Market Comment |
Australia |
| The S&P/ASX 200 index jumped 2.1% or 103.2pts to 5021.63 (day range: 5022 – 4918.4) on Wednesday. The index is below its 20d MA (@ 5073) and below its 50d MA (@ 5276). 47% of the index constituents are above their 20D MA (vs 30% the previous session) and 30% of the shares are above their 50D MA (vs 26%).
Australia’s credit to business, consumers rose 6.3% YoY in August vs +6.1% in July, according to the Reserve Bank of Australia. Australia’s building approvals rose 5.1% YoY in August vs +17.9% in July, according to the Australian Bureau of Statistics. |
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| The US dollar was mixed against its major counterparts on Wednesday, under pressure against the CAD, AUD and NZD. On the economic data front, MBA mortgage applications fell 6.7% last week from an increase of 13.9% the week before. ADP payrolls increased 200K in Sept from 190K in August, above the 190K estimate. The Chicago business index came in at 48.7 in Sept from 54.4 in Aug.
The Euro was under pressure against all its major pairs. In Europe, euro zone consumer prices were down 0.1% YoY in September after being up 0.1% a month earlier. Economists anticipated prices to be flat. Separately, euro zone unemployment rate was flat at 11% in August. It was revised from 10.9% German retail sales fell 0.4% in August after increasing by 1.6% in July. Consensus expected a 0.2% rise. Separately, Germany unemployment rate was flat at 6.4% in September, as anticipated. UK GDP growth in 2Q was confirmed at +0.7%. It was +0.4% in 1Q. The Australian dollar was higher against most of its major pairs with the exception of the NZD. |
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Medium Term Strategy: Forex Pair of the day
GBP/JPY – under pressure
Intraday Technical Strategy
AUD/USD Intraday: the bias remains bullish.
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