RBA a small highlight in summer ranges
City Index August 21, 2012 1:00 PM
<p>EUR/USD Range: 1.2342-1.2379 Support: 1.2280 Resistance: 1.2380 The euro’s gains in Asia were reversed yesterday after the ECB called the report over the weekend in […]</p>
The euro’s gains in Asia were reversed yesterday after the ECB called the report over the weekend in the Der Spiegel that the ECB had a plan to cap EZ bond yields ‘misleading’ yet despite the comments the single currency failed to break the 1.2280 level and we find ourselves this morning trading towards the top end of the recent range at 1.2380. Despite the dismal range trading seen over the month the single currency seems to be quite resilient despite the lack of action from the ECB and the SNB flow and I expect an eventual break of 1.2500.
Range: 1.5606 – 1.5738
Sterling continues to trade in a 1.5650-1.5750 range with slight emphasis to the upside after the 200-day moving was broken last week. Today, second tier data releases in the form of the PSNB data at 9.30am and the CBI’s outlook at 11am.
The RBA released their minutes from the August meeting which revealed concerns for the global economy stemming from Europe but that the Chinese economy is ‘stabilising at a more sustainable pace’. The members also noted that the domestic economy was ‘around trend pace’. The AUD is trading higher this morning and although I think the minutes from the RBA are in line with what the market was expecting I do note that there was no discussion at the meeting around the high level of the lifestyle currency.
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.