Daily Market Review — 08/09/2015
Reports on GDP in Japan and Trade Balance in China Are Main Events of the Day
Yesterday the pair was traded in a narrow range in the absence of drivers for particular movements. Recall the US markets were closed yesterday because of the Labor Day. Today’s trading session the pair opened with growth against the background of positive statistics from China. According to the data, the trade balance increased this month to 60.24 billion yuan against analysts’ expectations at the level of 48.2 billion. This suggests that despite the crisis, the Chinese economy continues to be in good condition. As for the Australian economic statistics, the index of business sentiment from the National Australia Bank came in at 1, below analysts’ forecasts at level 4. There is no important statistics today, which could have significant impact on the dynamics of the pair. The only report worth attention is US labor market conditions index, which is scheduled for 14:00 (GMT).
Resistance: 0.6981, 0.7062, 0.7151
Support: 0.6906, 0.6860, 0.6831
Throughout yesterday the pair traded with a rising character. Today, the pair changed direction. Such dynamics were caused by the publication of positive statistics from Japan. According to the data, the GDP in the second quarter declined less than expected by most analysts. Final estimate of GDP was –0.3% against the forecast of –0.4% level. The annualized rate was -1.2% versus analysts’ expectations at -1.8%. Some influence also had Eco Watchers Survey (current and outlook), which came out at the level of 49.3 and 48.2 against the forecast at levels of 51.6 and 51.9 respectively. There is no important news scheduled for the US economy, except Labor Market Conditions Index at 14:00 (GMT).
Resistance: 120.70, 121.41, 122.42
Support: 118.83, 118.23, 116.20
Yesterday’s trading day, major US stock indexes were experiencing the upward momentum, recovering losses suffered on Friday. Despite yesterday’s drop in the main stock markets of China, the Chinese officials has stated that the period of increased turbulence in the markets comes to an end, and a stabilizing of the yuan is a sign for that. US markets were closed yesterday due to a holiday, so trading volumes were low. There are no important news scheduled today and that could have a significant impact on the dynamics of the broader market.
Resistance: 1958.18, 1992.09, 2028.96
Support: 1908.17, 1867.48, 1830.61
Light Sweet Crude Oil
Yesterday’s trading day quotes of “black gold” spent in a downtrend. The reason for this is another drop in the stock markets in China. In addition, investors are worried about a significant oversupply in the world oil market. Also the sanctions against Iran will be lifted soon, which increase a surplus of oil. It is worth noting that Saudi Arabia yesterday announced budget cuts due to low oil prices. This does not affect health and education, as well as structural projects. Due to the decrease in demand, OPEC lowered the selling price of oil for consumers in US, Europe and Asia. It is also worth adding that, despite the fact that last week the number of active drilling rigs decreased by 13 units, oil continues to trade with a negative trend.
Resistance: 45.85, 47.19, 48.37
Support: 43.39, 41.79, 40.47