FOREX SIGNALS SUMMARY FOR SEPTEMBER 6: TODAY'S AGENDA INCLUDES A BOC MEETING AND ISM SERVICES

MARKET WRAP FROM THE DAY BEFORE

Due to the Labor Day holiday in the US, most markets were quiet on Monday. The Chinese Caixing services report was released in the morning, a flurry of economic news that led to a rise in trading activity yesterday. The improved ISM manufacturing number from last week, the service sector is still contracting. This caused risk currencies to decline during the Asian session, but it wasn't domestic demand rose.

After then, the Reserve Bank of Australia convened its meeting, which ultimately caused the Aussie to fall by about 100 pip. There were no surprises from the maintained 4.10% for a third consecutive meeting, defying expectations in the markets that they would increase rates further.

However, the production drop output by significant OPEC+ players was the day's. According to Saudi Arabia, production will be 9 million barrels per day in October, November, and December. Russian official Novak then made that through the end of 2023, oil exports would be reduced by 300,000 barrels per day. That caused Oil to rise by about $2, and be going back toward $90.

MARKET EXPECTATIONS TODAY

Australia's GDP report comes out today. The Australian economy grow by 0.3% in Q2 following yesterday's RBA meeting, albeit there are negative risks. Similar to yesterday's move after the RBA, a miss would send the AUD on another negative run lower for at least 100 pips.

The Euro is expected to suffer further from predicted declines in German factory orders and retail sales from the Eurozone. Later, the Canadian trade balance will be released ahead of the Bank of Canada meeting. As Canadian inflation slows, the BOC maintain rates at 5.0% while maintaining a slightly dovish stance, which would be bullish for the USD/CAD.

The day will end with the US ISM Services PMI. In August, they are predicted to slow down even further, from 52.7 points to 52.5 points, the markets are worried about a worse miss. That would put an end to the last vestige of the FED raising rates, which would be negative for the USD.

UPDATE ON FOREX SIGNALS

As US traders returned from the bank holiday weekend and more trades were opened, the volatility increased yesterday. Since there were a few reversals occurring, there were a total of six trading signals that closed; four of them hit the take and two of them hit the stop loss target.

GOLD BREAKS LESS THAN THE 200 SMA

Gold changed over the past two weeks after being optimistic for August but then turning pessimistic. In the beginning, the cost momentarily fell below $1,900. However, as buyers returned to the market, this negative attitude resulted in a more upbeat forecast for Gold, reaching $1,953 by Friday afternoon. After running, the price has been falling ever since.

On the H4 chart, Gold appears to be moving lower right now after becoming overbought earlier. The 200 SMA (purple), which was breached yesterday by sellers, hence the outlook for Gold bearish.

WTI OIL BOOKING PROFITABLE

A reduction in oil production that will last through the end of the year has been announced by Saudi Arabia. For the months of October, November, and December, lower their daily production to 9 million barrels. Russia to reduce its production too.

Alexander Novak, the deputy prime minister of Russia, stated last week that his country intended to cut its oil production by 300,000 barrels per day. These news have caused the price of crude oil to increase by about $2, reaching a price above $87.50 per barrel, which met the take profit target for our buy Oil signal.