Daily Market Review — 09/09/2015
Interest Rates Decisions in Canada and New Zealand Will Be In Focus Today
During yesterday’s trading session the pair traded mostly with a negative trend. The Canadian dollar strengthened against its US counterpart amid rising oil prices. Recall that the Canadian dollar is the commodity currency, so its rate is very dependent on the dynamics of oil prices. Its price rose in yesterday’s trading due to reports that the Chinese government introduced additional measures to support the domestic stock market. The current dynamics of the pair will depend entirely on incoming data on the economy of Canada. For example, at 12:15 (GMT) the number of housing starts will be released in Canada. And the number of building permits will be published 15 minutes later. The most important event of the day for the Canadian currency will certainly be a decision on the basic interest rate at 14:00 (GMT), and BOC Rate Statement.
Resistance: 1.3243, 1.3288, 1.3323
Support: 1.3165, 1.3115, 1.3058
The pair has been demonstrating strong growth for the second day in a row, which is caused by the absence of important economic statistics from New Zealand and the United States. Today’s positive trend is caused mainly by positive news from China, where all stock markets are showing strong growth. Yesterday the Chinese regulator introduced new restrictions on trading in the stock markets in order to protect the domestic securities market of another sell-off. As a result, in case of a fall of the main stock index by 5%, trading will be halted for 30 minutes. In the case of the fall of the index by 7% or more, trading will be stopped till the end of the day. These messages will certainly support the New Zealand currency, as it’s the country’s biggest trading partner of China.
Resistance: 0.6415, 0.6465, 0.6510
Support: 0.6311, 0.6243, 0.6180
During yesterday’s trading session the major stock indices showed strong growth. This was caused by positive statistics from the Eurozone. According to yesterday released data GDP in the Eurozone in the second assessment exceeded analysts’ forecasts. Also, the German trade balance was presented yesterday, which also exceeded analysts’ expectations. In addition, stock markets rose on reports on the improvement of the situation on the stock markets in China, where the government is introducing new restrictive measures to support the domestic economy. At the same time, investors turned their eyes to the Goldman Sachs statement that the Chinese government has spent 1.5 trillion yuan ($ 236 billion) to support the stock market since the downturn that began three months ago. At the end of yesterday’s trading session the British FTSE showed an increase by 1.18%
Resistance: 6250.80, 6346.73, 6482.75
Support: 6005.00, 5935.66, 5756.04
Throughout yesterday’s session quotations of precious metal did not change. Short-term prices reached the level of $1126.00 per ounce, but then rolled back down again. Friday’s data on US labor market has not made it clear what is the timing of the first increase of interest rates by the US Federal Reserve. Gold got some support from a general decline of the American currency. According to most analysts, the volume of trading will be limited up to the Fed meeting, which is scheduled for September 16-17. Recall the gold begins to fall in price at a time when rates rise, because it cannot compete with higher-yielding assets.
Resistance: 1130.10, 1136.01, 1142.29
Support: 1117.62, 1109.56, 1105.67