6 Apr: A volatile ride but FOMC minutes send dollar/stocks lower. Trump-Xi meeting ahead today.

By | April 6, 2017

 

It has been a fairly quiet session for the most-part on Thursday, at least until the release of the FOMC Minutes, which confirmed that the Fed is considering letting the balance sheet start to run off, without explaining how it will do it. The reaction was mixed, with stocks showing the most interest by spiking higher before reversing and heading back to where they had started from, and ending the day on their lows. The dollar was mixed, with the $Jpy being the most notable mover, briefly heading to a session high before reversing sharply lower, to finish the day at the lows. In other developments, WTI made a new 1 month high, but has since reversed those gains and is finishing towards the day’s lows after the latest Energy Information Administration (EIA) report showed an unexpected rise in U.S. crude inventories to a record high. In terms of data, note that the ADP employment report showed 263k growth in private sector jobs, (v expectations of 189k) while the prior month’s figure was revised down from 298k to 245k, but was still a solid figure, and comes ahead of tomorrow’s US employment/NFP report.

The main action on Thursday will revolve around the Trump/Xi meeting and until then it looks likely to be rather quiet. Ahead of that though, the RBA Asst Governor, Debelle will be speaking, while the Caixin China Services PMI will also be released and could create some activity in the Aud.  From Europe, we get the German Factory Orders and the ECB Minutes. It mostly looks like a day of sitting on hands, waiting for Trump and his Twitter account to get busy.

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: 1.0664
Res  1.0685  1.0700  1.0720
Sup  1.0630  1.0600  1.0585
USDJPY: 110.54
Res  111.00  111.45  111.60
Sup  110.40  110.10  109.80
GBPUSD: 1.2486
Res  1.2500  1.2555  1.2595
Sup  1.2450  1.2420  1.2370
USDCHF: 1.0042
Res  1.0060  1.0080  1.0095
Sup  1.0010  0.9990  0.9960
AUDUSD: 0.7569
Res  0.7585  0.7600  0.7615
Sup  0.7545  0.7525  0.7510
NZDUSD: 0.6969
Res  0.6985  0.7005  0.7020
Sup  0.6940  0.6925  0.6890
INDICES / COMMODITIES
S+P: 2344
Res  2355  2365  2374
Sup  2340  2333  2325
DJ30.fs: 20554
Res  20650  20700  20825
Sup  20560  20515  20450
SPI200.fs: 5840
Res  5860  5875  5900
Sup  5830  5805  5775
GOLD: 1256
Res  1260  1270  1288
Sup  1244  1234  1226
XAGUSD: 18.28
Res  18.40  18.55  18.80
Sup  18.15  18.00  17.85
OIL (WTI): 50.80
Res  51.00  51.85  52.50
Sup  50.10  49.80  49.25