Daily Market Review — 07/06/2016
The Australian Rate Decision was today’s main event.
The pair trended positively yesterday as better than expected Australian economic data spurred on the AUD. This morning the Reserve Bank of Australia announced its rate decision. As was expected no changes were made, with the rates remaining at 1.75%. One remark that was certainly noted was that inflation levels will remain low for quite some time. Nevertheless, exports showed growth causing the AUD to strengthen significantly. Further trading dynamics will depend upon the results of the Japanese Q1 GDP, schedule for publication at 23:50 GMT.
Resistance: 80.16, 80.54, 81.00
Support: 79.48, 79.00, 78.43
The pair is trending upwards after Friday’s disappointing NFP report and yesterday’s excellent Sentix Investor Confidence report. The Eurozone Revised Q1 GDP, scheduled for 9:00 GMT should shape today’s trading dynamics.
Resistance: 1.1390, 1.1445, 1.1482
Support: 1.1325, 1.1288, 1.1242
Yesterday most US stock indices rose, with rising energy shares leading the charge. Additionally, Federal Reserve Chair Janet Yellen’s timid speech triggered further growth in the stock markets as she gave a rather uncertain outlook on the US economy. Unsurprisingly most leading analysts concluded the Fed will be in no rush to increase the interest rate levels. It should be noted that the rise in the stock markets caused oil prices to rise and the US dollar to fall. Today’s trading dynamics will heavily depend on investor sentiment.
Resistance: 17979.06, 18028.87, 18080.86
Support: 17905.52, 17849.10, 17775.46
Gold continues to trade at a two-week thanks to Janet Yellen’s bleak speech on the uncertain status of the US economy after Friday’s disastrous monthly employment report. The veiled implications are the US Federal Reserve will be in no inherent rush to raise the rates. Today, data on U.S. Unit Labor Costs, scheduled for 12:30 GMT should impact trading.
Resistance: 1248.59, 1259.97, 1268.92
Support: 1234.09, 1223.25, 1211.19