EU CPI estimate due to set the tone

<p>The Asian session was active again last night with lots of data releases in Japan, Australia, New Zealand and China.  Main reactions have been for […]</p>

The Asian session was active again last night with lots of data releases in Japan, Australia, New Zealand and China.  Main reactions have been for the AUD and NZD after having big falls yesterday mainly due to the intervention from the RBNZ. They have gained around 50 points back based on decent China factory activity staying in the expansion territory above the 50 level.

The JPY gained some more since yesterday’s move, with USD/JPY now trading 109.30 after industrial production was a disappointment to the economy.  We are still yet to break the 110.00, which we will likely see if we can break recent highs of 109.74.

Tonight there is more important data due out from Asian countries, mainly the Chinese manufacturing PMI expected at no change at 51.1, and Aussie retail sales expected to have no change at 0.4%.

The euro has been subdued of late in a range of 1.2662 – 1.2716, I would look for a break of these to see a direction forming again.  Data out today could have the effect it needs to do that, with German unemployment due out as -2k from 2k previous and EU CPI flash estimate y/y due out as 0.3% from 0.4%, looking to put more pressure on the ECB and its actions it will take with the upcoming ECB meeting.

The pound has started strong today with an early push up to 1.6270, even with disappointments in consumer confidence and nationwide housing prices both down.  The bigger data releases are yet to come at 9:30am today with the current account at an expected better rate of -16.9b from -18.5b, and GDP q/q set to be the same as last at 0.8%.

Other important data due out is from Canada with the GDP m/m data expected at 0.2% down from 0.3% previous.  The US Consumer confidence expected at 92.2 from 92.4.

 

EUR/USD

Supports 1.660-1.2625-1.2500  | Resistance 1.2716-1.2773-1.2842

 

USD/JPY

Supports 109.19-108.44-108.24   Resistance 109.74-109.95

 



GBP/USD

Supports 1.6220-1.6160-1.6055  Resistance 1.6273-1.6341-1.6415

 

 

Join our live webinars for the latest analysis and trading ideas. Register now

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.

For further details see our full non-independent research disclaimer and quarterly summary.