21 Sept. Fed acts as expected, keeping the dot plot unchanged. US$ higher. BOJ today. Draghi speaking later.

By | September 21, 2017

 

The US$ has spiked higher following the FOMC meeting at which the Fed kept the Fed funds target range at 1.00-1.25% as widely expected, while also confirming that the balance sheet normalisation process will commence in October. In terms of the growth outlook, the GDP projection for 2017 and 2019 were revised higher while the unemployment rate forecast for 2018 and 2019 were revised down.  The overall indication therefore remains in place and suggests that the Fed will raise rates once more in 2017 and three times next year. In other markets, the metals finished lower, under pressure from the firmer dollar, while US equity indices closed at another all time high, underpinned by the positive outlook for the economy.

A busy Thursday will kick off with the NZ Q2 GDP (expect; 0.8%mm, 2.5%yy), the RBA Monetary Policy Statement and the BOJ Interest Rate Decision (no change expected), Statement and Press Conference. Europe will contend with the European Bulletin (which replaced the previous ECB Bulletin) and a speech from Mario Draghi, while the US will get the Sept Philadelphia Fed Mfg Survey and the weekly Jobless Claims.

The levels in this table are a guide only.

CURRENCIES
EURUSD: 1.1894
Res  1.1920  1.1955  1.1980
Sup  1.1860  1.1835  1.1800
USDJPY: 112.16
Res  112.55  112.85  113.15
Sup  111.85  111.60  111.35
GBPUSD: 1.3489
Res  1.3515  1.3550  1.3590
Sup  1.3470  1.3420  1.3450
USDCHF: 0.9700
Res  0.9715  0.9740  0.9775
Sup  0.9675  0.9650  0.9625
AUDUSD: 0.8028
Res  0.8050  0.8075  0.8100
Sup  0.7985  0.7960  0.7940
NZDUSD: 0.7356
Res  0.7375  0.7400  0.7435
Sup  0.7330  0.7315  0.7300
INDICES / COMMODITIES
S&P: 2505
Res  2510  2515  2520
Sup  2500  2495  2490
DJI: 22381
Res  22390  22450  22500
Sup  22320  22270  22230
ASX SPI: 5696
Res  5715  5730  5745
Sup  5685  5665  5650
XAUUSD: 1300
Res  1305  1315  1325
Sup  1295  1290  1285
XAGUSD: 17.15
Res  17.30  17.45  17.60
Sup  17.00  16.85  16.70
WTI: 50.70
Res  51.15  51.90  52.90
Sup  50.05  49.60  48.90