Daily Market Review — 19/08/2015
Market Participants Will Be Focused On the Publication of the US CPI and FOMC Meeting Minutes
During the first half of yesterday’s trading session the pair showed a negative trend, which was caused by another fall of the Chinese stock market. Recall that market participants prefer to buy the Japanese currency in times of instability, as a safe-haven asset. In the afternoon, the pair turned to growth, supported by relatively positive statistics from the US. According to data released yesterday, the housing starts in the US rose to a level of 1.206 million against analysts ‘expectations at 1.19 million. But the number of building permits rose to a level of 1.119 million, slightly below analysts’ expectations at the level of 1.232 million. Today markets focused on the upcoming publication of important statistics on inflation in the United States at 12:30 (GMT). Investors also wait for the release of the FOMC meeting minutes at 18:00 (GMT).
Resistance: 124.42, 124.58, 124.78
Support: 124.21, 124.04, 123.78
The yesterday’s dynamics of the pair was affected mainly by the US economic statistics as economic news from New Zealand was published late in the evening. The index of housing starts in the US rose to the highest level in eight years. But building permits fell short with the average forecast of analysts. As to statistics from New Zealand, the output and input PPI’s were published yesterday at 22:45 (GMT). According to the data manufacturers reduced their prices by 0.2% in the second quarter against the forecasted at –0.9%. Input PPI fell by 0.3% against expectations at the level of –1.1%. This relatively positive statistics provided some support for the New Zealand currency. Today, market participants will pay special attention to the publication of the inflation report in the United States, scheduled for 12:30 (GMT), as well as the publication of the FOMC meeting minutes at 18:00 (GMT).
Resistance: 0.6601, 0.6631, 0.6648
Support: 0.6573, 0.6556, 0.6527
Yesterday’s negative dynamics of the US major stock markets was caused by another fall of the Chinese stock market. At the end of yesterday’s trading session, the main stock index of China fell by 6.2%, which put pressure on all the world’s stock markets. As a result, commodities experienced a negative trend as well. In addition, the world’s largest retailer Wal-Mart presented yesterday its quarterly report, which was quite negative, which put pressure on US stock indexes.
Resistance: 4551.88, 4573.13, 4584.38
Support: 4528.10, 4502.41, 4484.97
Light Sweet Crude Oil
Yesterday the crude oil was traded with negative dynamics. Investors were closing their short positions on oil as quotations lost about 60% from its maximum values in 2014. Moreover, market participants already accepted the slowdown of the Chinese economy, the second largest consumer of raw materials in the world. Some investors prefer to buy oil at lower prices, and now the best time for this. Also, yesterday was published statistics on the US crude oil inventories by API, which showed that they fell by 2.3 million barrels last week compared to the average forecast of –0.85 million. This provided some support to oil prices. In general the outlook for oil remains negative, at least until the end of this year. Today market participants will monitor the statistics on crude oil inventories from the US Department of Energy, which will be published at 14:30 (GMT).
Resistance: 42.51, 42.87, 43.68
Support: 41.59, 41.34, 41.00