Market Brief
Markets were calm in Asian session due to the US holiday. Asian equity markets are considerably lower and European indexes are currently pointing in the same direction. The Usd continued to gain, after a night of thin liquidity and stops being triggered, the greenback now looks to test 1.2550 dec08 lows.
Comments by the Russian Central Bank regarding its intent to increase its gold reserves should keep Gold prices supported.
The RBA released the February Board Meeting Minutes, when the Central Bank cut 100bp in the cash rate to 3.25%. Minutes noted further deterioration in global economic conditions, downgraded domestic growth and inflation outlook. However, the bank remains confident that Australia will remain stronger than in other countries. The Aud and Nzd both slid on the release.
US President Obama is expected to sign the fiscal stimulus package into law today.
In the European session, markets will be watching German ZEW investor sentiment. We expect the figure to be little changed from the already low level. However, given the latest industrial figures, which have painted a dismal picture, we wouldn’t be surprise to a move back to -30.
| Global Indexes | Current Level | % Change |
| Nikkei 225 Index | 7,645.51 | - 1.35 |
| Hang Seng Index | 12,945.40 | - 3.79 |
| Shanghai Index | 2,319.44 | - 2.97 |
| FTSE 100 Index | 4,095.89 | - 0.94 |
| DAX Index | 4,295.75 | - 1.62 |
| SMI Index | 5,005.61 | - 1.41 |
| DJIA futures | 7,656.00 | - 1.58 |
| World Markets | Current Level | % Change |
| Gold | 959.80 | + 1.91 |
| Silver | 13.86 | + 1.73 |
| VIX | 42.93 | + 4.07 |
| Crude wti | 36.67 | - 2.23 |
| USD Index | 87.50 | + 0.97 |
| Todays Calender | Estimates | Previous | Country / GMT |
| CPI, % m/m Jan | -1.1,2.7y | -0.4 ,3.1y | UK / 9.30 |
| CPI ex food, energy, alcohol & tobacco, % y/y Jan | 0.9 | 1.2 | UK / 9.30 |
| DCLG house prices, % y/y nsa | -- | -8.6 | UK / 9.30 |
| ZEW economic expectations index Feb | -28.0 | -31.0 | GE / 10.00 |
| Trade balance, €bn (sa) Dec | -7.0 | -4.9 | EZ / 10.00 |
| Empire manufacturing, index Feb | -23.00 | -22.20 | US / 13.30 |
| Net foreign security purchases (TICs), $bn Dec | -- | -21.7 | US / 14.00 |
| NAHB housing market index Feb | 8 | 9 | US / 18.00 |
| BoE MPC member Tim Besley speaks at the London Sch | -- | -- | UK / 18.00 |
Currency Tech
AUDUSD
R 3: 0.6798
R 2: 0.6643
R 1: 0.6567
CURRENT: 0.6399
S 1: 0.6403
S 2: 0.6354
S 3: 0.6249
EURJPY
R 3: 122.17
R 2: 120.01
R 1: 118.80
CURRENT: 116.44
S 1: 114.90
S 2: 114.22
S 3: 113.15
USDSGD
R 3: 1.5458
R 2: 1.5339
R 1: 1.5265
CURRENT: 1.5280
S 1: 1.5036
S 2: 1.4935
S 3: 1.4908
- S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot
