Market Brief

Asian currencies continue to trade in tandem with bias regarding a global economic recovery. The Asian Development Bank upgraded its forecasts for economic growth lifting emerging market currencies like the Thai Baht. Price action has been fairly volatile in both the majors and exotics due to increased volatility and sensitivity to event risk. A consistent theme embedded in the recovery story is a prolonged period of dollar weakness, which suggest that many currencies like UsdSgd and UsdKrw. UsdJpy managed to reach a one week high based on expectations that the yen will benefit from capital inflows through repatriation of funds.

In the near term, economic data out of Japan was slighlty better than expected overall. Both merchandise exports and imports declined less than projected, but were still negative at -36 and -41.3 respectively. Japanese Investors are back from holiday and the return in volume was helped stock markets rise in region. Most of the other Asian equity indexes suffered losses stemming from commodity stocks which are seeing deleveraging due to slumping commodity prices.

Snap Shot

Global Indexes Current Level % Change
Nikkei 225 Index10'494.651.2
Hang Seng Futures21'015.36-2.69
Shanghai Index2'803.97-1.36
KOSPI Index1,684.91-1.59
FTSE futures5'107.50-0.23
CAC futures3'822.50-0.01
DAX futures5'696.00-0.22

World Markets Current Level % Change
Crude wti68.3-0.97
Gold1'010.400.2
Silver16.77-0.36
USD Index76.350.39
VIX23.491.78

Todays Calender Estimates Previous Country / GMT
Merchandise Trade Exports-36.5-36.5JN/07:50
All Industry Activity Index0.80%0.10%JN/12:30


Currency Tech

AUDUSD
R3: 0.8929
R2: 0.8827
R1 0.8762
C 0.8702
S1 0.8660
S2 0.8623
S3 0.8521

USDJPY
R3: 93.21
R2: 92.16
R1: 91.72
C: 90.98
S1: 90.67
S2: 90.06
S3: 89.01

NZDUSD
R3: 0.7492
R2: 0.7361
R1: 0.7273
C: 0.7199
S1: 0.7148
S2: 0.7100
S3: 0.6969

USDSGD
R3: 1.4264
R2: 1.4192
R1: 1.4164
C: 1.4161
S1: 1.4092
S2: 1.4048
S3: 1.3976

  • S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot