Market Comment |
Australia |
| The S&P/ASX 200 index increased 1.8% or 90.512pts to 5112.14 (day range: 5116.7 – 5021.7) on Thursday. The index is above its 20d MA (@ 5078) and below its 50d MA (@ 5267). 60% of the index constituents are above their 20D MA (vs 47% the previous session) and 38% of the shares are above their 50D MA (vs 30%).
The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI) gained 0.4 points MoM to 52.1 in September. Key findings included: “Four of the eight manufacturing sub-sectors expanded: food, beverages & tobacco (down 0.7 points to 53.5); wood & paper products (down 0.4 points to 69.6); textiles, clothing, footwear, furniture & other manufacturing (up 1.1 points to 56.3); and petroleum, coal, chemical & rubber products (up 8.9 points to 57.2). (…) The machinery and equipment (up 1.5 points to 42.8), metal products (up 3.4 points to 46.7), and very small printing & recorded media (down 2.1 points to 47.4) sub-sectors all remained in contraction, as did the non-metallic mineral products sub-sector, despite improving towards stability (up 7.1 points to 49.0).” Australia’s commodity index dropped 21.3% YoY in September vs -21.4% in August, according to the Reserve Bank of Australia. |
Foreign Exchange |
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| The US dollar was under pressure against its major counterparts on Thursday except for the CHF. On the economic data front, US Initial Jobless Claims were at 277K for the week ending Sept 25 compared to 267K the week before.(271K estimate). Continuing Claims lowered to 2191K for the week ending Sept 18 from a revised 2244K the week before (below the 2230K estimate). MARKIT US Manufacturing PMI was 53.1 in Sept from 53 in Aug. Construction Spending for Aug increased 0.7% from a revised 0.4% in July, above the 0.5% estimate. Finally, ISM Manufacturing PMI SA was at 50.2 for Sept from 51.1 in Aug, below the 50.6 estimate.
The Euro was Mixed against all its major pairs. In Europe, euro zone PMI manufacturing index was 52 in September in final estimation, as in first one, vs 52.3 the month before. UK PMI manufacturing index was down to 51.5 in September from 51.6 in August (revised from 51.5). Consensus expected 51.3. The Australian dollar was higher against most of its major pairs with the exception of the CAD. |
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Medium Term Strategy: Forex Pair of the day
GBP/USD – rebound expected
Intraday Technical Strategy
AUD/USD Intraday: turning down.
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