a run through 111.00. If we hold above 110.50 then look to buy a bullish candle after a pullback.

Key Levels

Support

Resistance

109.00

110.50

108.40

111.00

108.26

111.42

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About the author

Rowan Crosby // Asia-Pacific Analyst
Rowan Crosby is a professional futures trader from Sydney, Australia. Rowan has extensive experience trading commodities, bonds and equity futures in the Asian, European and US markets. Rowan holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.
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