Daily Market Review — 10/11/2015

Daily Market Review — 10/11/2015

The Inflation Report in China Is the Highlight of the Day

Forex

AUD/USD

AUDUSD

The pair has been in correction mode yesterday, after Friday’s fall.  This occurred on the background of a spectacular release of the US labor market report. Yesterday’s news calendar was empty, so the AUD/USD responded to technical signals. Today’s dynamics of the pair were influenced by data on Home Loans in Australia, slightly above the analyst forecast. In addition, the National Australia Bank’s Business Confidence came out below expectations. Meanwhile, the Consumer Price Index in China, Australia’s largest trading partner, didn’t have any serious impact on the pair. There are no important economic statistics scheduled for today, so the pair will react to commodity markets. At the same time, market participants should pay attention to the speech of Fed member Evans, scheduled for 19:30 (GMT).

Resistance: 0.7111, 0.7157, 0.7221
Support: 0.7022, 0.6981, 0.6935

NZD/USD

NZDUSD

The NZD/USD showed mixed trends yesterday. This was caused by statements from Fonterra’s President, the largest milk producer, that the investment climate will not be positive for the business. Nevertheless, market participants will continue to analyze the report on the US labor market. Today’s dynamics of the pair can be influenced by Graeme’s Wheeler speech, the representative of the Reserve Bank of New Zealand, and the RBNZ Financial Stability Report, scheduled for 20:00 (GMT). There is no important news on US economy scheduled for today.

Resistance: 0.6571, 0.6622, 0.6697
Support: 0.6497, 0.6453, 0.6403

 

Stock Market

FTSE Futures

FTSE

During yesterday’s trading, the major European stock indexes fell slightly amid slowing down of exports from China. Note that exports have been falling for the fourth month in a row. This suggests that there are some ongoing problems in the global economy. The statement coming from Fed member Rosengren also had an impact. He commented on the US interest rate situation, noting that December would be appropriate time for a hike. Data on Current Account and Trade Balance in Germany, as well as the Sentix Investor Confidence in the Eurozone had an impact as well, as they surpassed expectations. The Consumer Price Index in China is the most notable event happening today and will likely have an impact.

Resistance: 6292.16, 6334.31, 6375.44
Support: 6229.45, 6198.61, 6164.25

 

Commodities

GOLD

Gold

Quotes for the precious metal rebounded somewhat after two weeks of falling down. This was caused by gold purchases at more attractive prices. It is worth noting that gold prices have come under pressure due to expectations of a rate hike by the US Federal Reserve. Friday’s report on the labor market has significantly increased this risk. However, a significant further fall should not be expected, since the potential rate hike is already priced in. Some analysts believe that next year the price of gold will recover due to increased demand for the metal, as well as  a decreased chance for further rate hikes from the Fed. Today’s dynamics of quotations may be affected by the speech of Fed member Evans, scheduled for 19:30 (GMT).

Resistance: 1113.92, 1102.70, 1095.79
Support: 1085.46, 1077.36, 1070.00

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