28 Dec: Commodity currencies firm on the back of strong copper prices, positive risk sentiment.

By | December 28, 2017

 

Although conditions remain thin, the commodity currencies are very firm, underpinned on Wednesday by a surge in copper prices, which reached levels last seen in 2014 on news that China s is cutting production.  The Aud$ is particularly strong but the Kiwi and Cad$ are not too far behind. Sterling also made some small gains in post-holiday trade on speculation of smoother Brexit negotiations in 2018. On the other hand, the Chf and Jpy are weak as traders are back in risk seeking mode ahead of the New Year. The US$ is also under pressure, which has assisted the metals to make some gains, further underpinning the commodity bloc currencies, while WTI, which soared to 60.00 on Tuesday due to production issues in the North Sea, eased back a little on Wednesday ahead of the weekly API Inventory figures. Stocks have traded sideways with little new news to drive direction over the holiday period.

Looking ahead, Thursday will be thin on data, but the focus will look to the Japanese Trade data for November ahead of the EU Economic Bulletin, while later in the day the US will interest will be on Goods Trade Balance (Nov), Jobless Claims, Wholesale Inventories and Chicago Purchasing Managers Index. Late in the day the EIA Crude Oil Stocks Weekly Change will also be released.

CURRENCIES
EURUSD: 1.1896
Res  1.1910  1.1940  1.1960
Sup  1.1875  1.1845  1.1815
USDJPY: 113.25
Res  113.45  113.75  113.90
Sup  113.10  112.85  112.50
GBPUSD: 1.3400
Res  1.3430  1.3465  1.3520
Sup  1.3365  1.3335  1.3300
USDCHF: 0.9867
Res  0.9880  0.9905  0.9920
Sup  0.9860  0.9845  0.9830
AUDUSD: 0.7774
Res  0.7785  0.7805  0.7835
Sup  0.7750  0.7725  0.7695
NZDUSD: 0.7067
Res  0.7075  0.7100  0.7120
Sup  0.7055  0.7035  0.7010
INDICES / COMMODITIES
S&P: 2682
Res  2690  2695  2700
Sup  2680  2675  2670
DJI: 24773
Res  24890  25000  25100
Sup  24720  24625  24525
ASX SPI: 6025
Res  6075  6100  6125
Sup  5995  5970  5940
XAUUSD: 1288
Res  1290  1295  1300
Sup  1280  1275  1270
XAGUSD: 16.69
Res  16.75  16.90  17.00
Sup  16.55  16.40  16.30
WTI: 59.56
Res  59.95  61.10  61.80
Sup  59.30  59.00  58.70