Daily Forex Analysis - 1st September 2021

USD Overview (01 September 2021)

Yesterday, USD weakened against most major currencies except CAD and JPY.

The Conference Board Consumer Confidence data (Actual: 113.8, Forecast: 123.4, Previous: 125.1 revised from 129.1) released yesterday indicated a decline in the level of confidence from the surveyed households on the U.S. economy due to rising concerns on the Delta variant and high inflation.

The ADP Non-Farm Employment Change data (Forecast: 620K, Previous: 330K) will be released later at 2015 (GMT).

The ISM Manufacturing PMI data (Forecast: 58.5, Previous: 59.5) will be released later at 2200 (GMT+8).

FOMC committee member Bostic will be speaking tomorrow at 0000 (GMT+8). During this time, there may be volatility in USD.

NZD/USD Outlook (01 September 2021)

Overall, NZD/USD is ranging across.

NZD/USDs next support zone is at 0.69500 and the next resistance zone is at 0.71000.

Look for buying opportunities of NZD/USD.

AUD/USD Outlook (01 September 2021)

Overall, AUD/USD is ranging across. Recently, AUD/USD trended into the resistance zone of 0.73300.

The Australian Building Approvals m/m data (Actual: -8.6%, Forecast: -5.0%, Previous: -6.7%) released yesterday indicated continued decline in the number of building permits issued.

The Australian GDP q/q data (Forecast: 0.6%, Previous: 1.8%) will be released later at 0930 (GMT+8).

Currently, AUD/USD is testing the resistance zone of 0.73300 and the next support zone is at 0.72200.

Look for buying opportunities of AUD/USD if it breaks the resistance zone of 0.73300.

USD/JPY Outlook (01 September 2021)

Overall, USD/JPY is ranging across.

The Japanese Consumer Confidence data (Actual: 36.7, Forecast: 36.1, Previous: 37.5) released yesterday indicated a slight decline in the surveyed households view on the Japanese economy.

Currently, USD/JPY is testing to break above the key level of 110. Its next support zone is at 108.800 and the next resistance zone is at 110.800.

Look for buying opportunities of USD/JPY if it breaks above the key level of 110.

EUR/USD Outlook (01 September 2021)

Overall, EUR/USD is ranging across. Recently, EUR/USD broke above the key level of 1.18.

The eurozone CPI flash estimate y/y data released yesterday indicated a strong rise in annual inflation in July, surpassing the European Central Banks 2% inflation target.

- CPI Flash Estimate y/y (Actual: 3.0%, Forecast: 2.7%, Previous: 2.2%)

- Core CPI Flash Estimate y/y (Actual: 1.6%, Forecast: 1.5%, Previous: 0.7%)

Yesterday, European Central Bank governing council member Robert Holzmann highlighted in an interview that the central bank should begin discussing quantitative easing tapering during the monetary policy meeting next week as the euro-area economy is recovering broadly as expected.

The eurozone Unemployment Rate data (Forecast: 7.6%, Previous: 7.7%) will be released later at 1700 (GMT+8).

Currently, EUR/USD is testing to break below the key level of 1.18. Its next support zone is at 1.17600 and the next resistance zone of 1.19000.

Look for buying opportunities of EUR/USD if it bounces up from the key level of 1.18.

GBP/USD Outlook (01 September 2021)

Overall, GBP/USD is trending downwards. Recently, GBP/USD bounced off the resistance zone of 1.38000.

GBP/USDs next support zone is at 1.36000 and the next resistance zone is at 1.38000.

Look for selling opportunities of GBP/USD.

USD/CAD Outlook (01 September 2021)

Overall, USD/CAD is ranging across.

The Canadian GDP m/m data (Actual: 0.7%, Forecast: TBA, Previous: -0.5% revised from -0.3%) released yesterday indicated a rebound from economic contraction in June as COVID restrictions started easing.

The OPEC+ meeting will be held today. Yesterday, Kuwaits oil minister said that the OPEC+ may reconsider the production hike agreement made last month. This is due to the continued rise in COVID cases which may impact the demand of oil. During this time, there may be volatility in CAD.

Currently, USD/CAD is testing the support zone of 1.26100 and the next resistance zone is at 1.29000.

Look for short-term selling opportunities of USD/CAD if it breaks the support zone of 1.26100.

GBP/JPY Outlook (01 September 2021)

Overall, GBP/JPY is trending downwards.

Currently, GBP/JPY is bouncing off the support zone of 151.000 and the next resistance zone is at 153.800.

Look for short-term buying opportunities of GBP/JPY.

EUR/JPY Outlook (01 September 2021)

Overall, EUR/JPY is ranging across. Recently, EUR/JPY trended into the resistance zone of 130.000.

The eurozone CPI flash estimate y/y data released yesterday indicated a strong rise in annual inflation in July, surpassing the European Central Banks 2% inflation target.

- CPI Flash Estimate y/y (Actual: 3.0%, Forecast: 2.7%, Previous: 2.2%)

- Core CPI Flash Estimate y/y (Actual: 1.6%, Forecast: 1.5%, Previous: 0.7%)

Yesterday, European Central Bank governing council member Robert Holzmann highlighted in an interview that the central bank should begin discussing quantitative easing tapering during the monetary policy meeting next week as the euro-area economy is recovering broadly as expected.

The eurozone Unemployment Rate data (Forecast: 7.6%, Previous: 7.7%) will be released later at 1700 (GMT+8).

Currently, EUR/JPY is testing the resistance zone of 130.000 and the next support zone is at 128.500.

Look for buying opportunities of EUR/JPY if it breaks the resistance zone of 130.000.