Daily Market Review — 02/11/2015
The Manufacturing PMI in China Will Be the Focus of Investors Today
The pair has slightly increased during Friday’s trading session, triggered by the weakening of the US currency against the background of negative statistics on Personal Spending and Income. According to the data, Personal Spending and Incomes rose less than expected. On the other hand, the Personal Consumption Expenditures Price Index, which plays a key role in Fed’s interest rate policy, came out exactly as forecasted. The pair continues to trade on a positive trend this morning, due to overwhelmingly positive data coming from China, Australia’s largest trading partner. More exactly, the Markit/Caixin Manufacturing PMI was 48.3 against the forecast of 47.5. It is also worth noting that the number of Building Permits in Australia rose quicker than most observers had expected. For the short term, the dynamics of the AUD/USD may be affected by the publication of the ISM Manufacturing Index in the United States at 15:00 (GMT).
Resistance: 0.7158, 0.7205, 0.7241
Support: 0.7110, 0.7066, 0.7014
The Swiss franc strengthened against the US currency on Friday mostly due to negative US statistics. The PCE Price Index rose in line with expectations, while the Personal Income and Spending rose at a slower pace. In addition, the Consumer Confidence Index fell unexpectedly. The current dynamics of the USD/CHF will be heavily influenced by the Retail Sales and Manufacturing activity indexes in Switzerland, which are scheduled for 08:15 (GMT) and 08:30 (GMT), respectively. Also today will see the release of the ISM Manufacturing Index at 15:00 (GMT). Further, the speech of Fed member Williams held at 17:00 (GMT) could have an impact as well.
Resistance: 0.9910, 0.9958, 1.0015
Support: 0.9817, 0.9737, 0.9648
The major European stock markets fell slightly on Friday. The dynamics of trading were influenced by data on the Consumer Price Index in the Eurozone, which remained unchanged compared to last month. The same index, but with food and energy excluded, rose slightly more than forecasted. In addition, the Unemployment Rate in the Eurozone fell unexpectedly to 10.8% compared with a forecast of 11.0%. However, German Retail Sales disappointed investors and fell short of the predicted value. Today’s dynamics of trading will be affected by the ongoing quarterly reporting season, as there are no major economic announcements in the Eurozone/UK area today.
Resistance: 6386.75, 6421.87, 6466.41
Support: 6308.54, 6249.36, 6210.94
Quotes of precious metals continued their decline in the end of last week. The fall began on Wednesday amid US Federal Reserve’s statement on the possibility of a rate hike at the next meeting, scheduled for December this year. Gold is very sensitive to any changes in the monetary policy of the US, because its price is nominated in the US currency. In the case of a rate increase, Gold becomes less attractive to investors compared with other assets. Friday’s economic statistics on the US economy, despite being negative, caused a new wave of Gold sell-offs. Today’s dynamics of trading will likely be influenced by the publication of the ISM Manufacturing index at 15:00 (GMT), as well as the speech of the Fed member Williams, scheduled for 17:00 (GMT).
Resistance: 1144.42, 1151.99, 1158.30
Support: 1138.84, 1133.26, 1126.40