The Australian Dollar traded in a tight range 0.7194-0.7259 as global markets are in gridlock with no catalyst to provide direction. The main mover was in AUD/JPY falling 1% to below 79 as JPY strengthen. Soft Japanese data and G7 meeting commentaries undermined risk appetite, driving flows into Japanese Yen…. read more
Daily
The following is a summary of the previous day’s foreign exchange market movements in the major currencies and the commodities markets. It is meant as an informative guide to the reasons underlying currency and commodity movements seen in the previous day’s foreign exchange trading. Together with a market snapshot at close of the New York session, indicators/events released during the session are outlined compared with their expected level of influence before release. This fundamental analysis summary also highlights upcoming data/events which may influence currency movements upon their release.
You will also find a technical analysis snapshot at time of release, highlighting support and resistances of each of the major currencies and gold. Coupled together with the reasons behind these important levels, traders can expect some support or resistance when these levels are reached.
Bullet Report
May 23, 2016This week does not include many important news announcements from the US, however the calendar is full of FOMC member speeches in which the market will pay special focus on any comments about when to expect the next rate hike. The market will also be driven by Brexit poll developments… read more
Daily Outlook
May 23, 2016The Australian Dollar is consolidating between 0.7200-0.7250 with the market weighing the divergence between the RBA and US Fed’s next move in monetary policy. The market is pricing in 13% chance of RBA’s cut on 7th June and 33% chance of rate hike by US Fed on 15th June. Fed… read more
Bullet Report
May 19, 2016Two FED members are set to speak today and following the surprisingly hawkish comments released yesterday, the market will monitor their words very carefully. Yesterday USD jumped after FOMC minutes were released. The minutes raised hopes for a June rate hike. Policymakers generally judged that it might be justified to… read more
Daily Outlook
May 19, 2016FOMC minutes released last night caught the market off-guard as commentary from the Fed increases the likelihood of a hike in June. Minutes from the April FOMC meeting made clear the potential for a June rate hike given a continued improvement in economic growth, labor market conditions and inflation. Since… read more
Bullet Report
May 18, 2016Today’s main focus will be the FOMC meeting minutes for April. The minutes are most likely to reveal that the FED members are divided over the need for a rate hike and give some indication on the probability of a US rate hike in June or July. Besides this, crude… read more
Daily Outlook
May 18, 2016US inflation beat expectations as deflationary pressures from low energy and food prices continue their reversal. Despite monthly CPI beating forecasts by 0.1%, the market remains unconvinced as to the possibility of a rate hike in June. Hawkish commentary in response to the data from FOMC members Williams and Lockhart… read more
Daily Outlook
May 17, 2016Crude oil rallied to its highest level in 6 months as supply factors in Nigeria, Libya, and Venezuela shake the market while fires in Alberta continue to rage. Crude prices have faced considerable strength over the last two weeks as Nigeria oil output hits its lowest level in decades… read more
Bullet Report
May 16, 2016Today’s calendar is very light with only US PMI standing out this afternoon, which is expected to decline to 7 from 9.6 in April. Over the weekend, Chinese data came out weaker than expected however reactions were not very negative. The new string of bad data reveals though that China’s… read more
Daily Outlook
May 16, 2016Stronger than expected US data struggled to convince the market on Federal Reserve tightening in June. Despite retail sales recording a rise of 1.3% (versus -0.3% in March) market expectations for a rate hike in June are sitting around 4%. Equity markets were less pessimistic on the potential for future… read more
