Tuesday 18th August: European Open Briefing

IC Markets No Comments

Global Markets:

  • Asian stock markets: Nikkei and Hang Seng both down 0.15 %, Shanghai Composite lost 1.50 %, ASX declined 0.40 %
  • Commodities: Gold at $1118.40 (unch), Silver at $15.28 (-0.15 %), WTI Oil at $42.30 (-0.20 %), Brent Oil at $48.60 (-0.10 %)
  • Rates: US 10 year yield at 2.16, UK 10 year yield at 1.82, German 10 year yiled at 0.63

News & Data:

  • RBA Minutes: Economic & Financial Conditions To Inform Policy Stance
  • RBA: Domestic Economy Has Been More Positive In Recent Months
  • RBA: Further A$ Depreciation To Impart Economic Stimulus
  • RBA: Accommodative Monetary Policy Remained Appropriate
  • RBA: Non-Mining Investment To Stay Subdued For Some Time
  • RBA: Inflation Seen Consistent With Target In Forecast Period
  • RBA: Sizeable Market Impact Likely When Fed Raises Rates
  • RBA: Downside Risks To China Outlook Have Receded Somewhat
  • Australia New Vehicle Sales -1.3 % (3.9 % prev)
  • China House Prices -3.7 % (-4.9 % prev)

Markets Update:

The RBA released their latest meeting minutes overnight, but there were no surprises. They mentioned that a further depreciation of the Aussie Dollar would support economic stimulus and that accommodative monetary policy remains appropriate for now, in line with previous comments. AUD/USD rose from 0.7365 to 0.7385 after the minutes, but quickly gave up the gains. The pair is now heading towards 0.7350 as we are approaching the European open.

The US Dollar is bid across the board this morning. EUR/USD just broke sub-1.1050; there are reports of sizeable stops through 1.1025, which may attract price. Support is seen at 1.1015 and then 1.0960, while resistance lies now at 1.1120. GBP/USD is following the Euro lower and currently testing 1.5570 support. A break below would pave the way for a 1.5530 test. The pair also posted a bearish engulfing pattern on the Daily chart at yesterday’s close. If you are trading the Pound, keep in mind that we will get UK inflation data at 09:30 BST.

Upcoming Events:

  • 09:30 BST – UK CPI
  • 13:30 BST – US Building Permits
  • 13:30 BST – US Housing Starts
  • 13:55 BST – US Redbook

Published by

IC Markets

IC Markets is revolutionizing on-line forex trading; on-line traders are now able to gain access to pricing and liquidity previously only available to investment banks and high net worth individuals.