The Chinese trade balance numbers of August released earlier of 58.93 billion came in better than expected of 59.50B. However, lower than the prior month of 62.33B.
The released data did not have any noticeable effect on the Chinese Yuan against the US Dollar price.
Equities
Global stocks steadied on Monday after Friday’s price drop in the US indices market. Last week, the Dow Jones rallied to an over six-month high at 29177 while the S&P500 printed an all-time high at 3586.6. However, both markets closed the weekly session in the red due to profit-taking operations.
Stock Market | Change % |
-0.8% | |
-0.5% | |
-1.2% | |
-0.3% | |
-1.6% | |
-0.8% | |
-0.8% |
Currencies
The US Dollar index rebounded last week from 28 months low at 91,72 then closed in the green. That said, the technical outlook of this market remains negative while below 93.50. A close above this level changes the outlook to neutral.
On the other hand, EUR/USD rallied on September 1st above the 1.2000 handle for the first time in over two years then retreated after due to profit-taking operations. The technical outlook for the pair remains positive while above 1.1750.
Similarly, GBP/USD rallied to a near nine-month high at 1.3479 then closed in the red, while AUD/USD climbed to an over two-year high at 0.7412 then slipped after. The technical outlook remains positive while above 0.7150.
Commodities
The crude oil price opened with a downside gap at $41.72 while US oil opened at $38.74 due to lower expectations of a strong demand recovery caused by the Coronavirus pandemic. However, the price rallied today as Saudi Arabia made the deepest monthly price cuts for supply to Asia in five months.
Gold has steadied on Monday around 1,930 after failing twice last week break below $1,921. Therefore, the price may rally towards $2,015 contingent on clearing the September 1st resistance level at $1,992 o/z.
Looking Ahead
Not much today on the Economic calendar due to the labor day holiday in the US. Markets' eyes will be tomorrow on the final read of the Eurozone’s GDP Q2.
