4 May: Fed on hold. US$ mildly firmer, stocks steady. Services/Composite PMIs in focus today. NFP tomorrow.

By | May 4, 2017

 

The dollar is a little higher, while US stocks are unchanged after the Fed left interest rates unchanged at 1%, signaling the recent slowing in economic growth during Q1 as likely to be transitory. The statement also noted that the Fed will remain on a gradual path of policy tightening although it provided little direction on when they might next change interest rates, giving themselves added flexibility to raise or hold at their June meeting. In terms of economic data, the ADP Jobs figure, at +177K, was close to expectations, while the ISM Non-Mfg was firm, at 57.5 (exp 55.8).

Much of Thursday will be spent mulling through the FOMC decision, with only some secondary data due out of the EU and the US. The global Services/Composite PMIs may cause some mild volatility but that aside there is nothing to come from Europe. The highlights from the US will be the March Trade Balance and Factory Orders, along with the weekly Jobless Claims. Ahead of that, the Aud$ may see continued volatility, on the back of the release of the March Trade Balance and New Home Sales, a speech by the RBA Governor,Lowe and the Caixin China Services PMI. Japan is still out for Golden week.

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: 1.0886
Res  1.0900  1.0935  1.0950
Sup  1.0880  1.0855  1.0820
USDJPY: 112.67
Res  112.80  113.00  113.35
Sup  112.30  111.95  111.80
GBPUSD: 1.2867
Res  1.2900  1.2925  1.2945
Sup  1.2860  1.2835  1.2805
USDCHF: 0.9939
Res  0.9970  1.0000  1.0025
Sup  0.9910  0.9890  0.9865
AUDUSD: 0.7423
Res  0.7450  0.7470  0.7485
Sup  0.7420  0.7400  0.7385
NZDUSD: 0.6882
Res  0.6895  0.6910  0.6925
Sup  0.6865  0.6845  0.6820
INDICES / COMMODITIES
S&P: 2382
Res  2390  2400  2405
Sup  2375  2365  2355
DJI: 20872
Res  20905  20950  21010
Sup  20805  20765  20700
ASX SPI: 5871
Res  5890  5905  5920
Sup  5860  5835  5820
XAUUSD: 1237
Res  1245  1255  1265
Sup  1235  1220  1210
XAGUSD: 16.43
Res  16.65  16.90  17.20
Sup  16.30  16.00  15.80
WTI: 47.51
Res  48.20  49.05  49.80
Sup  47.05  46.50  46.00