Daily Market Review — 04/08/2015

Daily Market Review — 04/08/2015

Commodity Currencies Are On the Recovering Track

Forex

USD/CAD

USDCAD

The Canadian dollar continues to be under pressure as economic data on Canadian GDP May, published last Friday, showed that the index decreased by 0.2%, while most analysts forecast that it will remain unchanged. It is worth noting that this is the second monthly decline in a row. The economic calendar for today for Canada is empty. Market participants should pay attention to the publication data on Factory Orders in the US at 14:00 (GMT), as well as data on API Crude Oil Inventories at 20:30 (GMT).

Resistance: 1.3175, 1.3200, 1.3300
Support: 1.3143, 1.3113, 1.3043

AUD/USD

AUDUSD

The major event today for the pair was the announcement of the decision of the central bank of Australia on the basic interest rate and the publication accompanying statement at 04:30 (GMT). It was also influenced by the publication of data on retail sales and trade balance of Australia, which came out better than the average forecast of analysts. Australia’s central bank left unchanged its key interest rate at 2.0%. In the accompanying statement, Governor Glenn Stevens noted that further lowering of interest rates could trigger a rise in property prices in major Australian cities, as well as expose the economy to new threats. This message gave local currency so needed support.

Resistance: 0.7363, 0.7391, 0.7413
Support: 0.7262, 0.7253, 0.7236

Stock Market

DAX Futures

DAX

The new trading week the major stock indexes in Europe opened higher. Positive statistics from Germany gave impetus to stock markets. The final estimate of the index of business activity in the manufacturing sector was published yesterday. The index rose in July to a level of 51.8, which is slightly above the average forecast of analysts at the level of 51.5. The same gauge was published for the euro area as a whole. The indicator in the final assessment rose to 52.4 against the average forecast of analysts at the level of 52.2. Such positive data outweighed the fall in the stock markets of Greece, which opened after being closed since June 29 of this year.

Resistance: 11463.32, 11544.85, 11628.23
Support: 11366.97, 11244.68, 11027.89

Commodities

GOLD

Gold

Gold prices continue to remain under pressure, caused by continuously strengthening of the US currency. Another impetus to the growth of the US dollar was once head of the US St. Louis Fed President James Bullard said that currently is the moment when there should not be any delay on the interest rates increase. The growth of the US dollar yesterday supported by the data on Personal Income and Spending, as well as the PCE price index, which reached the level of forecast. Recall that the latter figure is preferable for the US Federal Reserve in the process of making decision to change rates.

Resistance: 1097.52, 1101.80, 1109.67
Support: 1080.71, 1077.10, 1040.00