20 Dec: Markets mixed; all on hold waiting for the Senate to pass the US tax bill.

By | December 20, 2017

 

The US$ continues to trade mixed. While stocks are a little lower as traders book profits ahead of the tax bill vote which will take place later in the coming session. Stocks are treading water ahead of the vote as are the metals and oil.

The House of Reps have just voted on and passed the bill and we now wait on the Senate, which is expected ratify it. It could all be rather hectic after the event although the result does seem to be fully written in. Also in focus today, the German IFO business climate dropped slightly to 117.2 in December, down from 117.5, below expectation of 117.6. The Current assessment gauge rose to 125.4, up from 124.5 and beat expectation of 124.7, while the expectations gauge dropped to 109.5, down from 111.0, missing consensus of 110.8.  Released from US, housing starts rose 3.3% mom to 1.297m annualized rate in November. Building permits also rose 1.4% mm to 1.298m annualized rate. Both came in above market expectation.

Wednesday will be all about the US tax bill, and aside from that there is little on the calendar to provide direction. The Kiwi may see some action shortly with the release of the Q3 Current Account, November Trade Balance, and Visitor Arrivals. It will then be rather empty until the German PPI and the EU Current Account (Oct), a speech from BOE Governor, Mark Carney and the US Existing Home Sales. All eyes though will be on the upcoming tax bill vote.

CURRENCIES
EURUSD: 1.1845
Res  1.1860  1.1880  1.1900
Sup  1.1825  1.1800  1.1775
USDJPY: 112.92
Res  113.10  113.35  113.75
Sup  112.65  112.30  112.00
GBPUSD: 1.3384
Res  1.3400  1.3420  1.3450
Sup  1.3350  1.3330  1.3300
USDCHF: 0.9853
Res  0.9875  0.9890  0.9900
Sup  0.9835  0.9820  0.9800
AUDUSD: 0.7664
Res  0.7675  0.7685  0.7695
Sup  0.7645  0.7635  0.7625
NZDUSD: 0.6989
Res  0.7020  0.7035  0.7050
Sup  0.6975  0.6960  0.6940
INDICES / COMMODITIES
S+P: 2683
Res  2695  2700  2705
Sup  2675  2670  2665
DJ30.fs: 24774
Res  24900  25050  25000
Sup  24725  24635  24575
SPI200.fs: 6016
Res  6040  6060  6075
Sup  5990  6000  5970
GOLD: 1262
Res  1265  1270  1275
Sup  1255  1250  1245
XAGUSD: 16.13
Res  16.25  16.40  16.55
Sup  16.00  15.85  15.70
OIL (WTI): 57.52
Res  57.75  58.15  58.55
Sup  57.10  56.75  56.40