Daily Market Review — 01/06/2016
US Manufacturing PMI will be today’s key event.
The AUD strengthened significantly during the last two days, aided greatly by better than expected Australian economic statistics. Building Approvals and Private Sector Credit showed significant growth in April. On the flipside, US Personal Income and Spending data were better than anticipated, which put some pressure on the pair. Today so far, Chinese Manufacturing PMI was published with the result being 50.1, just above the vital expansion/contraction point. Additionally, Australia’s GDP for Q1 2016 showed growth both on MoM and YoY basis. Both of these reports have so far buoyed the currency pair (0.7262, +0.40%). Further trading dynamics will depend on the upcoming US Manufacturing PMI and the ISM Manufacturing PMI scheduled for 13:45 and 14:00 GMT.
Resistance: 0.7310, 0.7340, 0.7364
Support: 0.7258, 0.7215, 0.7175
The euro rose especially against its British counterpart during yesterday’s trading session thanks to positive data concerning the German labor market. Additionally, the Eurozone CPI almost matched all forecasts. Meanwhile, the results of yet another Brexit poll was published. 45% feel the country should exit with 42% against such a move. Understandably, this put significant pressure on the GBP versus all the other currencies. Today’s attention should be on the French, German and the Eurozone Manufacturing PMI reports at 7:45 GMT. Additionally, the U.K. Manufacturing PMI is scheduled for 8:30 GMT.
Resistance: 0.7703, 0.7749, 0.7799
Support: 0.7636, 0.7587, 0.7545
US stock markets closed with mixed results yesterday. The biggest impact on the markets came with better than expected US data on personal spending and income. A solid US Core PCE Price Index additionally added some pressure. However, poor Chicago PMI data caused stock indexes to rise. Today, US economic data will certainly affect the markets.
Resistance: 4532.70, 4543.64, 4555.80
Support: 4500.29, 4485.31, 4469.46
Yesterday, the precious metal rebounded from three month lows due to profit taking. After almost a 16% rise in Q1, it fell immediately after the publication of the US Fed Meeting Minutes as it seems that a rate hike is imminent. When a rate hike occurs or is even being speculated gold becomes less attractive. Today’s trading dynamics will depend on the US data.
Resistance: 1218.92, 1230.95, 1243.14
Support: 1207.83, 1198.95, 1190.39