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Asia opens higher on momentum from Wallstreet's 11% bounce back in final moments of trading yesterday

Fri, Nov 14 2008, 09:23 GMT
by Peter Rosentreich

ACM - Advanced Currency Markets


Market Brief

The Nikkei 225 is up 2.7% this morning, the Hang Seng is up 3% and the same is for the other Asian indices this morning. Wall street’s epic and historic 11% bounce back to end the day over 6.5% higher. Currencies reacted strongly on the back of this news, the dollar Losing substantial ground to other majors as a result – except for the Japanese yen which lost almost 2% on the move.

Sterling was exceptionally volatile in the Asian session, strong and broad moves bringing the cable pair down from 1.4905 to 1.4790 before retracing to 1.4870 then down again. These moves take root and suffer in the wake of this week’s BoE inflation report – however some say that the BoE is the only central bank that’s divulging just how serious the situation is. Traders will have to take heed of this and the fact that it’s technically oversold.

The Dollar’s weakness last night was mainly down to risk aversion and a renewal of carry trades, however the current levels for the Yen seem unsustainable – 108 and 90 are a short term target for the EURJPY and USDJPY respectively.

Commodities and energy stocks are higher today, a vast contrast to what we were privy to yesterday. This was mainly brought on by the vast rally in crude price, jumping near $4/bbl from $54.60 to $59.80 and is now trading at $57.66.

Snap Shot

Global Indexes Current Level % Change
Nikkei 225 Index8462.42.71
Hang Seng Index13620.253.02
Shanghai Index1961.41.75
FTSE futures4166.5-0.04
DAX futures4661.5-0.04
DJIA futures8757-0.83
Nasdaq futures1228.5-0.49

World Markets Current Level % Change
Gold728.33-1.11
Silver9.245-2.07
VIX59.83-9.98
Crude wti58.03-0.36
USD Index86.79-0.17

Todays Calender Estimates Previous Country / GMT
Euro Zone GDP-0.10%-0.20%EUR / 10:00
Euro Zone CPI0.10%0.20%EUR / 10:00
US Advance Retail Sales-1.40%-1.20%US / 13:30
US Retail Sales Less Autos-1.00%-0.60%US / 13:30
US U. of Michigan Confidence5657.6US / 15:00


Currency Tech

AUDUSD
R 3: 0.7065 R 2: 0.7015
R 1: 0.6758
CURRENT: 0.6524
S 1: 0.6390
S 2: 0.6339
S 3: 0.6009

EURJPY
R 3: 128.44
R 2: 125.48
R 1:; 123.20
CURRENT: 123.15
S 1: 119.10
S 2: 120.00
S 3: 115.00

USDSGD
R 3: 1.5304
R 2: 1.5161
R 1: 1.5150
CURRENT: 1.5143
S 1: 1.4875
S 2: 1.4772
S 3: 1.4647

  • S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot

Published on  Fri, Nov 14 2008, 10:26 GMT


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Advanced Currency Markets, S.A.  | 50 Rue du Rhone CH-1204 Geneva
http://www.ac-markets.com | support@ac-markets.com

Legal disclaimer and risk disclosure

This report has been prepared by AC Markets and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by AC Markets personnel at any given time. ACM is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.

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