6 Nov: US$ firmer despite mixed NFP reading. RBA and RBNZ Meetings this week.

By | November 6, 2017

 

After initially heading a little lower on Friday following the release of the US employment data, the dollar ended the day on a solid note, partly driven be recovering Treasury yields but with traders also now looking forward to the December FOMC meeting at which a rate hike is generally expected.  The headline job growth, as shown in the Non-Farm Payrolls report was at 261k in October. This was below the expectation of 310k but the previous month’s figure was revised up from -33k contraction to +18k, pretty much negating Friday’s miss. The headline unemployment rate dropped to 4.1%, below expectation of being unchanged at 4.2%. In other markets, the S+P and DJI both made another new all-time high, closing nearby and underpinned by the big tech stocks, in what was a fairly steady stock market, while the metals were heavy, under pressure from the firmer dollar. WTI was firmer, at a 2 year high  after a late-session surge on the back of data showing signs of US production tightening, with the  Baker Hughes Oil Rig Count  falling to a nearly six-month low.

The coming week will have plenty going on although very little to be seen from the US, with the week ending with the Veterans Day holiday. Ahead of that, the important focus will be on the Markit Manufacturing/Services/Composite PMIs and speeches from Yellen/Dudley (Monday), the RBA Meeting (Tuesday), China Trade Balance (Wed), RBNZ Meeting and China CPI (Thur) and the UK Manufacturing/Industrial Production (Fri). Have a good week.

CURRENCIES
EURUSD: 1.1608
Res  1.1640  1.1670  1.1700
Sup  1.1600  1.1575  1.1550
USDJPY: 114.05
Res  114.25  114.45  114.90
Sup  113.80  113.55  113.35
GBPUSD: 1.3076
Res  1.3100  1.3130  1.3165
Sup  1.3040  1.3025  1.2995
USDCHF: 1.0004
Res  1.0040  1.0075  1.0100
Sup  0.9970  0.9945  0.9920
AUDUSD: 0.7650
Res  0.7665  0.7685  0.7700
Sup  0.7640  0.7625  0.7600
NZDUSD: 0.6906
Res  0.6940  0.6960  0.6985
Sup  0.6880  0.6860  0.6820
INDICES / COMMODITIES
S&P: 2581
Res  2585  2590  2600
Sup  2575  2570  2565
DJI: 23446
Res  23495  23540  23650
Sup  23365  23280  23200
ASX SPI: 5959
Res  5960  5975  6000
Sup  5945  5930  5915
XAUUSD: 1270
Res  1275  1280  1285
Sup  1265  1260  1255
XAGUSD: 16.83
Res  17.00  17.15  17.30
Sup  16.75  16.60  16.45
WTI: 55.68
Res  56.00  56.50  57.00
Sup  55.00  54.40  53.85