4 Oct: US$ softer ahead of heavy data load, Wed/Thur/Fri. Composite/Services PMIs today. Yellen, Draghi too.

By | October 4, 2017

 

Markets have been generally choppy on Tuesday and have been unable to maintain the dollar’s positive momentum seen yesterday in Asia, with most pairs partially correcting the move in what has been a relatively steady session. The dollar is now marginally softer, while the main mover interest was in Sterling, which traded lower after the surprisingly poor UK construction data, which dropped to its lowest level since July 2016, at 48.1, down from 51.1 and missed expectation of 51.1, putting another dent in the prospect of a near term UK rate hike. In other markets stocks made yet another all-time high, moving up by around 0.2%, while the metals and WTI were both stuck in a tight range.

Wednesday will begin with the Australian Service PMI although that is pretty much it until the EU get up and running, when the European/UK Services/Composite PMIs are released. The EU August Retail Sales are also due (exp. 0.3%mm, 2.6%yy). The main focus in the US 2 Oct will be on the ADP jobs data (exp 135K), coming just 2 days ahead of Friday’s NFP figure. The Non-Mfg, Services and Composite PMIs are also due and then late in the day, both Janet Yellen and Mario Draghi will be speaking which will most likely cause some early Asian volatility.

CURRENCIES
EURUSD: 1.1743
Res  1.1765  1.1775  1.1800
Sup  1.1730  1.1715  1.1695
USDJPY: 112.86
Res  113.00  113.20  113.40
Sup  112.65  112.50  112.20
GBPUSD: 1.3236
Res  1.3250  1.3280  1.3300
Sup  1.3220  1.3150  1.3180
USDCHF: 0.9734
Res  0.9755  0.9785  0.9800
Sup  0.9710  0.9685  0.9670
AUDUSD: 0.7834
Res  0.7845  0.7860  0.7880
Sup  0.7815  0.7800  0.7785
NZDUSD: 0.7158
Res  0.7180  0.7195  0.7220
Sup  0.7145  0.7130  0.7100
INDICES / COMMODITIES
S&P: 2533
Res  2535  2540  2545
Sup  2525  2520  2515
DJI: 22612
Res  22650  22700  22750
Sup  22560  22515  22465
ASX SPI: 5691
Res  5700  5720  5735
Sup  5670  5650  5630
XAUUSD: 1272
Res  1275  1280  1285
Sup  1265  1260  1255
XAGUSD: 16.62
Res  16.75  16.90  17.05
Sup  16.55  16.35  16.15
WTI: 50.10
Res  50.70  51.30  51.75
Sup  49.65  49.00  48.40