8 Nov: US$ mostly firm but bond yields looking heavy. China Trade data ahead.

By | November 8, 2017

 

The US dollar has traded generally on a firm note on Tuesday, underpinned by hopes of progress in the proposed tax cuts in the US although US treasury yields are lower and testing key support, which if broken could take some steam out of further upside momentum,  currently reflected in a slightly softer US$Jpy. Aside from the US$, the Aud is a weak performer today following the RBA Meeting yesterday, which left rates unchanged – as expected. In other markets, stocks made another new high but then reversed as traders took profit in tech stocks, while the metals also reversed the gains of the previous session, finishing down around 0.4%. WTI made a new 2 year high at 57.66 and has spent the rest of the session consolidating just below there.

For the most part Wednesday will be rather devoid of meaningful data so it could end up being another relatively sideways day. The AUD$ could see some action though with the release of the China Trade Balance (exp. +39.5 bio Exports +7.2%, Imports +16%). Otherwise, the ECB Non-Monetary Policy Meeting minutes will be released, while oil traders will want to look out for the EIA weekly crude oil stock change.

CURRENCIES
EURUSD: 1.1588
Res  1.1600  1.1615  1.1625
Sup  1.1570  1.1550  1.1520
USDJPY: 113.87
Res  114.00  114.45  114.75
Sup  113.70  113.50  113.25
GBPUSD: 1.3165
Res  1.3180  1.3215  1.3250
Sup  1.3150  1.3125  1.3105
USDCHF: 0.9997
Res  1.0010  1.0025  1.0040
Sup  0.9975  0.9960  0.9945
AUDUSD: 0.7643
Res  0.7650  0.7675  0.7700
Sup  0.7625  0.7600  0.7570
NZDUSD: 0.6904
Res  0.6915  0.6930  0.6960
Sup  0.6890  0.6875  0.6850
INDICES / COMMODITIES
S&P: 2584
Res  2595  2600  2610
Sup  2580  2575  2570
DJI: 23453
Res  23500  23550  23600
Sup  23410  23390  23345
ASX SPI: 5973
Res  5985  6005  6025
Sup  5960  5950  5935
XAUUSD: 1276
Res  1280  1285  1290
Sup  1270  1265  1260
XAGUSD: 16.96
Res  17.15  17.30  17.45
Sup  16.90  16.80  16.70
WTI: 57.22
Res  57.65  58.50  59.00
Sup  56.80  56.25  55.60