Retail sales unaffected by the weather

<p>US retail sales, along with comments from Fed members, have reversed the negative dollar theme seen since the NFPs release on Friday. This has given […]</p>

US retail sales, along with comments from Fed members, have reversed the negative dollar theme seen since the NFPs release on Friday. This has given risk trade a boost, with market positions significantly reduced. It seems that retail therapy isn’t weather affected as US core sales numbers came in at 0.2% versus the 0.1% expected as the ex-auto reading beat the consensus by 0.3% to achieve a month-on-month number of 0.7%.

Federal Reserve voters Plosser and Fisher stuck to their usual hawkish tones, with the former telling the markets ‘don’t read too much into December payroll numbers.’ The dollar index has shown signs of stabilisation, with the 80.50 level now seen as strong technical support.

The World Bank added to the risk friendly environment as it raised its global 2014 GDP forecast to 3.2% from 3%, sighting the strength of the recovery in developing economies but the outlook for China has driven the AUD lower following a cut in their estimate to 7.7% from 8% along with data that showed that Chinese financial institutions issued CNY 482.5 billion of new news loans in December from CNY 624.6 billion in December.

The data highlight today will the Beige book from the US this evening with PPI data and the Empire State manufacturing survey likely to give us a small distraction.



Supports 1.3620-1.3600-1.3550 | Resistance 1.3690-1.3725-1.3750


Supports 103.50-102.90-102.50  | Resistance 104.50-104.90-105.50



Supports 1.6370-1.6330-1.6300  | Resistance 1.6465-1.6500-1.6525

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