The US stock index tried to rally for the second straight day, building on Wednesday's rally, on the back of an upbeat session in Asia, where the volatile Chinese markets are closed for two days. Investors were also waiting for US nonfarm payrolls data, as well as the latest unemployment rate from the US.
The recent data from the US labour market showed that the weekly jobless claims rose by 282K in August, above market expectations for an increase of 275K. The number of people filing first-time claims for state unemployment insurance in July was 271K, whose figure was downwardly revised from a previously reported 270K.
Today on the economic data front, we will have the Nonfarm payrolls that are expected to rise from 215K to 220K and the unemployment rate should drop from 5.3% to 5.2%. Above expectations will provide further confidence in the US economy for an interest rate rise.
Since the start of September the UsaRus Index fell more than 0.4% and is in a bearish phase after the death cross that was generated when the 50-day moving average (green) crosses below the 200-day moving average (red). On yesterday session the UsaRus tried to rally but found enough resistance at 1,154 to turn south and close in the red near the open of the day, with a narrow range but still managed to close above the 10-day moving average. The stochastic is displaying bearish momentum and is crossing downward the 50 mid line.
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UsaRus is a CFD written over Russell 2000 futures.