Market Brief
The Reserve Bank of Australia (RBA) kept their benchmark interest rate unchanged at 4.50% this morning. Amidst the rather healthy data releasing from Australia (the recent Q2 GDP), the fourth straight pause was largely expected. Growth down under has been close to trend, the inflation level is close to target and with the global growth recovery still shaky, policymakers from down under don’t want to be too aggressive in tightening monetary policy. The Aussie has been weaker across the board this morning, with the AUDUSD shedding 50 pips since market opening to hit an intraday low of 0.9124. Some of this weakness can most certainly be attributed to the unfolding of the current political battle for majority in Australia’s lower house, in which it seems PM Julia Gillard’s Labor party will retain government and pursue their imposed tax on mining companies. AUD traders will no doubt be keeping an eye on this developing story.
In other news, the Bank of Japan (BoJ) kept their overnight interest rates unchanged at 0.10% at this morning’s central bank meeting. Governor Shirakawa left the bank loan facility at 30 trillion Yen after it had been increased on August 30 during an emergency meeting. The Nikkei is down -0.81% this morning, dragged lower by automaker shares such as Nissan whose export business continue to be affected by a continually rising Japanese Yen. The USDJPY is hovering around that 84.00 level (84.04 at the time of writing) and from here, the next target would be a re-test of 83.60 levels.
Up ahead we await the release of the MoM/YoY German factory orders data due out at 1000 GMT.
| Global Indexes | Current Level | % Change |
| Nikkei 225 Index | 9,226.00 | -0.81 |
| Hang Seng Index | 21,357.11 | 0.01 |
| Shanghai Index | 2,688.51 | -0.29 |
| S&P future | 1,101.20 | -0.21 |
| DJIA futures | 10,420.00 | -0.15 |
| FTSE futures | 5,430.00 | 0.24 |
| DAX futures | 6,150.00 | 0.34 |
| World Markets | Current Level | % Change |
| Crude wti | 73.7 | -1.21 |
| Gold | 1,249.65 | -0.03 |
| Silver | 19.82 | -0.1 |
| USD Index | 82.37 | 0.36 |
| VIX | 21.31 | -8.11 |
| Todays Calender | Estimates | Previous | Country / GMT |
| German Factory Orders YoY (nsa) | 20.60% | 24.60% | EUR / 1000 |
| German Factory Orders MoM (sa) | 0.50% | 3.20% | EUR / 1000 |
Currency Tech
EURUSD
R 2: 1.2924
R 1: 1.2839
CURRENT: 1.2793
S 1: 1.2772
S 2: 1.2690
USDJPY
R 2: 84.41
R 1: 84.26
CURRENT: 84.04
S 1: 84.00
S 2: 83.60
GBPUSD
R 2: 1.5496
R 1: 1.5413
CURRENT: 1.5368
S 1: 1.5336
S 2: 1.5256
AUDUSD
R 2: 0.9221
R 1: 0.9183
CURRENT: 0.9130
S 1: 0.9060
S 2: 0.9000
- S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot
