US jobs data was much weaker than expected so the reaction was a weaker US dollar. Why? Well its because Aunty Janet and her cronies at the US Fed are watching the jobs market in order to see when it is best to raise rates. This is widely expected in June next year, if jobs data continues to show signs of improving economy. However weakness in that sector would push the rate hike out further in the calendar. So, investors pull cash from US bond (interest rates) market (this in turn weakens the currency) and look for higher yield elsewhere. The Scottish bid for freedom heats up and latest poll suggests they will get it. This will put the pound into tailspin. Europe is still a quagmire with no sign of growth anywhere in its zone as is Japan. Both economic blocs are talking up stimulus and more of it. China is still puttering along whilst out here in the antipodes the Kiwi is off the boil and the Aussie is stagnant with little action to drive price out of its range. DATA HIGHLIGHTS TODAY – Chinese Trade Balance. Canadian Building Permits. AUDUSD – A HHHL buyer bar but really just doing nothing. Resistance: 9460/9522 Support: 9200/9085/8900 EURUSD – Inside test bar still got selling in it. Hard to see if there will be a bounce here but fundamentally there is little reason to buy the euro. Resistance: 13500/13650/13890/14050 Support: 12750 GBPUSD – Tested 1.63 and held it, finishing as a low test bar off support. With the Scot vote 10 days away this support level may not be strong enough to hold the tide. Until then though it could hold and force price up to 1.65 area. Resistance: 1.7183/1.731.7370 Support: 1.63 NZDUSD – A buyer bar but LHLL. Its not ready to buy just yet, on the other hand you cant sell it here either. Resistance: 8745/8842 Support: 8150/8090 USDCAD – Inside almost doji bar, still chopping and will continue to do so. Resistance: 10950/1.1050 Support: 10683/10655/10486 USDJPY – Tagged the fib level at 105.57 and finished as an engulfing seller bar. There is divergence but not enough sellers present to warrant shorting this. Resistance: 105.57/108.35/110.50 Support: 101.30/100.62/100/99.80
Posted on: Sun, 07 Sep 2014 20:46:04 +0000
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