5 Feb: Risk appetite builds. Stocks firm, Jpy under pressure. RBA ahead. EU/US Services/Composite PMIs later.

By | February 5, 2019

Monday has been fairly quiet although the US$ is mildly firmer after having ignored a miss in the US factory orders, which fell by 0.6% on the back of lower demand for machinery, missing expectations for a rise of 0.3%. It seemed that traders preferred look to Friday’s solid jobs data for guidance.

In other markets, stocks have also traded on a firm note, with the major indices up by 0.4%/0.9%. The metals were pretty much unchanged, while the main volatility of the session of the day was seen in WTI, which at one stage fell from a new 2½ month high of 55.80 to a low of 53.35 before a partial recovery, to end Monday at 54.65, down 1.4% on the day. The fall came amid reports of swelling crude stockpiles and disappointing economic activity in the US.

Much of Asia remains closed again on Tuesday although it will be a big one for Australia, with the release of the Performance of Services Index, Retail Sales (exp -0.1%), Trade Balance (exp $2.3 bio) and RBA Interest Rate Decision. No change is expected but the RBA could well remove the “tightening bias” from the statement which would likely impact on a lower Aud$. The rest of the day will be spent focusing on the Services/Composite PMIs.

Economic data highlights will include:                                                  

Tue: Australian AIG Performance of Services Index, Australian Retail Sales, Trade Balance RBA Interest Rate Decision, EU Services/Composite PMIs, EU Retail Sales, US Services PMI, ISM Non-Mfg PMI.

CURRENCIES
EURUSD: 1.1432
Res  1.1460  1.1490  1.1515
Sup  1.1405  1.1375  1.1350
USDJPY: 109.91
Res  110.15  110.45  110.80
Sup  109.50  109.15  108.80
GBPUSD: 1.3042
Res  1.3065  1.3095  1.3120
Sup  1.3025  1.3000  1.2975
USDCHF: 0.9980
Res  1.0000  1.0025  1.0055
Sup  0.9950  0.9925  0.9900
AUDUSD: 0.7223
Res  0.7245  0.7270  0.7295
Sup  0.7200  0.7180  0.7160
NZDUSD: 0.6883
Res  0.6895  0.6915  0.6935
Sup  0.6870  0.6850  0.6825
INDICES / COMMODITIES
S&P.fs: 2717
Res  2730  2745  2760
Sup  2705  2690  2675
DJ30.fs: 25101
Res  25140  25250  25350
Sup  25000  24900  24785
SPI200.fs: 5865
Res  5875  5905  5945
Sup  5840  5810  5785
XAUUSD: 1313
Res  1320  1325  1330
Sup  1310  1305  1300
XAGUSD: 15.87
Res  16.00  16.10  16.20
Sup  15.80  15.70  15.60
WTI.fs: 54.70
Res  55.65  56.35  56.95
Sup  53.25  52.45  51.35

Please Login to Comment.