Daily Market Review — 01/03/2016
Chinese PMIs will be the main events today
The Australian currency has strengthened somewhat against the US dollar yesterday, following the dynamics of commodity areas. Also, some pressure on the US currency put weak data on U.S. Chicago PMI, which amounted to 47.6 versus an average forecast of 53. However, today’s trading session, the pair opened with a sharp decline after the publication of China Manufacturing PMI, which is the largest trading partner of Australia. Thus, according to released data, the figure was 49 against the expectations of experts at the level of 49.3. It is worth noting that this index is below 50 for the seventh consecutive month. Meanwhile, the pair was able to recover all losses after the announcement of Australia interest rate at unchanged level − 2%. At the same time, the head of Reserve Bank of Australia Glenn Stevens noted that the low inflation gives possibility for further monetary easing. In the future dynamics of the pair may depend on the publication of U.S. ISM Manufacturing PMI at 15:00 (GMT).
Resistance: 0.7185, 0.7215, 0.7255
Support: 0.7108, 0.7068, 0.7028
The Canadian currency at the end of yesterday’s trading day significantly strengthened against the US dollar. This was due to the positive dynamics of oil quotations, and Canadian dollar directly depends on it. In addition, data on the U.S. Chicago PMI and U.S. pending home sales fell short than it was expected. Also, the pressure on the pair put a positive statistics on the Canadian economy. Thus, according to the presented data, Canada Industrial Product Price Index (IPPI) showed a positive trend. Today, the focus of market participants will be on Canadian GDP data that will be presented at 13:30 (GMT).
Resistance: 1.3585, 1.3652, 1.3733
Support: 1.3480, 1.3408, 1.3296
Yesterday’s trading day major European stock indexes closed with mixed trend. People’s Bank of China on Tuesday reduced the reserve requirement ratio for banks in order to maintain a high level of liquidity in the national economy. That fact had a positive influence. In addition, some support provide weak data on consumer price inflation in the Eurozone in February, which allow investors to count on an extension of stimulus measures from the ECB at a meeting scheduled for March 10. Today, the dynamics of trade may be affected by the publication of unemployment rate in Germany and the Eurozone data 08:55 (GMT) and 10:00 (GMT), respectively.
Resistance: 9505.18, 9571.84, 9644.38
Support: 9336.57, 9254.22, 9118.97
Gold prices rose significantly at yesterday’s session, the growth was due to falling stock markets and a certain weakening of the US currency. The US dollar fell after the publication of weak data on U.S. Chicago PMI, which in February dropped to the level of 47.6 against the average forecast of 53. Gold prices have risen this year by 16% due to the instability of global financial markets, as well as with expectations that the US Federal Reserve would not rush to another rise in interest rates. Today, the dynamics of trading will depend on the situation on the stock markets. Also, some influence may provide the publication of U.S. ISM Manufacturing PMI at 15:00 (GMT).
Resistance: 1248.33, 1256.18, 1263.06
Support: 1236.49, 1225.93, 1216.80