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Market Session Snap-Shot
Asian Session − RBA holds at 7.25%
Tue, May 6 2008, 08:39 GMT
by Peter Rosentreich
ACM - Advanced Currency Markets
Market Brief
Usd was range bound in Asia session as market lacked new information to stimulate it in any real direction. EurUsd trended upwards to the 1.5535 level in early trading after ECB President Trichet reiterated his warning of the high inflation risks that still exist in the Eurozone but reversed earlier gains as the session progressed. The Australian dollar's strength waned as the RBA unexpectedly maintained its neutral bias after holding rates steady. AudUsd fell sharply to 0.9423 and continued to come under selling pressure. Trading continued to be light as the holiday season was still in full swing with Tokyo closed. Last night's comments from the Fed Chairman Bernanke that rising mortgage foreclosures may push home prices down further hit the Dollar.
Sterling was very quiet following the U.K. markets being closed on Monday. The Pound was trading around 1.9735 region while against the Euro it slipped to .7870 from .7852 and significantly higher from the low of .7765 area seen last Friday. There is considerable pressure building on Prime Minister Brown to turn around his own personal reputation with the British public and revive the Labour party’s confidence after a the hammering it took in last weeks local elections.
Yesterday US market were quiet as it closed down slightly on the day. Only two of the ten sectors moved higher: materials (+1.5%) and energy (+1.0%) , and theese were the only 2 higher on the year. The main story on the day was Microsoft (-0.5%) dropping its proposed enhanced bid for Yahoo (-15.0%) at $33. Oil prices closed higher near the $120 mark on the back of production disruptions in Nigeria and amid dollar weakness. As a result energy companies rose after crude hit $120 a barrel. Mining stocks were also higher, as other commodity prices rose. Gold ended higher in a second straight session as the crude prices rallied; the most active Jun '08 contract was up $16.10 to $874.10. Asian stocks declined for the first time in three days, with the Hang Seng was flat and the MSCI A-P down a little. Financial companies were lower following the US trading along with the fact that investors fear more write-downs. Positive news regarding wheat finally emerged, as Australia seems like it will double its harvest this year amidst imprving conditions in the farming industry.
The RBA held rates at 7.25%. This was widely expected but the markets were nevertheless surprised by the neutral stance the Bank seems to have taken. Markets have been pricing in another rate hike near term but the probability shifted slightly after yesterd'ay's statement. The RBA noted increasing price pressures but pointed to slowing domestic demand as a constraint of inflation.
| Global Indexes | Current Level | % Change |
| Nikkei 225 Index | 14,049.26 | 2.05 |
| Hang Seng Index | 26,230.87 | 0.17 |
| Shanghai Index | 3,733.50 | -0.73 |
| FTSE futures | 6,212.50 | -0.1 |
| CAC futures | 5,020.00 | -0.18 |
| SMI Futures | 7,655.00 | -0.27 |
| DJIA futures | 12,993.00 | 0.2 |
| World Markets | Current Level | % Change |
| Gold | 874.68 | 0.05 |
| Silver | 16.77 | 0.32 |
| VIX | 18.9 | 3.96 |
| Crude wti | 119.72 | -0.2 |
| USD Index | 73.17 | -0.01 |
| Todays Calender | Estimates | Previous | Country / GMT |
| PMI Services (apr) | 51.8 | 51.8 | EZ / 9.00 |
| PMI Services (apr) | 54.6 | 54.6 | GE / 9.00 |
| PMI Composite (apr) | 51.9 | 51.9 | EZ / 9.00 |
| PPI (mar) m/m,y/y | 0.7%(5.6%) | 0.6%(5.3%) | EZ / 10.00 |
| Building Permits (mar) m/m | 1.20% | -1.00% | CA / 13.30 |
| Ivey Purchesing Managers Index (apr) | 54 | 59 | CA / 15.00 |
Currency Tech
AUDUSD
R 3: 0.9544
R 2: 0.9496
R 1: 0.9484
CURRENT: 0.9446
S 1: 0.9342
S 2: 0.9272
S 3: 0.9249
EURJPY
R 3: 164.98
R 2: 163.88
R 1: 163.25
CURRENT: 162.55
S 1: 161.44
S 2: 160.60
S 3: 159.83
USDSGD
R 3: 1.3887
R 2: 1.3746
R 1: 1.3661
CURRENT: 1.3585
S 1: 1.3554
S 2: 1.3470
S 3: 1.3318
- S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot
Published on Tue, May 6 2008, 08:44 GMT
Archive
- Asian Session- Dollar Stagnates Meanwhile Euro Awaits
Published On Fri, May 16 2008, 09:22 GMT - Asian Session- Dollar Continues to Hold as Asian Currencies Come Under Some Pressure
Published On Wed, May 14 2008, 09:10 GMT - Asian Session - Dollar Regains Some Confidence Amid Continued Morosity
Published On Tue, May 13 2008, 10:03 GMT - The Dollar is Holding Amid Reappraisals by Central Banks
Published On Fri, May 9 2008, 10:16 GMT - Asian Session - Usd Continues to Surge Higher
Published On Thu, May 8 2008, 07:51 GMT
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