Daily Market Review — 11/01/2016

Daily Market Review — 11/01/2016

The Publication of the Chinese Inflation Rate Will Be in the Spotlight Today

Forex

USD/CAD

USDCAD (00000002)

During Friday’s session, the Canadian dollar fell modestly against the US dollar, which contributed to the publication of data on the US labor market. Thus, according to the NFP report, the number of jobs has increased to 292,000 versus an average forecast of 200,000,000. The unemployment rate remained unchanged at 5%. According to the same report, the number of Canadian employees increased to 22,800 compared to the forecasted level of 10,000. As for unemployment, it also remained unchanged at 7.1%. These positive statistics primarily supported US currency. Oil quotations again fell, to their lowest level yet during Friday’s trading, putting more pressure on the Canadian dollar, Today, the dynamics of the pair may be affected by the publication of data on the number of bookmarks of a new foundations in Canada, as well as a quarterly survey of economic conditions and business prospects of the Bank of Canada, which are scheduled for 13:15 (GMT) and 15:30 (GMT) respectively.

Resistance: 1,4190, 1,4293, 1,4418
Support: 1,4107, 1,4055, 1,3988

AUD/USD

AUDUSD (00000002)

The US dollar strengthened against all major currencies after the publication of a strong labor market report on Friday. The NFP index surpassed the most optimistic forecasts of experts. The unemployment rate remained unchanged, but wage growth showed a zero change that disappointed investors. The Australian currency remains under pressure amid worries about the economy of its strategic partner – China. On Saturday there was a Chinese Inflation report presented, which was negative. Indicators fell short of the average forecast of experts. This morning report on the index of the number of vacancies by ANZ in Australia was also presented, which also turned out to be worse than the average forecast. The current dynamics will depend entirely on investor sentiment after the publication of the report by the strong NFP.

Resistance: 0,6981, 0,7024, 0,7095
Support: 0,6927, 0,6879, 0,6814

Stock Market

DAX Futures

DAX (00000002)

On Friday, European Stock Markets dipped. The drop of energy companies shares fully off-set the positive effect of the report on the NFP. In early trading European markets rose slightly against the background of the stabilization of the Chinese market after the adoption of further measures by the Chinese government. However the data on industrial production in Germany, that was published on Friday created some pressure. Thus, according to the presented data, the industrial production in November dropped by 0.3% against expectations of 0.5% growth. Today, the focus of investors’ attention will be on inflation data in China.

Resistance: 9817,39, 9939,91, 10125,05
Support: 9727,54, 9646,66, 9547,90

 

Commodities

GOLD

Gold (00000002)

On Friday, gold prices fell for the first time last week, as a result of the US dollar strengthening after the NFP publication. Thus, according to the data presented, in December 292,000 new jobs were created, while experts predicted growth of only up to 200,000. The unemployment rate, as well as wages, remained unchanged. It should be noted, at the beginning of last week gold grew amid concerns about the health of the Chinese economy. Traditionally, gold it is a safe asset in times of financial and political crises. However, recently gold became more responsive to the American Statistics than political events. Today, the report on inflation in China may call into question the recovery of its economy and will be the main focus of the day

Resistance: 1112,87, 1120,83, 1132,16
Support: 1094,99, 1086,41, 1072,30

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