Daily Market Review – 02/08/2016
U.S. Personal Spending data will be today’s main event
The pair trended negatively yesterday as traders were waiting for the outcome of this morning’s Reserve Bank of Australia’s interest rate meeting. The rates dropped from 1.75% to 1.5% thanks to long period of fairly low inflation. Against this backdrop, the AUD fell on a broad market spectrum. Negative trade balance and worse than expected Building Approvals data additionally pushed the pair down.
Later on today at 23:50 GMT, Japan’s Monetary Policy Meeting Minutes, should impact the markets.
Resistance: 77,48, 78,12, 78,68
Support: 76,74, 76,22, 75,40
The pair traded in a sideway range. Manufacturing PMIs for France, Germany Eurozone came out slightly above analysts’ expectations. A US Manufacturing PMI pointed to modest growth in this sector of the economy. However, US ISM manufacturing PMI disappointed investors. The Eurozone producer price index and US Personal Spending data, scheduled for 9:00 and 12:30 GMT should impact the markets today.
Resistance: 1,1196, 1,1236, 1,1297
Support: 1,1148, 1,1120, 1,1080
Ferrari will present its quarterly report today before the markets open. According to forecasts its earnings per share should reach $0.50, and total revenue hitting $855.6 million. If the actual figures exceed the forecast, its share price could rise to $48.
Resistance: 46,51, 47,73, 48,72
Support: 44,47, 43,22, 42,05
Gold rose slightly yesterday thanks to a slew of mixed US economic statistics. Manufacturing PMI matched forecasts but its ISM Manufacturing PMI performed poorly. Furthermore, the Fed’s John Williams said that the rates may increase twice this year. Federal Reserve Bank of Dallas President Robert Kaplan said a rate increase at the next policy meeting in September is still possible even after a report last week showed second-quarter GDP growth was weaker than expected.
Today’s trading will depend on US inflation data scheduled for 12:30 (GMT).
Resistance: 1354,58, 1359,97, 1368,74
Support: 1346,74, 1340,37, 1333,80