Daily Market Review — 25/09/2015
The Release of the Final Estimate of the US GDP Is the Main Event of the Day
Despite the mixed statistics on the IFO Current Assessment, Expectations and Business Climate, the pair showed strong growth. The downward momentum the pair received after the publication of US data on the number of Initial Jobless Claims, which exceeded the expectations of experts. The markets were also preparing for, perhaps, the most important event of the day, namely the speech the US Federal Reserve Chairwoman Janet Yellen. During her speech, the head of the American regulator gave a positive assessment of the national economy. Besides, she added, she anticipates a rate hike later this year, but this increase will be gradual. These statements have supported the US dollar. Today the focus of market participants will be on the publication of the final estimate of US GDP, which is scheduled for 12:30 (GMT).
Resistance: 1.1212, 1.1257, 1.1329
Support: 1.1131, 1.1104, 1.1062
In yesterday’s trading the pair showed mixed trends. At the beginning of the trading day the US currency strengthened against its Australian counterpart, but then switch to falling. This was caused by the publication of mixed statistics on the US economy. According to the data, the US labor market is showing signs of steady growth. And with that, the Durable Goods Orders fell short of the predicted numbers. The US currency got a strong support from a statement the head of the Fed Janet Yellen yesterday, in which she made it clear that rates will be raised later this year. Today, the dynamics of the AUD/USD may be affected by the publication of the final estimate of US GDP at 12:30 (GMT).
Resistance: 0.7057, 0.7094, 0.7142
Support: 0.6992, 0.6945, 0.6907
During yesterday’s trading session the major European stock exchanges were under pressure. Such dynamics was caused by a drop in shares of automakers. Initially, the company Volkswagen AG was accused of falsifying emission tests, and yesterday BMW AG was blamed in media for the same reason. And with that, the fall of stock indices restrained previously published data from the IFO, which showed some improvement in the business climate in the Eurozone. Meanwhile, many analysts say stock markets may fall further amid the uncertainty in the global economy.
Resistance: 9706.14, 9776.16, 9888.12
Support: 9464.45, 9322.51, 9208.62
Yesterday’s trading was a great example of how investors use gold as a safe-haven asset. Against the background of uncertain prospects for the global economy, the gold price rose significantly, breaking the psychological level of $1150.00 per ounce. The growth only intensified after the opening of the US session, which experienced a general decline yesterday. Investors are seeking protection for their assets using less risky investments. Some downward pressure also had a speech of the Federal Reserve Chairwoman Janet Yellen, who suggested that rates could be raised before the end of this year.
Resistance: 1150.95, 1156.50, 1163.31
Support: 1141.60, 1136.05, 1126.86