Technical Analysis Report By Our Expert – 31 August 2022
31 Aug 2022
GOLD SET FOR THE FIFTH MONTH OF LOSSES
Asian Pacific markets extended the global stocks selloff on Wednesday. The Shanghai Composite is down 0.75% at 3,202.94. Overall, the Singapore MSCI is down 1.03% at 289.30. Over in Hong Kong, the Hang Seng Index is up 0.07% at 19,885.00. In Japan, the Nikkei 225 is down 0.53% at 28,040.00, while the Topix index is down 0.41% at 1959.00. South Korea’s Kospi is up 0.74% at 2,469.12. Australia S&P/ASX 200 down 0.24% at 6981.80.
Top News of the Day:
Gold prices fell on Wednesday and were set for a fifth straight month of losses amid fears of aggressive policy tightening by the Federal Reserve, while copper rose as Chinese manufacturing activity improved slightly in August. The data also comes ahead of U.S. nonfarm payrolls, due on Friday. A strong reading is likely to sway the Fed towards more aggressive policy tightening.
Market Summary as per 30/08/2022:
European equities Tuesday closing. The DAX futures contract in Germany traded up 0.53% at 12,961.14, CAC 40 futures down 0.19% at 6210.23 and the UK 100 futures contract in the U.K. down 0.88% at 7,361.64.
In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 0.96% at 31790.88. The S&P 500 down 1.10% at 3986.15 and the Nasdaq 100 down 1.13% at 12342.70, NYSE closes down 1.24% at 14931.42.
Top Market News Today:
In the Forex market, GBPUSD up 0.29% at 1.1688. The USDJPY down 0.26% at 138.425. The USDCHF down 0.09% at 0.9727. EURUSD up 0.29% at 1.0041, EUR/GBP up 0.04% at 0.8591. The USD/CNY down 0.24% at 6.8914 at the time of writing.
In the Commodity market U.S. Gold futures up 0.13% at $1,725.36. Elsewhere, Silver futures up 0.65% at $18.522 per ounce, Platinum up 0.79% at $857.55 per ounce, and Palladium up 1.82% at $2127.12.
Crude Oil up on Wednesday; Brent Crude Oil up 0.60% at $100.41 per barrel while U.S. West Texas Intermediate (CLc1) up 0.49% at $92.33.
In the Cryptocurrency Markets, Bitcoin at 20375.92 up 2.84%, Ethereum up 5.75% at 1610.90, Litecoin at 54.85 up 3.67%, at the time of writing.
Top Market Segment to Watch Out Today:
Hewlett Packard Enterprise: Hewlett Packard Enterprise (NYSE:HPE) reported its Q3 results, with EPS of $0.48 coming in better than the consensus estimate of $0.47. Revenue was up 1% year-over-year (up 4% adjusted for currency) to $7 billion, beating the consensus estimate of $6.93 billion.
US: U.S. job openings increased in July and data for the prior month was revised sharply higher, pointing to persistently strong demand for labor that is giving the Federal Reserve cover to maintain its aggressive interest rate increases.
The Labor Department’s Job Openings and Labor Turnover Survey, or JOLTS report, on Tuesday, showed there were two jobs for every unemployed person last month, pointing to extremely tight labor market conditions. It suggested that fears the economy was in recession after two straight quarterly declines in gross domestic product were greatly exaggerated.
Job openings, a measure of labor demand, increased 199,000 to 11.239 million on the last day of July. Data for June was revised higher to show 11.040 million job openings instead of the previously reported 10.698 million. Economists polled by Reuters had forecast 10.450 million vacancies.
There were an additional 81,000 job openings in the transportation, warehousing and utilities industries last month. Job openings increased by 53,000 in the arts, entertainment and recreation sector, while the federal government had 47,000 more openings and state and local government education had an additional 42,000 unfilled jobs, ahead of the new school year.
Eurozone: Shops and supermarkets in Britain increased prices by 5.1% in the 12 months to August, the largest rise in records dating back to 2005, reflecting a jump in food costs caused by the war in Ukraine, the British Retail Consortium said on Wednesday.
Food prices leapt by 9.3% after a 7.0% increase in July, driven by increases in products such as milk, margarine and crisps as the war pushed up the costs of animal feed, fertiliser, wheat and vegetable oils, the BRC said.
The Bank of England, which has raised interest rates six times since December, is watching how persistent the surge in inflation is likely to be.
Britain’s consumer price index, which measures a broader range of prices than the BRC’s data, hit a 40-year high of 10.1% in July.
Top Economic Releases Today:
- U.S. ADP Nonfarm Employment Change (Jun) today at 8:15 this time estimated 288K, previously which was 128K.
- CANADA GDP (MoM) (Jun) today at 8:30 this time estimated 0.1%, previously which was 0.0%.
- RUSSIA Unemployment Rate (Jul) today at 12:00 this time estimated 4.1%, previously which was 3.9%.
- JAPAN Capital Spending (YoY) (Q2) today at 19:50 this time estimated 3.0%, previously which was 3.0%.
- AUSTRALIA Home Loans (MoM) today at 21:30 previously which was -3.3%.
Forex Technical Analysis
TRADE SUGGESTION- SELL AT 1.1688, TAKE PROFIT AT 1.1653 AND STOP LOSS AT 1.1730
TRADE SUGGESTION- SELL AT 1.0033, TAKE PROFIT AT 0.9997 AND STOP LOSS AT 1.0077
TRADE SUGGESTION- BUY AT 0.8588, TAKE PROFIT AT 0.8608 AND STOP LOSS AT 0.8532
TRADE SUGGESTION- BUY AT 138.857, TAKE PROFIT AT 139.348 AND STOP LOSS AT 138.393
TRADE SUGGESTION- SELL AT 6889.00 TAKE PROFIT AT 6846.00 AND STOP LOSS AT 6917.00
WTI CRUDE OIL Technical Analysis
TRADE SUGGESTION- SELL AT 91.52 TAKE PROFIT AT 90.39 AND STOP LOSS AT 92.29
GOLD Technical Analysis
TRADE SUGGESTION- SELL AT 1721.26, TAKE PROFIT AT 1712.61 AND STOP AT 1732.10
BITCOIN Technical Analysis
TRADE SUGGESTION- SELL AT 20252.00 TAKE PROFIT AT 19696.24 AND STOP AT 20724.89