19 Oct: US stocks at new highs – again. Australian Jobs, China GDP, RS & IO coming up.

By | October 19, 2017

 

The main action today has been in the stock markets, with the DJI and S+P accelerating their run higher after some strong corporate earnings results and in hope of Trump’s tax plan eventually being passed. The DJI is up around 0.8% while the S+P is up by 0.2%. In the currencies, the US$ has been mixed and generally firm although the Euro is ending the day higher and is close to a bullish outside day, needing to close above 1.1800 5pm NY to do so.  On the other side of the coin, US$Chf and US$Jpy both retain a bid tone, while Cable has held close to previous levels after the  UK unemployment rate was unchanged at 4.3% in August, staying at 42 year low. The average weekly earnings rose 2.2%, above expectation of 2.1%, while the claimant counts rose 1.7k in September, below expectation of 3.2k. Claimant count rate was unchanged at 2.3%. The Aud and Kiwi are mostly rangebound, as are the metals and WTI.

Thursday will kick off in Asia with the Japanese trade data, the Australian unemployment (expect 15K, 5.6%) and a heap of China data, including the September Retail Sales (exp 10.2%yy), Industrial Production (exp 6.2%yy), Urban Investment (exp 7.7%yy) and the Q3 GDP (exp 1.7%qq, 6.8%yy), which could all add up to make for a lively session. On top of all this, look for a resolve of the NZ election result which may see a quick move in the Kiwi. It becomes rather tame after the Asian session though, with the UK Retail Sales (exp -0.2%mm, 2.0%yy; Ex-auto +0.1%mm, 2.4%yy) being the European highlight, while from the US it will be the Philadelphia Fed Manufacturing Survey (exp 23.7), weekly jobless claims and a speech from the Fed’s George that will be in focus. There is also a EU Council Meeting taking place so watch for any potential headlines to come from that; and likewise with the Chinese leadership conference.

CURRENCIES
EURUSD: 1.1787
Res  1.1805  1.1820  1.1840
Sup  1.1760  1.1735  1.1720
USDJPY: 112.93
Res  113.05  113.25  113.45
Sup  112.75  112.60  112.35
GBPUSD: 1.3201
Res  1.3230  1.3265  1.3285
Sup  1.3150  1.3120  1.3075
USDCHF: 0.9815
Res  0.9835  0.9850  0.9880
Sup  0.9800  0.9775  0.9750
AUDUSD: 0.7846
Res  0.7860  0.7875  0.7890
Sup  0.7830  0.7815  0.7800
NZDUSD: 0.7154
Res  0.7180  0.7210  0.7245
Sup  0.7120  0.7100  0.7075
INDICES / COMMODITIES
S&P: 2560
Res  2565  2570  2575
Sup  2555  2550  2545
DJI: 23119
Res  23150  23200  23250
Sup  23065  23000  22910
ASX SPI: 5868
Res  5885  5900  5925
Sup  5850  5835  5815
XAUUSD: 1281
Res  1285  1290  1295
Sup  1275  1270  1265
XAGUSD: 16.98
Res  17.10  17.25  17.45
Sup  16.90  16.75  16.60
WTI: 52.23
Res  52.60  53.70  54.40
Sup  51.90  51.20  50.70