Global Markets:

  • Asia stock markets: Nikkei up 0.25 %, Shanghai Composite gained 0.50 %, Hang Seng and ASX both rallied 0.90 %
  • Commodities: Gold at $1317, Silver at $21, Crude Oil at $106.74
  • Bonds: US 10 year yield at 2.55

 

FX Update:

  • AUD – AUD/USD is trading again above 0.94 after the 0.9350 support level held. Dealers note that the Aussie remained very resilient despite good selling from real money funds and corporate names. Another push towards the 0.9450 barrier seems likely in the near-term. Plenty of stops above that level and little resistance then until 0.95. To the downside, 0.9320 is the key support level to keep an eye on. Overnight, leveraged names were sellers of AUD/NZD, which put the Aussie slightly under pressure.
  • CAD – The rally to 1.0750 attracted solid selling interest from the leveraged community and the pair quickly fell back to 1.0720. Corporate bids were filled on the way down to 1.0715. More bids noted ahead of the 1.07 barrier option and sell stops are resting just beneath. Should we see a breakout, the next key tech support lies at 1.0660, which is the 38.2 % Fibo level of the entire 2012-2014 rally.
  • CHF – In USD/CHF, bids noted ahead of 0.89 as well as sell stops from momentum funds should we see a break beneath the big figure. EUR/CHF caught in the same range as the past few days; 1.2150 and 1.2180 key short-term levels.
  • EUR – EUR/USD touched 1.3650 briefly yesterday, retraced and then spent most of the Asian trading session consolidating between 1.3625 and 1.3635. Flows were light; stops got triggered above 1.3640, but the large one’s remain through 1.3660. Dealers report a mixed order book to the topside with a mix of stops and offers from 1.3680 to 1.3720. EUR/GBP extended its gains to 0.8032, but will run into good selling interest towards 0.8050.
  • GBP – GBP/USD wasn’t able to sustain momentum above 1.70 after the US GDP data and fell back to 1.6980 where it spent most of the Asian session. While key price support at 1.6920 is holding, the immediate risk lies on the upside. A break above 1.7020 will pave the way for another test of 1.7061 and eventually, of the 1.71 barrier.
  • JPY – USD/JPY fell to a low of 101.62 after US GDP figures were released. Specs are still keen buyers on any dip (a 20 pips move in the USD/JPY can be considered large nowadays) and demand from local importers should keep the pair supported as we are heading towards the end of the month. Key tech levels: 10 DMA (101.95), 21 DMA (102.11), 100DMA (102.22), 200 DMA (101.60), Daily Ichi Cloud (101.75-102.47).
  • NZD – Kiwi was the outperformer overnight and is just a few pips away from reaching the current yearly high at 0.8780. While we could see a fresh setback from here, a direction extension through should see a test of the trendline resistance from January 2014 and the 2011 high at 0.8838/45.

 

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