A Quiet Session, Get Ready For the Open

It was a light trading day yesterday with numerous markets closed for Labor Day. Even though most of the currency pairs continued to linger around their recent levels, commodity currencies increased in value, backed by recent momentum and the outcome of the G20 meeting.

After a long weekend the outcome of the G20 meeting was that economic stimulus would continue to remain helping the global economy, until countries are showing more signs of recovery. G20 leaders agreed that in due time they will engage in monetary tightening, using various exit strategies to rid the markets from excess cash.

From a technical point of view the lackluster session, sent the various currency pairs into consolidation mode. The Dollar index failed to present any major movements drifting around recent support levels of 78 points. On individual pairs the AUD/USD continued its recent breakout and presented a minor gain throughout the session.

Even though investors are still bullish on this pair, one must note that current price levels are pricing in a positive figure from the county’s retail sector and a better than expected employment report. Worse than expected results could cause a shift in investor’s sentiment, causing the chart to test its recent break out level.

AUD/USD - 1 Hour Chart
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