Daily wrap up – 5 September

Financial markets are still cautiously following the North Korea's most powerful nuclear test at the end of last week amid news of its intention to launch another missile. US stock markets opened lower after closing yesterday to celebrate the Labor Day.
The start of the day was with the Reserve Bank of Australia, where it kept its monetary policy unchanged and its members voted to keep interest rates at 1.5% at historic lows, expressing concern over the impact of the appreciation of the Australian dollar on growth expectations, then the AUDUSD has risen to 0.7984 before easing slightly and then resuming rising sharply to reach 0.8027 the highest levels since July 23.
Gold prices fell slightly from their highest levels in nearly a year near to 1340$ per ounce, currently trading at 1336$ levels.
In the UK, sterling shrugged off the service sector's slowing to 11-month lows and rallied strongly against the US dollar, reaching its highest level in almost a month at 1.3032.
Also, one of the reasons for weighed on the US dollar was cautionary statements from Brainard, a member of the Federal Reserve Committee that sees caution when raising interest rates as inflation hovers from the Fed's target. Also, US factory data, which hit its lowest level in 3 years, after that it pushed the US dollar to its lowest level since last Friday, where the dollar index reached the level of 92.12.
With risk averse due to uncertainty, the Japanese Yen rose significantly today as the USDJPY is currently trading at 108.75, its lowest level since August 29, which is an important support level.
Oil prices rebounded today, reaching their highest level in nearly two weeks at 48.96$ a barrel following news that Saudi Arabia and Russia were discussing extending the production cut agreement.