Daily Market Review — 12/08/2015
Investors Will Be Focused Today On the ILO Unemployment Rate
The dynamics of yesterday’s trading was influenced by the decision of the People’s Bank of China to decrease the rate of the national currency, which pushed the US dollar to rise. Later, it became known that Greece and international lenders have found a compromise solution for the third bailout program. As of today, the pair began trading with a negative dynamics, which was supported by reports that the People’s Bank of China today devalued the national currency by another 1.6%, which caused a rise in the dollar against the British currency. Also, it is worth noting that today, market participants will be watching the UK labor market statistics. The ILO Unemployment Rate, Average Earnings and Claimant count will be published today at 08:30 (GMT) and may cause significant fluctuations in the pair.
Resistance: 1.5588, 1.5615, 1.5650
Support: 1.5533, 1.5489, 1.5466
Yesterday’s trading session began with the collapse of the Australian dollar against its US counterpart amid the decision of the Chinese central bank to devalue the national currency, which led to an increase in the US dollar against all Asian currencies. Today’s trading session started with negative news for the Australian currency. Chinese regulators once again devalued the national currency by another 1.6%. This gave rise to the sale of the Asian currencies, which include the Australian dollar. Although the Westpac Consumer Confidence turned out to be better than expected, which showed that the level of confidence increased in August to 7.8% against an average forecast of -3.2%, the pair fell to the 0.7214. Today, the dynamics of the pair can be affected by a speech of the FOMC Member Dudley, scheduled for 12:30 (GMT).
Resistance: 0.7324, 0.7351, 0.7418
Support: 0.7215, 0.7190, 0.7165
Yesterday’s trading session, the major stock indexes in Europe were in a downward trend, caused by the fall in the shares of mining companies and automakers. This decline was triggered by the decision of the People’s Bank of China to devalue the national currency by 1.9%. Last time the Chinese regulator used such measures in 1994. According to reports received this morning, the national bank of China devalued the yuan by another 1.6%. Therefore, the start of trading in the European stock exchanges is expected to be negative.
Resistance: 6668.78, 6695.17, 6716.32
Support: 6607.21, 6585.32, 6539.78
During yesterday’s trading session, gold prices rose to a new 3-week high amid an agreement between international lenders and Greece, which put pressure on the dollar. Also, the dynamics of the price was affected by the People’s Bank of China decision to devaluate the national currency by 1.9% yesterday and 1.6% this morning. Recall that China is the world’s largest consumer of gold and exporter of gold and its products. Such a move points out that the Chinese economy may be in trouble, so many investors put their money in safe-haven assets, namely gold.
Resistance: 1113.07, 1119.00, 1130.86
Support: 1101.34, 1093.50, 1089.31