Daily Market Review – 10/08/2016
New Zealand Interest Rate Decision will be today’s most significant event
The AUD declined against its New Zealand counterpart yesterday thanks to a poor National Australia Bank Business Confidence survey.
Later on today at 21:00 GMT the Reserve Bank of New Zealand will announce its interest rate decision. Analysts believe it will be cut by 25 basis points.
Resistance: 1.0682, 1.0715, 1.0746
Support: 1.0647, 1.0618, 1.0579
The pair trended downward yesterday as the US currency declined overall against many other major currencies. Earlier yesterday, initial data showed that U.S. nonfarm productivity dropped by 0.5% in the second quarter, disappointing expectations for a 0.4% rise, after a 0.6% slip in the three months to March. This was the primary reason the dollar fell. Additionally, Japanese Machine Tool Orders came out better than what was anticipated, so the yen received some support.
U.S. JOLTS Job Openings, scheduled for 14:00 GMT should impact the markets today.
Resistance: 101.96, 102.82, 103.93
Support: 100.68, 99.99, 99.04
Major stock indexes rose yesterday thanks to positive earnings reports and a growth in oil prices. Data pertaining to industrial production in the UK matched most forecasts. The Bank of England policymaker Ian McCafferty said that more rate cuts may be on the way if the economy worsens, which caused European stock markets to hit multi-month highs.
Today’s dynamics will depend on the mood of investors.
Resistance: 6814.90, 6845.40, 6875.00
Support: 6756.00, 6725.90, 6690.10
Brent Oil Futures
After the markets closed yesterday the American Petroleum Institute said that oil inventories in the U.S. rose by a shocking 2.1 million barrels last week. Additionally, OPEC is expected to show in its September meeting that its overall oil supply from its 14-member association has risen to nearly an eight-year high. Both of these events unsurprisingly caused prices to fall this morning
At 14:30 GMT today, the US will present its weekly Crude Oil Inventories report.
Resistance: 45.31, 45.75, 46.25
Support: 44.50, 44.00, 43.54