AUD taking centre stage ahead of US jobs data
City Index October 3, 2012 2:10 PM
<p>FX markets are fixated on the AUD this morning following the break of the 100-day moving average overnight at 1.0240 with the market now eyeing […]</p>
FX markets are fixated on the AUD this morning following the break of the 100-day moving average overnight at 1.0240 with the market now eyeing the September 6th low of 1.0165. The catalyst behind the overnight move comes from the weaker services PMI data from China at 53.7 (the lowest reading since November 2010), the Australian trade deficit falling to AUD 2.03 billion versus an expected number of AUD 685 million with rating agency Moody’s putting the final boot in by downgrading the state of Tasmania.
Spanish yields continued to ease yesterday so it wasn’t really a surprise that after the European close Spanish PM Rajoy said that Spain are not yet ready to ask for aid. The market view seems to be that this request will come just before the EU meeting.
Today’s data will be a preview to the NFP’s on Friday with the release of the ADP report at 1.15pm with the ISM non-manufacturing data released at 3pm.
Supports 1.2870-1.2825-1.2800 | Resistance 1.2965-1.3000-1.3045
Supports 78.00-77.75-77.40 | Resistance 78.35-78.55-78.80
Supports 1.6085-1.6005-1.5990 | Resistance 1.6135-1.6185-1.6200
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.