28 Feb: Markets mixed, waiting on Trumps address to Congress, tomorrow.

By | February 28, 2017

 

 There has been plenty going on today, with the dollar again seeing mixed results as traders remain cautious ahead of the highly anticipated address to Congress by US president Donald Trump, due tomorrow. In terms of data, the US Durable Goods Orders grew 1.8% in January, below expectations of 1.9% while Ex-transport orders dropped -0.2% versus expectation of 0.5% growth. US pending home sales fell by -2.8% v expectations of + 0.9%, the lowest level in a year. Earlier, the Euro made some mild gains after a poll showed the French election centrist candidate, Macron, making up ground on the right wing, Marine Le Pen, while Cable is still attempting to recover from its early Asian selloff. Stocks are maintaining their habit of creeping to daily all-time highs after Donald Trump’s comments of a “big” infrastructure statement on Tuesday. Gold, Silver and Oil were also firm on hopes of a supportive announcement from Trump tomorrow although they retreated late in the day as the dollar moved a little higher. Late in the day, US$Jpy jumped sharply, presumably linked to Trumps earlier comments on an infrastructure announcement, tomorrow, and underpinned by some hawkish comments from the Fed’s Kaplan..

The coming session is going to be a busy one, in terms of data, although the focus will be entirely on what Donald Trump has to say when he addresses Congress on Tuesday, ( early Wednesday in the Asian time zone). Ahead of that, the focus in Asia today will be on the NZ Trade Balance, the Australian New Home Sales, Current Account and Private Sector Credit, and the Japanese Retail Trade/Industrial Production. From Europe, we get the German January Retail Sales and then later in the day there will be plenty of data to come from the US, led by the provisional Q4 GDP, and any upturn from the previous 1.9% could be a sign of a March rate hike, which would generally be supportive of the US dollar. Any chance of that happening may be swept aside if Donald Trump fails to address the tax considerations or to live up to expectations on his infrastructure spending plans. There is plenty of other US data out alongside the GDP (Current Account, Wholesale Inventories, Consumer Confidence, Richmond Fed Mfg Index, US Personal Consumption/Expenditure, Case Shiller House Price Index) although today is likely to be a session of waiting on Trump and could end up being largely rangebound.

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EURUSD: Euro is mildly higher today on news that centrist French presidential candidate Emmanuel Macron opened up his lead over Republican Francois Fillon and also closed the gap Marine Le Pen. Two polls published over the weekend showed that Macron has 25% voter support going into April’s election, two points behind Le Pen.

USDJPY: Higher, on hopes of a major infrastructure announcement from Donald Trump, tomorrow, underpinned by Kaplan comments on imminent rate hike.

GBPUSD: Consolidating after Asian selloff caused by stories of another Scottish referendum

AUDUSD: Rangebound. New Home Sales, Current Account (Q4), Private Sector Credit (Jan)

NZDUSD: Rangebound. Trade Balance due shortly.

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US STOCKS: Creeping higher ahead of Trump address to congress.

ASX SPI: Heavy, with the with the slide precipitated by sliding enthusiasm for the “Trump” trade.

METALS: Firm. Ditto Stocks

OIL: Firm but off its highs after a report showed a build of more than 800,000 barrels at the Cushing storage hub, where WTI is priced

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The levels in this table are a guide only. For more in depth analysis please go the “Articles” tab at the top of the page and scroll down.

CURRENCIES
EURUSD: 1.0587
Res  1.0590  1.0630  1.0675
Sup  1.0550  1.0495  1.0535
USDJPY: 112.75
Res  112.95  113.15  113.45
Sup  112.50  112.25  111.90
GBPUSD: 1.2439
Res  1.2480  1.2500  1.2535
Sup  1.2400  1.2380  1.2345
USDCHF: 1.0091
Res  1.0100  1.0115  1.0140
Sup  1.0065  1.0045  1.0025
AUDUSD: 0.7677
Res  0.7685  0.7700  0.7710
Sup  0.7665  0.7650  0.7635
NZDUSD: 0.7194
Res  0.7225  0.7240  0.7250
Sup  0.7180  0.7145  0.7130
INDICES / COMMODITIES
S+P: 2369
Res  2370  2374  2380
Sup  2360  2350  2340
DJI: 20823
Res  20830  20850  20900
Sup  20700  20660  20600
ASX SPI: 5699
Res  5720  5740  5760
Sup  5674  5664  5650
GOLD: 1253
Res  1264  1270  1286
Sup  1246  1230  1220
SILVER: 18.27
Res  18.50  18.65  19.00
Sup  18.20  18.00  17.80
OIL (WTI): 54.06
Res  54.60  55.00  55.50
Sup  53.75  53.35  52.70