Bitcoin –

Bitcoin managed to regain $50,000 in August from the July intra monthly low of $29,337 on 20th July, representing a substantial 70% move.

DAILY TREND: UP

Source: ICE Connect

Bitcoin reached $50,000 in August and managed to hold under that key level at the close of the month.

UPCOMING HIGH IMPACT EVENTS


US Dollar –

The U.S. Dollar Index (USDX) closed +0.5% in August at 92.64, holding above Julys close after reaching a four-month high of 93.75 earlier on 20th August when it met with a resistance area set during October 2020. This initiated a fall to the downside setting a bearish tone for the remainder of the month only to be exacerbated by negative news with July’s poor Retail Sales figures and a significant unexpected drop in Consumer Sentiment.

DAILY TREND: RANGE

Source: ICE Connect

DXY extended the upward move during the first 3 weeks of August helped by positive Jobs data rallying to make a new four-month high at 93.75. The DXY found a pocket of resistance shown on a monthly chart between 93.75 – 94.80 combined with the RSI showing the market was Overbought and the bears took over and prices fell. Subsequently we have seen a break of the short-term uptrend based on May and Julys pivot lows and a drop below the 23.6% Fib Retracement. A short-term downtrend potentially forming as the bearish outlook continued and support a distance away.

The DXY closed at 92.64 with a +0.5% change.

UPCOMING HIGH IMPACT EVENTS


Singapore Dollar –

The Singapore Dollar closed the month at $1.3442 against the U.S. Dollar after taking advantage of the weakness of the U.S. Dollar declining from the highs against major currencies on 20th August 2021. The biggest movements throughout the month on the USDSGD seem to be led to the changes in the U.S. Dollar.

DAILY TREND: DOWN

Source: ICE Connect

USDSGD during August was in sync with the movements observed in the DXY as the USD is the base in this pairing. From this we can see the Singapore Dollar had benefited from the weakness in the DXY (Dollar against a basket of currencies) after it began to fall from the 20th August highs. The USDSGD reached a resistance area on a daily chart at 1.3693 – 1.3633 on 19th August where we saw a significant drop the following day representing U.S. Dollar weakness and Singapore Dollar strength. The short-term trend is confirmed down on the USDSGD.

The USDSGD closed at 1.3442 with a -0.7% change.

UPCOMING HIGH IMPACT EVENTS


Chinese Yuan –

The Chinese Yuan Renminbi closed at $6.4532 against the U.S. Dollar after multiple retests of the lower boundaries of the range (6.4500 – 6.5100) the USDCNH had been trading in for the past 10 weeks (with the exception of 2 trading days).

DAILY TREND: DOWN – NEUTRAL

Source: ICE Connect

USDCNH spent the majority of August trading in the range it had been in for the past 10 weeks. There was a little movement on the data issued for CPI and Retail Sales for short term traders but nothing significant until 20th August. PBOC announced the interest rate decision on this day (unchanged 3.85%) this coincided with the DXY reacting from a resistance area on 20th August. The weakness in the U.S. Dollar likely led to the appreciation of CNH which as the pair has the USD as the base to challenge the support area of 6.4500. This support area had previously been tested several times and was seeing less upward movement recently and likely to break.

The USDCNH closed at 6.4532 down by -0.1%.

UPCOMING HIGH IMPACT EVENTS


Asia Tech –

Technology stocks in Asia continued lower in August despite the corresponding industry in the United States setting new highs and indicated the market’s concern over the Chinese government’s future actions to reign in this sector.

DAILY TREND: DOWN

Source: ICE Connect

Price fell for most of August on continued concerns surrounding the impact of China’s regulators draft rules focused on unfair competition on the internet and regained some ground in the closing days of the month.

UPCOMING HIGH IMPACT EVENTS


Oil –

Brent crude oil traded lower for the first three weeks of August following July’s price action and recovered from the new low set at $64.20 to end the month 4.0% lower versus July at $71.63.

DAILY TREND: DOWN

Source: ICE Connect

Brent price reached a new low of $64.20 on 23rd August and recovered to close at $71.63. Brent remained inversely correlated to the U.S. Dollar.

UPCOMING HIGH IMPACT EVENTS


Key Figures –

Source: ICE Connect, ~30 Days


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TRADDICTIV · Research Team

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