China has been in the news yet again as the Peoples Bank of China (PBOC) continued to devalue the yuen against the USD overnight. With many expecting a heavy handed approach they certainly got it, as industrial production data showed a strong drop to 6.0% on the charts, this was well below the expected 6.6% from the markets. As a result of all this movement we saw the commodity currencies take a large dive on the charts, and at present it looks likely there could be more pressure for them in the coming week.
The US market was not much better on the whole scope of things as JOTLS job openings came in at 5.25M on the charts, well below the market expectations which has lead to many believing that the labour market in the US may be slowing in the long term. Personally, I believe it has hit optimal levels and the FED is looking for a good excuse to lift rates, but inflation has been weak and holding back any positive rate hikes.
Oil continues to drift down the charts, and I have a major focus on this at present as it continues to impress me in the short term from a bearish standpoint. Current resistance at 43.43 has so far stopped any further gains, and I believe this will bolster the case for a bearish run down the charts. Certainly with Iran looking to provide more oil, and the recent data out of China, it has certainly lead to a spate of worrying over the sustainability of oil consumption on a global scale.
Silver continues its glorious run up the charts as of late, as the bulls take control and look to push it forward. Many people forgot the basics of silver in that it generally strengthens when economies actually strengthen, and at present there are very few bears apparent in the market. My current watch though is on the very strong resistance level at 15.698 which has so far encountered a large amount of pressure and will endear to do so in the short term.44
While the Aussie may have been stung overnight the AUDSUSD continued to claw back some ground in the short term. After cruising past 0.7304 support is looking all the more stronger on the charts, but I'm still weary of bears in the market who will look to take full advantage of a weaker AUDUSD in the near future.
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