EURUSD COOLS AHEAD OF JACKSON HOLE AND US GDP DATA

The EURUSD was little changed during the Asian session as traders waited for the upcoming statement from the European Central Bank (ECB) and economic data from the US. The ECB will publish the latest account of monetary policy, which will shed more light on the bank’s thinking. Later on, the US will deliver the second estimate of GDP data. Analysts expect a slight improvement of the GDP reading from 6.5% to 6.7%. At the same time, the statistics agency will publish the second quartet PCE number. Still, the main catalyst for the pair will be statements from central bankers at the virtual Jackson Hole summit.

US stocks did well in the overnight session as traders remained optimistic about corporate profit growth. The Dow Jones, S&P 500, and Nasdaq 100 indices rose by more than 0.10%. The latter two are comfortably at their all-time high. Their futures rose after strong earnings from Salesforce and Ulta Beauty. Salesforce made a profit of $1.48 per share, which was better than the median estimate of $0.92. Meanwhile, the wave of mergers and acquisitions continued. According to the Wall Street Journal, Western Digital was in talks to combine with Kioxia Holdings in a $20 billion deal.

The Australian dollar tilted lower today after the strong economic data from the country The statistics agency said that building capital expenditure rose by 4.6% in the second quarter. In the same month, the plant and machinery capital expenditure rose by 4.3% while private new capital expenditure rose by 4.4%. Capital expenditure plays a major role in the overall calculator of a country’s GDP. Elsewhere, Hong Kong will publish its trade numbers while Sweden will release the latest PPI data.

AUDUSD

The AUDUSD pair declined to 0.7258, which was slightly below this week’s high of 0.7280. On the hourly chart, the pair dropped to the 50% Fibonacci retracement level. It also declined slightly below the 25-day moving average while the MACD remains above the neutral level. The RSI has started forming a bearish divergence pattern. Therefore, the pair may keep falling as bears target the key 38.2% Fibonacci level at 0.7220.

EURUSD

The EURUSD was little changed and is trading at 1.1763, which is slightly below this week’s high of 1.1773. On the 30-minute  chart, this price is slightly below the 25-day moving average. It is also slightly above the 63.8% Fibonacci retracement level. The price is also below the upper side of the ascending channel. Therefore, the pair may keep falling as bears target the lower side of this channel at 1.1745.

NDX100

The Nasdaq 100 index is hovering at its highest level on record as interest in technology stocks remain. It is trading at $15,330, which was slightly below the all-time high of $5,400. On the four-hour chart, the pair has formed a bullish consolidation pattern while oscillators have formed a bearish divergence pattern. Therefore, the index will likely pull back to the support at $15,155 and then continue with the bullish trend.