A mixed batch of US data this morning, with most of the attention however centering on the weaker than expected consumer confidence result, despite a better Chicago PMI result and earlier Case Shiller which showed a slowing in the acceleration of price declines.
MIDDAY SNAPSHOT & ANALYSIS OF SELECTED RATES
A mixed batch of US data this morning, with most of the attention however centering on the weaker than expected consumer confidence result, despite a better Chicago PMI and earlier Case Shiller which showed a slowing in the acceleration of price declines. Famed investor George Soros was on the wires earlier with a fairly downbeat outlook on the global economy, warning that the state of inflation could drive rates higher and choke growth. Meanwhile, the USD has mounted a formidable recovery since the US open, with the currency also putting in gains against the Yen, even with equities dragging lower. A report from the IMF that the USD share of global reserve assets has risen, has also been sourced for some of the USD buying in New York. The DJIA and S&P are now lower by over 1% on the day, while oil has pulled back sharply to trade in negative territory after putting in fresh 2009 highs overnight. Gold is also well offered. The Yen is holding in the best against the buck, while Sterling is the weakest, despite a Cable rally to fresh 2009 highs overnight.
ANALYSIS OF SELECTED RATES
Aud/Cad: We have been trying to sell the cross with no luck as of yet but will again look to sell on Tuesday with the market continuing to surge to fresh 2009 highs by 0.9400 thus far. Daily studies reside well in overbought territory and a much needed and healthy corrective pullback is anticipated over the coming hours, back towards the 10-Day SMA at a minimum, which currently comes in some 200 points below at 0.9200. Look for any rallies above 0.9400 today to be very well offered, with a break back below 0.9315 to accelerate declines and confirm short-term topping structure. Strategy: SELL @0.9420 FOR AN OPEN OBJECTIVE, STOP @0.9570. Recommendation to be removed if not triggered by NY close (5pm ET) on Tuesday.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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Monday-Friday (between 5:30am-6:30am EST)
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“Indicator of the Day” – A Feature Report that Highlights our Most Significant Technical Indicator of the Day.
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“Midday Snapshot” – A Midday Fundamental Update, along with Technical Analysis of Selected Rates.
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