Market Brief
The Usd was weaker in the Asian session.The EurUsd traded between 1.4060 and 1.4125, while the UsdJpy traded between 97.45 and 97..98. Asian regional indexes are trading higher, as risk appetite is slow returning to the market. Currently, crude is at $72.40bll and gold at $953.68oz.. The last auction of the week passed without incident, as the 30y auction recorded a bid-to-cover ratio of 2.68 and 49% was awarded to indirect bidders. Overall yields dropped as investors worries lessened after the auction as they found levels attractive. In China, May's data released today continued to outpace market expectations, suggesting the economy is on a recovery path. Industrial production growth jumped sharply to 8.9% y/y in May, from 7.3% prior. In the FX world, G10 currencies will continue to monitor China’s economic data. With Chinese growth supporting global growth and the demand for commodities, this will be positive for cyclical currencies and negative for the USD. This weekend's G8 meeting pre reports indicate that FX will not be on the official agenda since central bank officials will not be present. However, a French official has already stated concerns regarding volatility in FX, while Paul Volcker stated that it is important to maintain the USD's purchasing power at home and abroad. We expect officials to sound optimistic regarding the global recovery, which should be Usd negative.
| Global Indexes | Current Level | % Change |
| Nikkei 225 Index | 10,135.82 | + 1.55 |
| Hang Seng Index | 18,928.02 | + 0.73 |
| Shanghai Index | 2,906.29 | - 1.87 |
| FTSE 100 Index | 4,467.12 | + 0.12 |
| DAX Index | 5,100.22 | - 0.14 |
| SMI Index | 5,507.16 | + 0.43 |
| DJIA futures | 8,705.00 | + 0.20 |
| World Markets | Current Level | % Change |
| Gold | 952.40 | - 1.00 |
| Silver | 15.28 | - 1.34 |
| Crude wti | 72.15 | - 0.87 |
| Todays Calender | Estimates | Previous | Country / GMT |
| Industrial Production | -0.4 | -2 | EUR / 11.00 |
| Michgan Consumer Confidence | 70.0 | 65.7 | USD / 15.55 |
Currency Tech
AUDUSD
R 3: 0.8519
R 2: 0.8378
R 1: 0.8263
CURRENT: 0.8141
S 1: 0.7968
S 2: 0.7828
S 3: 0.7745
EURJPY
R 3: 144.61
R 2: 141.75
R 1: 139.22
CURRENT: 137.66
S 1: 135.30
S 2: 133.89
S 3: 131.49
USDSGD
R 3: 1.4803
R 2: 1.4748
R 1: 1.4666
CURRENT: 1.4500
S 1: 1.4425
S 2: 1.4386
S 3: 1.4336
- S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot
