Daily Market Review — 31/08/2015

Daily Market Review — 31/08/2015

Market Participants Will Be Focused On CPI in the Eurozone

Forex

EUR/USD

EURUSD

In the first half of the trading session on Friday the pair demonstrated a positive trend, which was caused by the publication of positive statistics on the consumer price index in Germany. According to the data, the prices in the current month have not changed compared to the previous. Analysts had expected a drop of 0.1%. In annual terms, prices rose by 0.2%, which met the predicted values. Today a number of economic statistics will be published in the Eurozone. German retail sales will be released at in 06:00 (GMT). Much more interesting report on the consumer price index in the Eurozone will be published at 09:00 (GMT). Investors will closely monitor this data to understand how effective is quantitative easing program, launched by the European Central Bank in March this year.

Resistance: 1.1310, 1.1396, 1.1560

Support: 1.1156, 1.1080, 1.1018

 

AUD/USD

AUDUSD

Last Friday, the pair showed a negative trend against the background of positive statistics from the US personal income and spending, as well as the basic price index for personal consumption expenditures. The opening of the new trading week was also marked by the pair’s fall. Such dynamics were caused by the publication of data on inflation expectations in Australia, which fell this month to a level of 0.1% versus an expected value of 0.2%. Also, new home sales fell last month by 0.4%, lower than the predicted value at +0.5%. It should be noted that the US currency was supported by the Fed members comments, made at the annual Jackson Hole Symposium. The Vice Chairman Stanley Fischer noted that the FOMC aiming to tighten monetary policy, but the outcome of the September meeting is not yet obvious. James Bullard in his speech expressed the hope that the prospects for the US economy are positive enough to raise rates. Today, the dynamics of the pair will be influenced by the publication of the Chicago Purchasing Managers’ Index at 13:45 (GMT).

Resistance: 0.7172, 0.7214, 0.7249

Support: 0.7119, 0.7094, 0.7049

 

Stock Market

DOW Futures

Dow

Most of last week the main US stock markets recovered losses suffered during “Black Monday”. Friday was not an exception. This was caused by US economic data, which showed an improvement in industrial orders, GDP growth in the second quarter, as well as in personal income and spending. The new trading week of US stock markets opened with the fall against the background of negative dynamics in the major Asian stock markets. Today, the dynamics of the indices will be mostly affected by the data from the Chinese economy as well as the situation in the Asian stock markets.

Resistance: 16680.83, 17074.08, 17531.68

Support: 16432.47, 16208.92, 15545.88

 

Commodities

Light Sweet Crude Oil

CrudeOil

Last Friday quotes for “black gold” increased substantially; this was triggered by the continued closure of speculative short positions on the asset. Against this backdrop, prices have risen to the level of $45 per barrel. However, a new trading week began with the fall of quotations, due to the fall in Asian stock markets. Some influence also has the report of the oil services company Hughes, which pointed out that the number of active rigs in the US increased last week by 2 units. It is also worth noting, that the oversupply in the world market is putting pressure on oil prices.

Resistance: 45.17, 45.83, 46.30

Support: 44.27, 43.43, 42.33