Daily Market Review — 13/04/2016
Bank of Canada Interest Rate Decision Will Be the Main Event Today
The pair showed a negative trend yesterday, which was due to increase in prices of oil, and Canadian currency directly dependent on oil. Nevertheless, the speech of US Federal Reserve leaders also provided some influence. Fed leaders talked about the need for further monetary tightening, but at a slower pace. Today, investors will pay attention to data on the index of producer prices and retail sales in the US, which will be presented at 12:30 (GMT). Meanwhile, traders will watch out for Bank of Canada’s decision on interest rates, which will be announced at 14:00 (GMT). According to average forecasts of experts, the Canadian regulator will not make changes to the settings of monetary policy, especially due to the recent strong reports.
Resistance: 1.2835, 1.2909, 1.2998
Support: 1.2698, 1.2600, 1.2529
The Australian Dollar strengthened against the US currency during yesterday’s trading day following the positive dynamics of commodity areas. The Australian currency provided some support on the business sentiment in the national economy, but the average forecast of experts was higher. In addition, some pressure on the US currency provided data on the index of import prices and the US federal budget, which were worse than analysts’ expectations. Meanwhile, data on China trade balance provided some support. Thus, according to the presented data, the volume of exports and imports grew more than expected, pointing to economic recovery. Further dynamics of pair will depend upon the publication of the American economic statistics. It should be said that market participants are waiting for data on Australian labor market, which will be presented tomorrow morning.
Resistance: 0.7713, 0.7758, 0.7800
Support: 0.7668, 0.7635, 0.7597
Major US stock indices showed some growth yesterday, supported by the rise in price of energy companies’ shares. Investors still pay a lot of attention to the quarterly reporting season, which started this Monday. Meanwhile, data on the index of import prices recorded the largest increase since May last year. This trend indicates that recovery of the oil price increases inflationary pressures in the country, bringing it closer to the Fed’s target level. The US Federal budget which was released yesterday, showed deficit’s increase. The current dynamics of stock markets will depend on investor’s mood and on commodity markets’ situation.
Resistance: 17690.11, 17750.29, 17820.19
Support: 17606.85, 17550.07, 17466.39
Light Sweet Crude Oil Futures
Quotations of “black gold” went up to the maximum level of the current year − $42 per barrel. Speculations that the largest oil-producing countries will be able to agree on measures to support the oil market in the meeting, scheduled for April 17, provided some support to the market. The meeting is to be held in Doha, Qatar. Meanwhile, some pressure put inventory data from the US Institute of Petroleum, the stocks grown by 6.2 million barrels the forecast was 1 million. Today, US Department of Energy will present the similar report at 14:30 (GMT).
Resistance: 42.20, 43.00, 44.40
Support: 40.70, 39.80, 38.30