Daily Market Review — 30/11/2015
Release of German Consumer Price Index Is the Main Event of the Day
The pair showed a negative trend on Friday, which was caused by the widespread strengthening of the US currency. In addition, the pressure on the European single currency comes from the expectation of an extension of stimulus measures by the ECB at the next meeting, scheduled for 3rd of December. Meanwhile, on Friday statistics were presented on the Eurozone Economy. According to the data, the Economic Sentiment Index, Business Climate Indicator, Industrial Confidence and Consumer Confidence were mixed. Today, the focus of market participants will be on data on Retail Sales in Germany, scheduled for 07:00 (GMT), and on CPI at 13:00 (GMT). As to data from the US, Investors should pay attention to the Chicago Purchasing Managers’ Index at 14:45 (GMT). However, the reaction to US data will be limited, as the markets expect Friday’s report on the NFP.
Resistance: 1.0632, 1.0676, 1.0762
Support: 1.0566, 1.0461, 1.0400
During Friday’s trading the Australian Dollar depreciated significantly against its US counterpart. The US Dollar continues to rally on expectations that the Fed will raise rates at the next meeting, which will take place on December 15th –16th. Meanwhile, the pressure on the Australian currency comes from the decline in commodity prices, including Oil. Today’s opening was marked by the fall of the pair on a background of disappointing inflation report in Australia. Thereafter, the pair managed to win back almost all lost positions against the publication of data on Private Sector Credit in Australia. Today’s dynamics of the AUD/USD may be affected by the publication of data on the Chicago Purchasing Managers’ Index at 14:45 (GMT). It should be noted that market participants will not open large positions ahead of Friday’s report on the NFP.
Resistance: 0.7213, 0.7249, 0.7282
Support: 0.7169, 0.7130, 0.7084
At the beginning of Friday’s trading, the major Stock Exchanges in Europe showed a sharp drop against the background of China’s statistics on the profits of large industrial enterprises. Thus, according to the published data, this index showed a significant decline again, pointing to the ongoing problems in the Chinese Economy. Nevertheless, the negative impact of this data was stopped by Economic statistics from the Eurozone, where the Economic Sentiment Index has risen to the level of 106.1 against the average forecast of 105.9. Meanwhile, Investors widely expect expansion incentives from the ECB, which will support the Stock Market. Today’s dynamics of trading can be influenced by the report on Retail Sales and inflation in Germany, scheduled for 07:00 (GMT) and 13:00 (GMT), respectively.
Resistance: 11366.41, 11474.24, 11643.50
Support: 11183.64, 11053.92, 10864.65