3 Oct: Risk aversion sends Euro, Aud, Kiwi lower. Yen, Gold higher. Services/Composite PMIs in focus today.

By | October 3, 2018

 

The US$ is mixed on Wednesday with the Euro again under pressure, particularly in early Europe, as Italy and the EU stepped up their argument over the Italian budget debt levels. The commodity bloc currencies, the Aud$ and Kiwi were also under heavy pressure after the RBA yesterday, although they have recovered from their European lows, while Cable looks very sick because of the Tory infighting over the current Brexit plans. UK PM Theresa May is facing criticism on from all sides, including from both the EU and her own Brexiteers over her Chequers Plan, with Boris Johnson today giving a keynote speech denouncing the current path towards Brexit. The Yen was a strong performer, with the dollar failing to carry on to new highs and heading into reverse as some safe haven demand settled in.

Elsewhere, US stocks were mixed, DJI up (to a new all-time high), Nasdaq down, S+P flat, while WTI is unchanged after a choppy session which included a new 4 year high. In the metals, interestingly, despite the US$ bid tone, Gold and Silver were well bid, which may be something to keep an eye on, with the charts beginning to look slightly more positive for both, at least in the short term..

Wednesday will be a bit thin for data but will see the Australian Building Permits for July (exp -2.5%), while the EU/US will look to the Services/Composite PMIs for guidance, along with the speech from the ECB’s Mersch.  The ADP Jobs data will be released from the US (exp 185K), while Fed speakers will include Evans, Barkin, Brainard, Mester and Powell.

CURRENCIES
EURUSD: 1.1548
Res  1.1570  1.1600  1.1630
Sup  1.1530  1.1505  1.1475
USDJPY: 113.63
Res  113.80  114.00  114.25
Sup  113.50  113.30  113.10
GBPUSD: 1.2979
Res  1.3000  1.3025  1.3050
Sup  1.2960  1.2930  1.2895
USDCHF: 0.9840
Res  0.9860  0.9875  0.9900
Sup  0.9820  0.9800  0.9780
AUDUSD: 0.7187
Res  0.7205  0.7220  0.7240
Sup  0.7175  0.7160  0.7140
NZDUSD: 0.6594
Res  0.6610  0.6625  0.6640
Sup  0.6575  0.6560  0.6540
INDICES / COMMODITIES
S&P.fs: 2928
Res  2940  2950  2960
Sup  2920  2910  2900
DJ30.fs: 26801
Res  26835  26900  27000
Sup  26735  26675  26600
SPI200.fs: 6126
Res  6135  6150  6175
Sup  6105  6090  6075
XAUUSD: 1203
Res  1210  1215  1220
Sup  1200  1195  1190
XAGUSD: 14.67
Res  14.75  14.90  15.00
Sup  14.55  14.45  14.35
WTI.fs: 75.09
Res  75.90  77.05  78.20
Sup  74.90  74.00  72.90