Forex Market View for September 3, 2016, Commodities Lower
Commodities lower by another large fall in oil prices but with industrial metals surging higher.
Brent crude is seeing its first green candle in the week, up 0.75% or 35 cents at $45.78, after seeing a more than $4 slide in the week owing to supply concerns.
Japanese Finance Minister Aso was on the wires expressing concerns that business spending has not picked up as expected and the companies are using excess cash for wages and spending.
Australia’s Q2 GDP growth expected to ease to 0.3% in the quarter (down from 1.1%), based on economic partials, largely due to a smaller contribution from net exports.
US labor market report for August, which will be important for the Fed’s rate decision but it is less interesting with ISM manufacturing below 50.
US August ISM disappointed, falling to 49.4 from 52.6 last month and was the first reading below 50 since February and highlights that manufacturing continues to struggle.
People’s Bank of China deputy governor Yi Gang said that despite the recent two-way action in Yuan, the current has remained basically stable.
USD/JPY’s ongoing winning streak lost legs at 104 handle a day before, with the major now defending moderate gains on 103 handle ahead of the US payrolls data due later today.
AUD/USD pair has now risen to 50-day SMA and testing top end of the weekly trading range.
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