Market Brief
USD has stablized after yesterday broad based collapse. The USD was the weakest of the major currencies as it fell to its lowest level against the Euro moving to 1.4530 while the Gold moved to a high of $1008/oz continuing from Friday’s rally. The surge in Gold prices led to rise in equity markets across the globe with the US equity markets rallying for the third day. Factors contributing to the Dollar decline were comments from Trichet who said that the economies are recovering from the recession and steps are going to be taken on withdrawal from the stimulus measures. Also released was the World Economic Forum which stated that the US was the world’s most competitive economy along with Switzerland.
The EUR gained to its highest levels for the year at 1.4530 as Factory orders from Germany unexpectedly contracted 0.9% for the month of July while the trade balance showed a surplus of 13.9 Billion Euros boosting the Euro against the USD.
The AUD continued its rise against the USD crossing 0.8600 boosted by rising Gold on US Dollar weakness as well as on inflation outlook. The GBP/USD moved up to a high of 1.6580 on industrial production data from the UK which showed a rise of 0.5% for the month of July as against expectation of 0.2%. Also helping the Pound was the GDP estimate showing a reading of 0.2% for August.
Consumer Credit in the US fell $21.6 Billion plunging five times more than estimated as banks tightened credit and job loss fears were prominent among consumers against expectation of a drop of $4 Billion bringing the total to $2.5 Trillion. Crude Oil moved to a high of $71.80 as equity market rally brought back strength in the crude as signs of recovery were prominent along with Dollar weakness ahead of the OPEC meet. In Australia, seasonally adjusted terms, retail sales fell 1.0% in July, disappointing market expectations for a rise of 0.5% .
Important news released today would be the CPI data from Germany which is expected to remain same as expected while Canada releases its Housing Starts at 1215 GMT. In the US last Beige Book is expected to report that "pace of decline has moderated or that activity has begun to stabilize". And tonight Reserve Bank of New Zealand (RBNZ) would be releasing their rate decision which is expected to remain unchanged at 2.5% although there could be comments from the governor regarding policy shifts and growth forecasts.
| Global Indexes | Current Level | % Change |
| Nikkei 225 Index | 10,312.14 | -0.78 |
| Hang Seng Index | 20,870.34 | -0.94 |
| Shanghai Index | 2,934.94 | 0.15 |
| FTSE 100 Index | 4,497.34 | 0.28 |
| DAX Index | 5,481.73 | 0.33 |
| SMI Index | 6,194.72 | 0.2 |
| S&P future | 1,021.70 | -0.33 |
| World Markets | Current Level | % Change |
| Gold | 1,001.53 | 0.61 |
| Silver | 16.6 | 1 |
| VIX | 25.62 | 1.42 |
| Crude wti | 71.4 | 0.42 |
| USD Index | 77.2 | -0.17 |
| Todays Calender | Estimates | Previous | Country / GMT |
| BoE MPC starts (to 10/9) | -- | -- | GBP / -- |
| Industrial production, % m/m Jul | -- | -2.5 | SEK / 07.30 |
| Trade balance, £ bn Jul | -6.4 | -6.4 | GBP / 08.30 |
| FRB of Chicago President Evans speaks on "The Grea | -- | -- | USD / 12.00 |
| CPI, % m/m Aug | 0.27 | 0.27 | MXN / 14.00 |
| ECB Executive Board member González-Parámo at 30th | -- | -- | EUR / 14.15 |
| Fed's Beige Book published | -- | -- | USD / 18.00 |
| RBNZ Rate Announcement | 2.50% | 2.50% | NZD / 21.00 |
Currency Tech
AUDUSD
R 2: 0.8815
R 1: 0.8695
CURRENT: 0.8609
S 1: 0.8380
S 2: 0.8240
USDCAD
R 2: 1.1100
R 1: 1.0950
CURRENT: 1.0773
S 1: 1.0630
S 2: 1.0545
EURJPY
R 2: 136.10
R 1: 135.00
CURRENT: 134.03
S 1: 132.77
S 2: 131.75
USDMXN
R 2: 13.570
R 1: 13.410
CURRENT: 13.3500
S 1: 13.245
S 2: 13.130
- S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot
