With Monday being Labor Day in the United States and Canada, we are going to have a very lopsided day. Quite frankly, by the time the Europeans are looking to come back from lunch, the markets will probably be very quiet. With this in mind though, there are going to be a few traders to be had early in the day. We are looking at the following three assets:
AUD/USD
The AUD/USD pair will more than likely take center stage early in the day as we get Chinese Service PMI numbers coming out. The Aussie dollar is quite often used as a proxy for China, and as a result a strong release could have the Aussie moving higher, just as a weak release could have it moving lower. However, we do have an interest rate statement coming out the next day, so trades will be short-term only.
Gold
Gold markets got a little bit of a boost during the session on Friday, and the $1300 level now looks very supportive. With this being the case, you have to believe that the call buyers are interested in returning in this market that has been strong longer-term although we have been consolidating for two months now. At this point, we are close to the bottom of the consolidation, so it appears the traders will look at it as potential value.
DAX
The German index initially fell during the day on Friday but then turn right back around to form a fairly supportive candle. It looks like we are trying to grind way higher so pullback should represent value the call buyers are willing to get involved with if history is any indication.
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