Posted on: 16 March 2016, by: Pepperstone Support, category: Market Review
Four prevalent themes drew market attention today:
US growth concerns with a focus on consumers – US retail sales report came out today softer with the headline number down 0.6% annualized compared to rising by 1.2% annualized in Q4. Atlanta Fed GDPNow 2016 forecast was downgraded by 0.3% to 1.9% on the back of this
FOMC decision tomorrow – expectations for the FED to acknowledge slightly improved conditions but may want to see conditions take a stronger hold before acting.
Continuation of oil weakness and inventory concerns have the market seemingly worried again. There are jitters over an anticipated 2-3mbblds build in crude inventories for the week ending March 11. API inventories out with a smaller than expected build, 1.5mln barrels vs the expected 3.4mln. Tomorrow we get the DOE inventories at 1030.
Another variable causing some worry among the market is a higher than expected fix in USDCNY on Tuesday. Fix came in 166 pips over Monday @ 6.5079
NZD market saw elevated volumes today mainly due to the impact of the Global Dairy trade data:
Fonterra’s GDT price index falls 2.9%
Whole milk powder price index falls 0.8% in GDT auction
NZD now trades below its post RBNZ low of 0.6618 looking to close and opening up .6550. AUDUSD support around 0.7400.
GBPUSD continued to weaken as the latest EU referendum poll showed a 2ppts lead in favor of leaving the EU (47% remain vs 49% leave)
USDCAD pushed up through solid resistance levels looking to close above its 200dma at 1.3324
Saw little continuation following the BoJ, with volumes down 25% from normal