Daily Market Review — 01/09/2015

Daily Market Review — 01/09/2015

Market Participants Will Be Focusing on Reserve Bank of Australia Decision, Unemployment Rate in Germany and Canadian GDP

Forex

AUD/USD

AUDUSD

During yesterday’s trading the pair showed a negative trend, which was caused by the fall of Chinese main stock index. Recall that Australia is a strategic trading partner of China. Today, the players closely followed the announcement of the results of the meeting of the Reserve Bank of Australia’s main interest rate. As most experts predicted, the central bank left unchanged the parameters of monetary policy, keeping interest rates at 2%. In addition, the RBA Governor Glenn Stevens noted that in the current circumstances, monetary policy should be soft. He also added that he is concerned about the overheating of the housing market. Some influence also had the publication of building permits in Australia. According to the data, they rose by 4.2% against an average forecast of 2.5%. Today, the dynamics of the pair can be affected by the data on the ISM Manufacturing, scheduled for 14:00 (GMT).

Resistance: 0.7151, 0.7203, 0.7248

Support: 0.7081, 0.7049, 0.7018

 

USD/CAD

USDCAD

During the first half of yesterday’s trading session the pair showed growth that was caused by the overall strengthening of the American currency. But, since the beginning of the American session, the Canadian dollar began to rapidly regain the losses it suffered earlier. Such dynamics were caused by the sharp rise in oil prices, which triggers the Canadian currency. At yesterday’s trading quotes of the “black gold” rose sharply against the publication of the OPEC bulletin where the organization stated it is ready to begin negotiations with other oil exporters to stabilize the global oil market. Against this background, many oil market participants began opening long positions on the asset in the hope that this statement will not remain just a promise in words. Today, market participants will follow the publication of Canada’s GDP, which is scheduled for 12:30 (GMT). This indicator will be released on a monthly, quarterly and annual basis.

Resistance: 1.3165, 1.3250, 1.3300

Support: 1.3115, 1.3058, 1.3013

 

Stock Market

DAX Futures

DAX

Yesterday, the major European stock exchanges were trading in narrow ranges. Investors are concerned about the inability of the Chinese government to support the domestic stock market. Also, investors think that the slowdown of the Chinese economy is worse than it was expected. The focus of the players in the stock markets remains on the statements of the Fed members at Jackson Hole Symposium. They repeatedly expressed opinion that the latest situation in the world financial markets will not affect the rate increase this year, although the FOMC will closely follow the developments. Today, the dynamics of stock markets may be influenced by the publication of data on the labor market in Germany, scheduled for 07:55 (GMT).

Resistance: 10313.44, 10654.15, 10810.00

Support: 9903.87, 9715.39, 9316.69

 

Commodities

GOLD

Gold

Yesterday gold prices fell slightly as investors once again began to analyze the recent strong data on US economic growth. It was also caused by the continuation of the closure of long positions after the rally in August. Recall that in the past month against the backdrop of slowing global economic growth, investors were buying gold as a safe asset. After the economic symposium, investors again began to anticipate a rate hike by the US Federal Reserve at its meeting in September. Special attention will be given to Friday’s government report on new jobs created in the US economy. This report will clarify how likely is the change of the parameters of monetary policy at the September meeting.

Resistance: 1146.19, 1156.43, 1167.97

Support: 1132.70, 1125.30, 1117.52