Daily Market Review — 24/02/2016
US Economic Statistics Will Be in the Focus of Market Participants today
At yesterday’s session the Australian dollar fell somewhat against the US dollar. This trend was due to a general strengthening of the US currency. Meanwhile, yesterday US Economic Statistics were mixed. Thus, according to the presented data, U.S. Existing Home Sales at an annual rate amounted to 5.47 million against an average forecast of 5.32 million. However, the CB Consumer Confidence in February fell to 92.2 against expectations of analysts at 97. This morning there were presented data on Australia wage price index, and index was slightly below the average forecast of experts. Further dynamics of pair will depend on the situation on the commodity markets. Some influence can provide the publication of U.S. services PMI by Markit at 14:45 (GMT). Moreover, in 15:00 (GMT) index of new home sales in the US will be published.
Resistance: 0.7217, 0.7242, 0.7278
Support: 0.7165, 0.7125, 0.7080
Despite the significant drop in oil prices, the Russian currency shows surprising stability against the US dollar. This trend is due to the period of tax payments, which usually gives some support to the ruble. Nevertheless, the Russian currency exchange rate directly depends on the price of oil, which again negative due to global oversupply. In view of the negative fundamental factors, the Russian currency, most likely, in the near future will be under pressure. And the pair will show the January’s highs − 84 rubles per US dollar, once again
Resistance: 74.9046, 75.9297, 76.8720
Support: 73.8824, 73.0947, 71.6984
Major stock indexes in Europe closed second consecutive session in the red zone. Such a drop in stock markets was due to weak corporate reporting, falling shares of mining companies, as well as the negative dynamics of oil prices. In addition, data from the German institute IFO, according to which the current economic situation is regarded by most investors as a negative, also put some pressure. Meanwhile, Brexit question is still of current interest. In yesterday’s speech, the head of the Bank of England said that the regulator has not yet formulated an opinion about the consequences of leaving the political bloc for the economy and for the course of the British currency in particular. Further dynamics of stock markets will depend entirely on investor sentiment.
Resistance: 5993.69, 6034.38, 6064.30
Support: 5877.72, 5831.56, 5773.48
Precious metal quotes yesterday rose by 1%, which was due to demand for safe assets, and influx of funds to backed by gold funds. This trend was caused by the fall of stock markets around the world and the negative trend in oil prices. Gold has recently greatly increased in price on speculation that the US Federal Reserve would not rush to another rise in interest rates against the background of financial instability in the world. Meanwhile, support for gold yesterday provided a weak statistics on the US economy. In the near future the gold, according to most analysts, may be under some pressure on the background of profit-taking after a significant increase during the year. Today, the dynamics of trade can be affected by the publication of U.S. services PMI by Markit at 14:45 (GMT) and the U.S. new home sales, the data will be published at 15:00 (GMT).
Resistance: 1231.81, 1246.47, 1262.76
Support: 1200.63, 1185.74, 1172.24