International Trading

USD Extends Gains after Equities Weaken

Tuesday, September 28, 2010 , Posted by Usman Ali Minhas at 12:39 AM

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Market Brief

Markets were trading in the red this morning, following a weaker close to US equity markets with the Dow closing -0.44% lower. Perhaps the impact was magnified during this Asian session this morning as the Dollar strengthened even further, bolstered by reports that the Fed’s QE measures could be less aggressive then many are anticipating. The Nikkei 225 sold off and was trading -1.14% at the time of writing, and the currency majors were trading flat with a slight negative bias favouring USD.
The USDJPY extended its weakness into a seventh straight day, trading just off the days low. Data released from yesterday showed Japanese exports during August increased less than expected at 15.8%, which marked a sixth consecutive of slower export growth. The number highlights the negative impact the Yen's appreciation over the same time period is having on the economy, and certainly throws more weight behind the BoJ's recent intervention policy. Perhaps the best performer (once again) has been the AUDUSD which hit a new two year high in trading yesterday at 0.9645. The AUD has been prospering against the US Dollar as speculation that the RBA will be raising rates during their meeting on October 5 and general USD weakness coming in from the Fed increasing QE has seen the AUDUSD be one of the best performers of the past quarter.
Looking ahead, we await the release of the Q2 GDP reading from the UK, followed by the Case-Shiller home price index & consumer confidence reading from the US.
Snap Shot
Global IndexesCurrent Level% Change
Nikkei 225 Index9493.72-1.14
Hang Seng Index22314.14-0.12
Shanghai Index2618.38-0.36
S&P future11390.11
DJIA futures107610.1
FTSE futures5555-0.39
DAX futures6285.5-0.25
World MarketsCurrent Level% Change
Crude wti76.12-0.52
Gold1292.7-0.13
Silver21.33-0.42
USD Index79.450.01
VIX22.543.82
Todays CalenderEstimatesPreviousCountry / GMT
German GfK Consumer Confidence Survey4.24.1EUR / 0600
Q2 Current Account (Pounds)-8.2B-9.6BGBP / 0830
Q2 Total Business Investment (QoQ/YoY)-0.842105263-0.842105263GBP / 0830
Q2 UK Gross Domestic Product (QoQ/YoY)1.2%/1.7%1.2%/1.7%GBP / 0830
CBI Reported Sales2535GBP / 0830
S&P/Case-Shiller 20 City (MoM/YoY)-0.0322580650.28%/4.23USD / 1300
Consumer Confidence52.153.5USD / 1400
Richmond Fed Manufacturing Index511USD / 1400
ABC Consumer ConfidenceUSD / 2100

Currency Tech

EURUSD 
R 2: 1.3667 
R 1: 1.3507 
CURRENT: 1.3449 
S 1: 1.3366
S 2: 1.3243
USDJPY 
R 2: 84.88 
R 1: 84.67 
CURRENT: 84.22 
S 1: 84.12 
S 2: 83.72
GBPUSD 
R 2: 1.6000 
R 1: 1.5867 
CURRENT: 1.5789 
S 1: 1.5703 
S 2: 1.5624
AUDUSD 
R 2: 0.9704 
R 1: 0.9647
CURRENT: 0.9583 
S 1: 0.9472
S 2: 0.9361 
  • S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot

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