6 June: Choppy session. Cable a bit higher after firm UK data. Australian GDP coming up

By | June 6, 2018

 

Asia was quiet with the Aud not showing any interest in the RBA decision to leave rates on hold, but things livened up in Europe after the release of the UK services PMI for May. Came in better than expected, pushing Cable higher, with the data hinting that the soft patch in Q1 may be temporary, but maybe not enough to convince the BOE of any rate hikes any time soon. Elsewhere, disappointing EU and strong US data initially pushed the Euro lower/US$ higher, before a turnaround, after a story did the rounds that the ECB is said to set June 14 as a “live meeting”. All up there was little change on the day, with the Euro still hovering near 1.1700. Elsewhere the Aud$ was nett lower on the day while US$Jpy was mostly choppy below 110.00. Stocks gave up a little ground, as did WTI, which still looks heavy, while Gold headed back up to 1300.

The main event on Tuesday will be the RBA Meeting although no change to policy is expected and the focus will be on the statement. Ahead of the RBA, the Asian timezone will also see the Australian Current Account (exp -$9.95 bio), TD Inflation and the Caixin China Services PMI. Later, in Europe and then in the US, the Composite/Services PMIs will be the main event. Also coming up later, in Europe in the day, will be the Global Dairy Trade Index and in the US, the API weekly Crude Oil Stock Inventory.

As before, over and above the light data calendar this week, the rhetoric around the ongoing escalation of a ‘trade war’ between the US, China, Europe, Canada and Mexico will continue to dominate trade, as will the political woes in Italy, the EU and the UK (Brexit) , which although all currently looking a little calmer, could re-ignite at any time.

CURRENCIES
EURUSD: 1.1713
Res  1.1745  1.1790  1.1830
Sup  1.1650  1.1615  1.1590
USDJPY: 109.70
Res  110.00  110.30  110.55
Sup  109.35  109.05  108.75
GBPUSD: 1.3388
Res  1.3400  1.3420  1.3440
Sup  1.3355  1.3335  1.3300
USDCHF: 0.9845
Res  0.9890  0.9910  0.9935
Sup  0.9825  0.9800  0.9765
AUDUSD: 0.7612
Res  0.7635  0.7665  0.7700
Sup  0.7595  0.7560  0.7515
NZDUSD: 0.7024
Res  0.7050  0.7070  0.7095
Sup  0.6995  0.6960  0.6920
INDICES / COMMODITIES
S+P: 2747
Res  2750  2760  2770
Sup  2735  2725  2715
DJ30.fs: 24786
Res  24795  24855  24905
Sup  24715  24665  24585
SPI200.fs: 6015
Res  6025  6040  6055
Sup  5995  5975  5950
GOLD: 1297
Res  1300  1305  1310
Sup  1290  1285  1280
XAGUSD: 16.51
Res  16.50  16.60  16.70
Sup  16.35  16.25  16.20
OIL (WTI): 65.31
Res  65.30  66.25  67.00
Sup  64.25  63.55  62.80