FX News Today
- Stock markets struggled after Wall Street closed lower on Monday.
- US equities slumped as trade optimism gave way to fresh economic concerns after the drop in construction spending.
- The US may lift tariffs on Chinese imports, will sign off on final deal later in the month (March 27).
- Bloomberg also reported that some $90 bln (3%) in VAT reductions is planned by China as well.
- China lowered its official goal for economic growth this year to 6.0% from 6.5%.
- RBA left official cash rates unchanged at 1.50%, as expected.
- WTI future is trading at USD 56.36 per barrel.
- Gold dipped under $1,284 on risk-on trade, before finding prop from stock slump.
- USDJPY off Friday’s 10-week high at 112.07.
- EURUSD hit 1-week lows into ECB.
Charts of the Day
- EURUSD crossed the 20-day SMA. In the 1-hour chart, the bearish cross of 50- and 200-period EMA along with the negative configured indicators imply further declines.
- USDJPY moves for a 3rd day above an ascending triangle, the 200-DMA and on Friday broke the 11-day Resistance. This suggests the strengthening of the positive bias.
- GBPUSD held in an upwards channel in the daily chart despite 3 negative sessions. Intraday is below 3 MAs, while Support is at 1.3140 and 1.3110.
- XAUUSD is extended below BB. It found Support at 1,282.80 Next Support at 1,275 and Resistance at yesterday’s peak.
- Biggest Loser: NZDUSD forms 5 consecutive bearish daily candles, trading below the 20-day SMA, while the long low wings suggest an increasing bearish bias overall.
Main Macro Events Today
- EU Markit PMI Composite – The final Services PMI is expected to be confirmed at 52.3 which should leave the composite reading at 51.4, but with a slight risk to the upside after the marginal revision to the manufacturing PMI.
- UK Service PMI – The Services PMI reading is expected to come in at 50.0, the dividing line between contraction and expansion.
- US Home Sales – New home sales are estimated falling 8.7% in December to 600k after a 16.9% surge in November.
- US ISM Non-Manufacturing PMI – February ISM-NMI index is forecast to rebound to 57.3 after falling 1.3 points to 56.7 in January.
- BoE Governor Carney – BoE Carney is due to testify on Brexit, inflation, and the economy before the House of Lords Economic Affairs Committee, in London.
Support and Resistance
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Andria Pichidi
Market Analyst
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