Market Analysis: The American Currency Resumes Growth


The beginning of October turned out to be favourable for continued growth in the US dollar. From the data published yesterday, it follows that in September, the US manufacturing business activity index (PMI) rose to 49.0 against the forecast of 47.7. The ISM manufacturing employment index for the same period also turned out to be positive: 51.2 versus 48.3. Add to this the hawkish statements of the FOMC members who have spoken in recent days, and we can observe another upward impulse on the greenback.


For commodity currencies, the current week is extremely rich in important fundamentals. This morning, the Reserve Bank of Australia met, tomorrow, the RBNZ will announce its verdict on the rate, and on Friday, the US employment report will be released.

According to analysts' forecasts, the New Zealand regulator will leave the rate unchanged, which may put additional pressure on the NZD/USD pair. On the weekly timeframe, we are seeing a rebound from the important level of 0.6000. If the current situation does not change, we can expect a renewal of the March low of this year at 0.5860. We can consider cancelling the downward scenario only after a confident consolidation above 0.6050.


Last week, buyers of the British currency failed to develop a full-fledged upward correction after the rebound from 1.2100. Yesterday morning, the initiative passed to the sellers of the pair, who managed to break the support at 1.2100. At the moment, we are seeing a continuation of the downward trend in the pair. If the price goes below 1.2000, we can expect a test of the March low at 1.0800.
Today's news on the number of open vacancies in the US labour market for August will be important for the pair's pricing.


Sellers of the single European currency yesterday managed to update the current year's minimum at 1.0500. The slowdown of the European economy and the retreat of investors to the dollar as a safe-haven currency may lead to a new downward impulse for the pair in the direction of 1.0400-1.0200.

Tomorrow at 11:00 GMT+3, ECB head Christine Lagarde is scheduled to speak.

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

USD/JPY, USD/CAD, and EUR/USD Analysis: The US Dollar Corrected in Anticipation of PMI Data Release EUR/USD, GBP/USD, USD/JPY Analysis: US Dollar Weakens after Fed Chairman's Comments EUR/USD, GBP/USD, and USD/JPY Analysis: US Dollar Growing Against Euro and Pound Market Analysis: The USD/CAD Rate Drops to Its Minimum of 2 Months Market Analysis: AUD/USD Trims Gains While NZD/USD Extends Increase

Latest articles

Forex Analysis

USD/JPY, USD/CAD, and EUR/USD Analysis: The US Dollar Corrected in Anticipation of PMI Data Release

In the first trading hours of the current five-day period, the American currency made a number of attempts to regain the positions lost last week and begin an upward correction. Thus, the USD/JPY pair found support just above 146.


S&P500: The end of a significant rally?

Opinions vary across the financial markets this morning as the S&P 500 index, a prestigious benchmark tracking the performance of 500 major US companies, takes centre stage in recent market discussions. Just days ago, on the first trading


Market Analysis: Gold Falls from Record High by $100 in 1 Day

The record high of about USD 2,130 an ounce was set just after the weekend in low-liquid Asian markets. By the nature of the movement, it looked more like a cascading triggering of sellers’ stop losses, rather than finding

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.