As we head into Tuesday, September 24, 2024, global forex markets are bracing for heightened volatility, driven by a series of significant economic releases and central bank discussions. The US dollar remains in sharp focus as traders anticipate the release of US PMI data, which is expected to provide insights into the health of the US manufacturing and services sectors. USD Strength Ahead of RBA Rate Decision.
In Europe, attention will turn to PMI data from the Eurozone. The latest readings on manufacturing and services activity will provide key clues about the region’s economic performance and the European Central Bank’s (ECB) policy stance. The euro has been under pressure recently as slower economic growth and inflation concerns continue to weigh on sentiment. Today’s data will help traders gauge whether the ECB is likely to adjust its current monetary policy stance.
Meanwhile, the British pound is also in focus as UK PMI data for September is set to be released. These numbers are crucial for understanding the UK’s economic outlook, especially as the Bank of England (BoE) faces challenges related to inflation and economic growth. The pound has been volatile, with traders eagerly awaiting data that could impact the BoE’s next policy decision.
Commodity-driven currencies like the Australian and Canadian dollars are similarly under scrutiny. The Australian dollar has shown signs of pressure ahead of the Reserve Bank of Australia’s (RBA) interest rate decision tomorrow, while traders expect the Canadian dollar to react to housing data and fluctuations in oil prices. Canadian GDP figures from July are also expected today, which could influence the loonie’s direction.
Overall, the forex market is set for increased volatility as traders navigate key economic releases and central bank commentary. Market participants are preparing for potentially swift price movements as uncertainty looms over monetary policy trajectories in the US, Eurozone, and the UK.
EUR/USD
Technicals in Focus
The EUR/USD pair has experienced sharp movements recently, testing the 1.1150 support level and rebounding back toward 1.1165. The euro remains under pressure as Eurozone PMI data and US dollar strength continue to dictate market sentiment. As the US PMI data looms, traders will keep an eye on how the Eurozone economy reacts to these key figures.
Technically, the pair is approaching resistance near the 1.1170 level. The MACD is signaling weakening bullish momentum, while the RSI remains in neutral territory, indicating a possible consolidation or further downside if the data disappoints.
Trading Strategy: Neutral to Sell
Sell below 1.1150 with targets at 1.1120 and 1.1090, with a stop loss above 1.1180. Alternatively, consider buying above 1.1180 with targets at 1.1210 and 1.1240, with stops below 1.1150.
USD/JPY
Technicals in Focus
The USD/JPY pair has been fluctuating around the 143.50 level as market participants await key US economic data. The pair remains sensitive to US PMI data and Federal Reserve comments, which could provide clarity on the future direction of interest rates.
On the technical front, the pair has been hovering near its resistance zone around 143.80, with the MACD showing signs of potential bullish continuation. However, the RSI is edging toward overbought levels, suggesting the possibility of a pullback.
Trading Strategy: Neutral to Buy
Buy above 143.80 with targets at 144.20 and 144.50, with a stop loss below 143.50. Alternatively, consider selling below 143.30 with targets at 143.00 and 142.70, with stops above 143.80.
AUD/USD
Technicals in Focus
The AUD/USD pair has seen swings between 0.6800 and 0.6830 as traders anticipate tomorrow’s RBA interest rate decision. The Australian dollar remains under pressure due to global economic uncertainty and RBA rate hike expectations.
Technically, the pair is nearing support at 0.6800, with the MACD signaling bearish momentum. The RSI leans toward oversold territory, suggesting potential downside risk, though a rebound could occur if the RBA surprises with its rate stance.
Trading Strategy: Neutral to Sell
Sell below 0.6800 with targets at 0.6770 and 0.6750, with a stop loss above 0.6830. Alternatively, consider buying above 0.6830 with targets at 0.6860 and 0.6880, with stops below 0.6800.
USD Strength Ahead of RBA Rate Decision
Looking ahead, today’s key events include US PMI data, Eurozone PMI releases, and Canadian GDP figures, all of which are expected to have significant impacts on their respective currencies. Volatility is expected to remain elevated as market participants digest economic data and central bank updates, particularly ahead of tomorrow’s RBA interest rate decision. Traders should prepare for potentially sharp price movements in response to these events.