Daily Market Review — 18/02/2016
China Consumer Price Index and Australia Unemployment Rate will be the main events today
During yesterday’s trading day the Australian currency has strengthened significantly against the US dollar. Despite the publication of positive statistics on the US economy, the Australian Dollar was up against the background of a sharp rise of oil prices after Iran’s oil minister has supported the initiative of the oil-producing countries to freeze the production volumes at January’s level. U.S. producer price index and industrial production in January rose more than the experts forecasted. Nevertheless, the publication of FOMC meeting minutes did not have a significant impact, because there was no new information said. Meanwhile, today statistics on the labor market in Australia were presented. Thus, the unemployment rate rose in January to 6% versus expectations of 5.8%. Also, China consumer price index influenced the market. Thus, inflation rose to a level of 1.8% against the average forecast of experts at the level of 1.9% in annual terms. Further dynamics of pair will depend on U.S. Philadelphia Fed manufacturing index that will be published at 13:30 (GMT).
Resistance: 0.7182, 0.7217, 0.7242
Support: 0.7125, 0.7080, 0.7000
Yesterday the pair showed an upward trend, which was due to the positive US economic statistics. Thus, the producer price index rose both on monthly and on an annualized basis. Industrial production in the US by the end of last month rose after a sharp decline in December 2015. In addition, the recovery in global stock markets reduced the demand for the Swiss franc as a safe asset. Today trade balance in Switzerland 07:00 (GMT) may have an impact on pair’s dynamics. Also, there will be important US labor market data, which traditionally will be presented at 13:30 (GMT). At the same time, U.S. Philadelphia Fed manufacturing index will be published.
Resistance: 0.9989, 1.0068, 1.0125
Support: 0.9861, 0.9789, 0.9692
The main European stock indices closed yesterday’s trading with significant increase, helped by shares’ growth of mining companies, as well as a positive corporate reporting. Meanwhile, support for the stock market provided a sharp rebound in oil prices. Also, U.K. Unemployment Rate that remained unchanged at 5.1% gave support to market. Nevertheless, the volume of construction in the Eurozone in December fell sharply, driven mainly by bad weather conditions. Today, ECB will publish Account of Monetary Policy Meeting at 12:30 (GMT) and it could have an impact on market. Some influence on the stock markets may provide a publication of the US labor market data.
Resistance: 6020.05, 6064.93, 6104.68
Support: 5953.37, 5917.47, 5877.72
At yesterday’s session precious metal quotations rose slightly as the publication of FOMC meeting minutes showed that Fed will be very careful with raise rates. Meanwhile, US economic statistics pointed to a moderate growth of economic activity in all sectors. Thus, industrial production and producer price index increased in January. Building permits also showed moderate growth. At the same time, the US housing starts fell slightly in January, which was due to bad weather conditions. Today’s trading dynamics will depend on the publication of US labor market data at 13:30 (GMT). Also, investors will keep a wary eye on the situation in the stock markets, and will buy gold as a safe asset in the case of negative dynamics.
Resistance: 1214.19, 1231.89, 1262.75
Support: 1190.16, 1174.23, 1145.39