Today’s Key Market Drivers – 9th August 2017

The safe haven currencies such as the Yen and Swiss Franc gained and stock indexes snapped multiple day gains on Tuesday after President Trump said North Korea would be met with “fire and fury” if it threatened the United States. Earlier in the day, North Korea was boasting that it now had a nuclear weapon capable of hitting the US and that it was ready to give it a “severe lesson”. Financial markets have mostly ignored North Korea’s recent rants and radical threats as they test fired missiles into the Sea of Japan in a direct threat to the Japanese. It appears that the United States and its allies have decided enough is enough and is pushing back against the rogue state recently ratcheting up sanctions that threaten to limit North Korea’s exports by as much as 1/3. Let’s keep our fingers crossed the geopolitical tensions don’t spill over into military action. Would North Korea really be that dumb?

The Aussie and Kiwi Dollars were sold off against the greenback on Tuesday as more positive signs from the US Labor Department supported the US Dollar. A report showed job openings increased 461,000 seasonally adjusted which according to CNBC is the best result since records on job opening numbers began back in the year 2000. This comes on the back of last Friday’s better than expected July jobs figures. The NZD v USD is now below the 200 EMA on the 4-hour chart breaking the stair stepping formation that has been in play since July 11th . The next key area of support for the AUD v USD is 0.7875.

Looking ahead to the economic calendar Australian Consumer Confidence data is due at 10.30am. Yesterday’s Business Confidence data beat the market’s estimates and helped support the Aussie Dollar so I will be keen to see if consumers are also optimistic about their personal fortunes. CPI data out of China will be important for the Asian trading session to digest and is due out at 11.30am AEST. The European and US trading sessions could be a yawn when it comes to economic data moving markets and the next piece of Central Bank news is the RBNZ’s monthly report tomorrow morning at 7.00am AEST.

About the Author: Andrew Barnett

Andrew is a professional trader and successful investor who has a strong focus on education. He is a regular Sky News Money Channel Guest and one of Australia’s most awarded and respected financial experts, and is regularly contacted by the Australian Media for the latest on what is happening with the Australian Dollar. Director at LTG GoldRock, Andrew Barnett, guides thousands of traders around the world in the live market on a daily basis, advising them on buy and sell directions, as well as trading his own personal account. Andrew, a regular key-note speaker at trading and wealth-creation events throughout the Asia Pacific region, is an authorized representative registered with the Australian Securities and Investment Commission (ASIC).

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