Market Brief
The Usd strength was curtailed in the Asian session, as recovering credit markets and a rally in crude prices helped generate some positive sentiment. The EurUsd traded up from 1.3170 to 1.3314, while the UsdJpy rallied from 88.95 to 89.83. The NzdUsd, after being sold heavily on S&P rating comments, found some respite trading from.0.5520 to 0.5462 (on the back of higher commodity prices) and our current currency risk appetite gauge, AudJpy, firmed traded up from 59.00 to 61.15. At this point, the S&P sees a potential downgrade for Portugal, Greece, Spain, Ireland and New Zealand . Yesterday, Wall Street session closed flat, with VIX coming off slightly. Asian regional indexes are trading slightly higher and European stock futures are pointing to a higher opening. Yesterday, Fed Chairman Bernanke's speech held a few notable comments, such as that President-Elect Obama proposed stimulus package could provide the contracting US economy a significant boost and highlighted the differences between the BoJs quantitative easing and what he calls the Feds "credit easing". We see the recent correction in Usd strength as temporary and given the current macro environment, we expect the Usd continues to rally against the Euro.
In the European session, markets will be watching the Eurozone industrial production, which looks set to see another sharply decline for a third consecutive month German, French and Spanish production figures have already shown significant declines, so there is little reason for optimism.
| Global Indexes | Current Level | % Change |
| Nikkei 225 Index | 8,438.45 | 0.29 |
| Hang Seng Index | 13,704.61 | 0.26 |
| Shanghai Index | 1,928.87 | 3.5 |
| FTSE 100 Index | 4,354.66 | -1.01 |
| CAC 40 Index | 3,198.17 | 0.01 |
| DAX Index | 4,637.99 | 0.02 |
| DJIA futures | 8,400 | -0.09 |
| World Markets | Current Level | % Change |
| Gold | 826.7 | 0.57 |
| Silver | 10.81 | 0.46 |
| VIX | 43.27 | -5.6 |
| Crude wti | 39.06 | 3.38 |
| USD Index | 83.97 | -0.35 |
| Todays Calender | Estimates | Previous | Country / GMT |
| Industrial production, % m/m | -1.8,-6.0Y | -1.5,-5.7Y | EZ / 10.00 |
| Import prices, % m/m | -5.3,-9.3Y | -6.7,-4.4Y | US / 13.00 |
| Non-petroleum import prices, % m/m | -- | -1.8,2.4Y | US / 13.00 |
| Retail sales, % m/m | -1.2,-7.0Y | -1.8,-7.4Y | US / 13.00 |
| Retail sales ex autos, % m/m | -1.4,-3.0Y | -1.6,-2.9Y | US / 13.00 |
| FRB of Philadelphia President Plosser (FOMC non-vo | -- | -- | US / 13.30 |
| Business inventories, % m/m | -0.5,3.7Y | -0.6,4.6Y | US / 15.00 |
| Core machinery orders, % m/m | -8 | -4.4 | JP / 23.50 |
| Corporate goods price index, % y/y | 0.8 | 2.8 | JP / 23.50 |
| FRB of Minneapolis President Stern (FOMC non-voter | -- | -- | US / 18.00 |
Currency Tech
AUDUSD
R 3: 0.7142
R 2: 0.7042
R 1: 0.6820
CURRENT: 0.6751
S 1: 0.6576
S 2: 0.6490
S 3: 0.6294
EURJPY
R 3: 126.52
R 2: 125.28
R 1: 121.86
CURRENT: 118.65
S 1: 115.88
S 2: 114.41
S 3: 113.64
USDSGD
R 3: 1.5114
R 2: 1.5010
R 1: 1.4942
CURRENT: 1.4853
S 1: 1.4755
S 2: 1.4675
S 3: 1.4502
- S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot
