Market Brief
The Usd was range bound in the Asian Session. The EurUsd traded between1.3940-1.4060 and the USDJPY traded from a high of 98.30 to a low of 97.75. Asian regional indexes are flat following Wall Street's lower close. Crude prices continue to strengthen rising to a 7 month high of $72.16bll. Yesterday's US 10yr auction was not a smashing success but still managed bid-cover ratio and awards to indirect bidders to be respectable (although at 34.7% yesterday was higher than average). The media is still buzzing due to several major EM such as Russia, China and Brazil have expressed interest to diversify outside the the Usd. Hoever, currently we have seen no eveidence of this occuring or corresponding Usd selloff. The Fed's Beige Book failed to provide any real insight, mimicking the previous report, stating the US economy "remained weak or deteriorated" but showed signs of the slump "moderating.” In New Zealand, the RBNZ held rates at 2.50%. It seems that the market was pricing in a cut as the Nzd rapidly rose to 0.6380 against the Usd. The RBNZ stated that recent improvement in domestic activity has balanced downside risks to the economy and the need to monitor past rate cuts. Today US retail sales with be significant since it will be the first real test to the theory that FX markets are shifting their reaction to positive US data. Currently, the trend is counter intuitive but recent behaviors suggest this might be changing back to pro US equals positive USD and negative EM and commodities.
| Global Indexes | Current Level | % Change |
| Nikkei 225 Index | 9,981.33 | - 0.10 |
| Hang Seng Index | 18,737.77 | - 0.25 |
| Shanghai Index | 2,797.32 | - 0.67 |
| FTSE 100 Index | 4,419.55 | - 0.33 |
| DAX Index | 5,059.77 | + 0.17 |
| SMI Index | 5,461.44 | + 0.46 |
| DJIA futures | 8,759.00 | + 0.05 |
| World Markets | Current Level | % Change |
| Gold | 953.15 | - 0.14 |
| Silver | 15.15 | - 0.26 |
| VIX | 28.46 | + 0.67 |
| Crude wti | 71.41 | + 0.11 |
| USD Index | 80.14 | - 0.23 |
| Todays Calender | Estimates | Previous | Country / GMT |
| ECB monthly bulletin published | -- | -- | EUR / 08.00 |
| BoE Inflation Attitudes Survey, % 1yr ahead | -- | 2.1 | GBP / 08.30 |
| Retail sales, % m/m (y/y) | 0.3 (-9.9) | -0.4,-10.1 | USD / 12.30 |
| Initial jobless claims, ‘000 (4wk mvg avg) | -- | 621 (631) | USD / 12.30 |
| Retail sales ex autos, % m/m (y/y) | 0.2 (-7.9) | -0.5,-7.7 | USD / 12.30 |
| Business inventories, % m/m (y/y) | -1.0,-6.2 | -1.2,-4.9 | USD / 14.00 |
| FRB of Atlanta President Lockhart (FOMC voter) spe | -- | -- | USD / 17.05 |
| Retail sales % m/m | 0.2 | -0.4 | NZD / 21.45 |
| Retail sales ex autos % m/m | 0.4 | 0.5 | NZD / 21.45 |
Currency Tech
AUDUSD
R 3: 0.8520
R 2: 0.8378
R 1: 0.8263
CURRENT: 0.8095
S 1: 0.7828
S 2: 0.7745
S 3. 0.7700
EURJPY
R 3: 144.60
R 2: 141.75
R 1: 139.75
CURRENT: 136.75
S 1: 135.30
S 2: 133.89
S 3: 131.50
USDSGD
R 3: 1.4803
R 2: 1.4748
R 1: 1.4666
CURRENT: 1.4532
S 1: 1.4425
S 2: 1.4385
S 3: 1.4335
- S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot
