Daily Market Review — 09/03/2016
Canadian and New Zealand’s interest rate decision will be the main events today
At yesterday’s session the US dollar strengthened significantly against the Canadian currency. Such dynamics was caused, mainly, by the recovery of the oil prices’ fall, as well as the publication of negative statistics on the Canadian economy. Canada building permits fell by 9.8% against (the expectations was 2%). However, the housing starts in February rose to 212,600 against an average forecast of experts at the level of 180 thousand. The current dynamics of pair will depend on Bank of Canada’s decision on the interest rate, which will be published at 15:00 (GMT). At the same time, it will be Canadian regulator’s statement. According to average forecasts the rate will remain unchanged at 0.5%.
Resistance: 1.3499, 1.3587, 1.3657
Support: 1.3369, 1.3260, 1.3130
The New Zealand dollar fell yesterday against US currency due to the fall in commodity areas. In addition, a negative data on China trade balance put some pressure. Meanwhile, NFP report continues to provide support to the marker. The current dynamics of pair will depend on the situation on the commodity markets. Meanwhile, Reserve Bank of New Zealand’s interest rate decision which will be presented at 20:00 (GMT), will provide a significantly influence. At the same time, there will be a RBNZ governor Graeme Wheeler’ press conference. Most experts predict that the regulator will leave rates unchanged at 2.5%.
Resistance: 0.6747, 0.6773, 0.6801
Support: 0.6712, 0.6686, 0.6661
Yesterday major European stock markets fell slightly, which was caused by weak statistics on the Chinese trade balance, as well as the resumption of oil prices’ falling. However, some support provided data on industrial production in Germany, which were better than forecasts of experts. In addition, Eurozone GDP in the final assessment has grown at a faster pace than expected, most of the experts. Meanwhile, the focus of investors’ attention will be on tomorrow’s ECB meeting. The market’s participants expect that stimulus measures will be expanded and it will provide support.
Resistance: 9710.74, 9766.51, 9824.21
Support: 9608.82, 9526.12, 9464.58
Precious metal’s quotes showed some drop yesterday, but they are remained at the highest level in the last year. Support for gold provided a weak dollar and falling of stock markets caused by weak data on China’s trade surplus. Since the beginning of this year, gold prices have risen by 20%, due to financial instability in the world economy. In addition, investors are rely on the fact that the US Federal Reserve will not rush with further rate hikes. Yesterday report of the outflow of gold from investment funds put some pressure. Meanwhile, the focus of investors is on the ECB meeting, which will be held tomorrow. After that, there will be one more important event − US Federal Reserve meeting, scheduled for March 15-16.
Resistance: 1259.14, 1267.93, 1279.35
Support: 1248.26, 1237.26, 1225.45