28 June: US$, WTI both higher; Stocks lower. RBNZ coming up, German CPI, US Q1 GDP/PCE later

By | June 28, 2018

 

The US dollar is sharply higher at the end of Wednesday trade after the White House softened its stance on restricting foreign investment. The move came after Donald Trump backed down on his tough stance to curb Chinese investments, after complaints from businesses interests and said he would back Congress’ passage of the Foreign Investment Risk Review Modernization Act which would expand the powers of the Committee on Foreign Investment in the United States, helping it combat alleged theft of US intellectual property by China. Stocks rallied on the news but then gave up its gains and ended down by around 0.75%. Heading in the other direction was oil, with WTI rising to its highest level since November 2014, underpinned by the large draw in US crude supplies, as well as unexpected supply outages in Libya and Canada.

In terms of economic data, the US Durable Goods Orders dropped -0.6% in May versus expectation of -0.9%. Ex-transport orders dropped -0.3% versus expectation of 0.5% rise. The US Trade Deficit narrowed to US$ -64.8bio in May, while the Wholesale Inventories rose 0.5% mm in May. The May Pending Homes Index came in at  105.9, versus 106.4 previously.

Thursday will be busy, kicking off in Asia with the RBNZ Meeting, Statement. No change is expected but the RBNZ may have a bearish lean and would like to see the currency lower. This will be followed by the Japan Retail Trade figures for May, but with little else to come from Asia. The European Council Meeting will take place later, with the session also to include the Preliminary June German (PI (exp 0.2%mm, 2.1%yy; HICP, exp 2.1%yy) and the July Consumer Confidence, the EU Economic Sentiment Indicator, Industrial Confidence, Services Sentiment and Business Climate. The US session will follow on with the Q1 GDP (exp 2.2%, Index 1.9%) and US Personal Consumption/ Expenditure figure (Q1 PCE; exp 2.7%). Speeches will come via the BOE’s Haldane and the Fed’s Bullard/Bostic. Have a good day

CURRENCIES
EURUSD: 1.1559
Res  1.1580  1.1600  1.1620
Sup  1.1540  1.1530  1.1510
USDJPY: 110.20
Res  110.45  110.75  110.90
Sup  110.00  109.80  109.55
GBPUSD: 1.3119
Res  1.3135  1.3150  1.3175
Sup  1.3100  1.3080  1.3060
USDCHF: 0.9963
Res  0.9975  0.9990  1.0000
Sup  0.9955  0.9940  0.9925
AUDUSD: 0.7344
Res  0.7360  0.7380  0.7400
Sup  0.7325  0.7300  0.7285
NZDUSD: 0.6799
Res  0.6825  0.6850  0.6870
Sup  0.6780  0.6750  0.6720
INDICES / COMMODITIES
S&P: 2705
Res  2715  2730  2745
Sup  2700  2685  2674
DJ30: 24136
Res  24280  24430  24560
Sup  24065  23950  23845
SPI200: 6126
Res  6155  6175  6200
Sup  6105  6075  6055
XAUUSD: 1252
Res  1260  1265  1270
Sup  1250  1245  1240
XAGUSD: 16.04
Res  16.25 16.40 16.60
Sup  15.85  15.70  15.50
WTI: 72.28
Res  73.05  74.15  75.50
Sup  71.85  71.15  70.55