23 Feb: US$ under pressure following bland FOMC Minutes. Australian CAPEX coming up. German GDP later.

By | February 23, 2017

The dollar is heavy following the release of the FOMC Minutes at which it was noted that many Fed board members said that it may be appropriate to raise interest rates again “fairly soon” should jobs and inflation data come in line with expectations. Traders were hoping for a bit more with regards to the timing of the next hike, but as often happens, were left disappointed. In other data released on Wednesday, the German IFO business climate rose to 111.0 in February, up from 109.8, above expectation of 109.6 while the Expectation gauge rose to 104.0, up from 103.2, above expectation of 103.0. UK Q4 GDP growth was revised up to 0.7% qq, up from 0.6% qq although total business investments dropped -1.0% qq versus expectation of 0.0% qq. US housing data was very solid, with the Existing home sales jumping 3.3% to a seasonally adjusted annual rate of 5.69 million units in January, the highest level since February 2007.

In terms of data, Thursday will begin with the Australian Q4 CAPEX figures (exp -1%) and some secondary Japanese figures (Coincident Index, Leading Economic Index). The European focus will be on the German Q4 GDP (exp 0.4% qq, 1.2% yy) while later, from the US, we get the Chicago Fed National Activity Index, Kansas Fed Mfg Activity, the House Price Index, the weekly Jobless Claims and a speech from the Fed’s Lockhart.

To read the full technical outlook for each product go to the “Articles” drop-down list at the top of the page.

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EURUSD: Choppy, with the dollar under some pressure following the FOMC Minutes.

USDJPY: Slightly lower, near the recent 113.00 pivot.

GBPUSD: Rangebound 1.24/1.25

AUDUSD: Underpinned by RBA comments and slightly disappointing FOMC Minutes.

NZDUSD: Slightly firm following the FOMC Minutes

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STOCKS: Sideways. DJI briefly at new highs

METALS: Rangebound

OIL: Down around 1%. Back in the range.

To read the full technical outlook for each product go to the “Articles” drop-down list at the top of the page.

CURRENCIES
EURUSD: 1.0571
Res  1.0585  1.0605  1.0635
Sup  1.0525  1.0480  1.0495
USDJPY: 113.03
Res  113.30  113.55  113.80
Sup  112.90  112.60  112.35
GBPUSD: 1.2460
Res  1.2480  1.2510  1.2525
Sup  1.2440  1.2415  1.2400
USDCHF: 1.0091
Res  1.0120  1.0140  1.0160
Sup  1.0075  1.0050  1.0025
AUDUSD: 0.7710
Res  0.7715  0.7730  0.7750
Sup  0.7690  0.7675  0.7650
NZDUSD: 0.7197
Res  0.7200  0.7220  0.7245
Sup  0.7175  0.7145  0.7130
INDICES / COMMODITIES
S+P: 2361
Res  2364  2370  2380
Sup  2354  2348  2340
DJI: 20737
Res  20760  20800  20900
Sup  20665  20600  20505
ASX SPI: 5756
Res  5770  5778  5790
Sup  5746  5726  5714
GOLD: 1238
Res  1244  1256  1266
Sup  1230  1226  1216
SILVER: 18.05
Res  18.10  18.20  18.45
Sup  17.90  17.75  17.55
OIL (WTI): 53.55
Res  54.00  55.00  55.50
Sup  53.35  52.95  52.45