Market Brief
The Usd was stronger in the Asian session, as the positive sentiment from China $570 stimulus package quickly wore off. The key driver was negative news from US financial and corporate equities, which pushed down equity markets. Risk aversion increased on reports that the government had altered the AIG bailout plan from the original $123bn deal, with a $150bn bailout package and Circuit City, a major US retailer, filed for bankruptcy. The EurUsd continued to trend lower from 1.2797 to 1.2675, while the UsdJpy was range bound from 97.60 to 98.30. Commodity markets were surprisingly unaffected by China's action and failed to insight a spark in the commodity currencies. The AudUsd was range bound from 0.6760 to 0.6650 and the UsdNok, in spiky trading, jumped to 6.8649 down to 6.7854. As a clear signal to the bearish sentiment surrounds global growth, crude prices are now hovering around the $60.00bll handle, down -2.74%. Yesterday's Wall Street session lacked buyers, as bad news scared bulls away. The negative sentiment carried over into Asian regional index, which are all currently trading lower. European stocks are pointing to a mixed open.
In Japan, Economy Watchers Survey household DI, which shows consumer sentiment from the corporate point of view, fell more than expected. There were steep declines for retail and housing, due to the financial market 's turbulence. Sentiment appears to have not find a bottom, as worsening economic conditions take their toll. Respondents indicated changes in purchasing behavior, as they brace for the worst.
With a light calendar today (with German ZEW being the highlight), we will have traders watching the news tickers and equity market prices. Currency price action will be complete under the influence of risk sentiment, with the Usd & Jpy the biggest gainers would concerns arise.
| Global Indexes | Current Level | % Change |
| Nikkei 225 Index | 8,809.30 | -2.99 |
| Hang Seng Index | 14,029.02 | -4.85 |
| Shanghai Index | 1,843.61 | -1.66 |
| FTSE 100 Index | 4,336.59 | -1.52 |
| DAX Index | 4,910.75 | -2.28 |
| SMI Index | 5,973.75 | -2.28 |
| DJIA futures | 8,857.00 | -0.33 |
| World Markets | Current Level | % Change |
| Gold | 745.73 | -0.06 |
| Silver | 10.21 | 0.24 |
| VIX | 59.98 | 6.91 |
| Crude wti | 60.76 | -2.66 |
| USD Index | 85.87 | 0.06 |
| Todays Calender | Estimates | Previous | Country / GMT |
| Trade in Goods & Services Balance (Sep) | -£4.7bn | -£4.8bn | UK / 8.30 |
| Trade in Goods Balance (Sep) | -£8.0bn | -£8.2bn | UK / 8.30 |
| CLG House Prices (Sep) | -5.40% | -3.40% | UK / 8.30 |
| ZEW Survey (Nov) | -63 | -63 | GE / 9.00 |
Currency Tech
AUDUSD
R 3: 0.7239
R 2: 0.7065
R 1: 0.7015
CURRENT: 0.6690
S 1: 0.6652
S 2: 0.6546
S 3: 0.6339
EURJPY
R 3: 132.24
R 2: 131.06
R 1: 128.44
CURRENT: 124.73
S 1: 123.81
S 2: 124.23
S 3: 122.25
USDSGD
R 3: 1.5147
R 2: 1.5078
R 1: 1.4988
CURRENT: 1.5011
S 1: 1.4772
S 2: 1.4647
S 3: 1.4585
- S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot
