Lower oil takes shine off the dollar
City Index March 16, 2015 3:07 PM
<p>The dollar rally takes a step back in Asia taking its cue from the oil market as WTI trades at the $44.50 level, which is […]</p>
The dollar rally takes a step back in Asia taking its cue from the oil market as WTI trades at the $44.50 level, which is just above the March 2009 low. The further demise of black gold has been initiated by a report from the IEA on Friday that suggested that the demand in February was met with increased supply from the non OPEC community. The dollar index has moved back below the physiological 100 level after making a fresh high off 100.39 last week with the market citing a weak retail sales report being followed up with a disappointing Michigan confidence index survey on Friday. The industrial production data released today will be closely monitored for signs of a further US slowdown, although the adverse weather in the US is being cited as a large contributing factor.
The Chinese premier gave the Shanghai composite and Hang Seng a boost as he reiterated his support to carry out structural reforms rather than pursue a higher growth number and reduce state control. This was seen as preparing the way for further stimulus measures as he highlighted that the government has more tools available, should a lower growth outcome affect employment.
The CFTC data revealed that AUD shorts increased to their highest level in 5 years, as the world’s largest asset manager Blackrock painted a dismal picture of the state of the Australian economy. It highlighted that nominal growth could be at its lowest level for 50 years and suggested that AUD below 0.7000 by the end of March would not be a surprise.
Supports 1.0435-1.0340-1.0285 | Resistance 1.0665-1.0825-1.0990
Supports 119.50-118.65-116.70 | Resistance 122.45-123.70-124.15
Supports 1.4550-1.4350-1.4250 | Resistance 1.5100-1.5250-1.5345
StoneX Financial Ltd (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.