Dollar Weakness Before U.S. Holiday

Dollar Weakness Before U.S. Holiday


Overall, the market saw hints of dollar weakness at the start of the Asian session. There is likely to be lower volume seen during the next few sessions as it is a holiday in the U.S. and Canada which means the banks and stock markets will be closed. The European session will see one medium level release, German factory orders during the session.
The euro (Eur/Usd 1.4327) bounced higher after the employment reports last week. The pair is currently testing the highs achieved during the previous session at 1.4328. The next major resistance level for the pair is a little more than 100 pips away at 1.4350.
The pound (Gbp/Usd 1.6404) has moved past the highs of the previous two days at 1.6410 during the early part of the Asian session. The pair is now firmly entrenched between the 20 day moving average at 1.6396 and the 50 day moving average at 1.6440.

The aussie (Aud/Usd 0.8531) broke above the critical 0.8480 level that has held the pair up for the entire summer after the employment reports were released from the United States last week. The next major area of resistance, as seen on the daily chart, lies in the 0.8790 level. Meanwhile, support can be seen at the 50 day moving average at the 0.8200 level.


The cad (Usd/Cad 1.0844) fell like a lead weight during the last session as the dollar weakened with the employment reports. The pair found support at the S3 level last week, widening today's pivots drastically. The pair will see intermediate resistance at the 1.0875 area, while support will likely be found at 1.0790

The swissy (Usd/Chf 1.0590) found resistance as the pair tried to hold above the 20 day moving average all last week. The pair moved lower at the start of the trading week in Asia, finding slight support at 1.0580.

The yen (Usd/Jpy 93.12) is approaching the high achieved during the previous session at 93.25 during Asian trading hours. The pair had a slight bounce off near the neutral pivot point and is trading 20 pips higher at the moment

Nikkei Rises After U.S. Jobs Report

Current Futures: Dow -13.00, S&P -1.10, NASDAQ -0.75

Japanese stock markets were advancing early in the Asian session after The U.S. employment reports were released last Friday. The rise has been attributed to U.S. companies laying off fewer workers than had been expected in August. The Nikkei has advanced 104.82 points or 1.03 percent while the Australian S&P/ASX has risen 17.30 points or 0.39 percent. This gain breaks a three day losing streak seen in the Nikkei. Sony Corp was seen gaining 1.4 percent while Nissan Motors was just behind that with a 1.3 percent advance.

Overnight, the Japanese Nikkei added 104.82 points (1.03%) to 10,291.93. The Australian S&P/Asx advanced 17.30 points (0.39%) to 4,452.80

Crude oil for October delivery was recently trading at $67.81 per barrel, lower by $0.21.

Gold for October delivery was recently trading lower by $2.90 to $993.80.