Daily Market Review — 05/08/2015
Commodity Currencies Are in Correction
The major event for the New Zealand currency yesterday was a release of data on the labor market, namely the Unemployment Rate and the Employment Change. According to analysts’ average forecast the Unemployment Rate should’ve rose to 5.9% in the second quarter compared with 5.8% in the first. As for the second indicator, the average forecast was a 0.5% gain in the second quarter compared with 0.7% in the first. In reality, the data on the Unemployment Rate was in line with expectations, but the Employment Change was less evident in the second quarter and increased only by 0.3%. This fact put pressure on the New Zealand currency. Today, market participants should pay attention to the ADP Employment Report, which will be released at 12:15 (GMT).
Resistance: 0.6548, 0.6565, 0.6600
Support: 0.6517, 0.6503, 0.6497
Yesterday’s trading session began with the Russian ruble growth against the US dollar, as oil prices rose after the fall on Monday. The growth of oil prices is likely corrective in its nature. And with that, such dynamics of oil prices supports the Russian currency, since almost half of Russia’s budget is based on the energy exports. If you look at this pair in the medium term, the prospects for the Russian currency aren’t very bright. The reason for this lies in upcoming debt payments.
Resistance: 62.7954, 63.3073, 64.0133
Support: 61.9136, 61.1103, 60.4139
During yesterday’s trading session the major US stock indices recovered the losses from falling oil prices. Yesterday’s trading session stock indexes finished in red, as one of the members of the US Federal Reserve indicated that September is the best time to raise short-term interest rates. This can lead to a drop in the US stock market.
Resistance: 17456.96, 17553.45, 17718.90
Support: 17406.36, 17371.06, 17319.28
Light Sweet Crude Oil Futures
Yesterday’s trading session oil prices were in correction, recovering after a fall to new long-term lows on Monday. The dynamics of oil prices yesterday was influenced by the publication of the US API Crude Oil Inventories. It turned out that last month they fell by 2.4 million barrels, which could support oil quotes as this in the long term lead to the balancing of supply and demand in the world oil market. It should be noted that the attention of market participants now focused on the publication of similar statistics from the US Department of Energy today at 14:30 (GMT).
Resistance: 46.18, 46.69, 47.33
Support: 45.40, 45.05, 44.50