ThinkForex - Analytics


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    NYLON HANDOVER: Stocks and risk extend the lead

    After a gloomy few weeks we are still seeing previously oversold markets extend gains. Whilst near-term picture remains bullish it is too soon to crack open the champagne and rule out further losses in the coming months.  

    - UK manufacturing and industrial production broke the gloomy trend by beating expectations overnight, sending GBPUSD to a 2-week high and making the swing low of 1.50 more prominent. Near-term outlook remains bullish with a break above 1.5327 opening up a run to 1.54
    - WTI and Brent edged lower but hold above key support levels, following three bullish sessions. Both appear to break to new highs and favour buy-the-dip strategies over the coming sessions. 
    - Ex FED Chair Bernanke said the FED are "facing a tough decision" on rates
    - Australian bond volatility is higher due to liquidity being its lowest since the GFC, with RBA deputy governor Guy Debelle saying in a speech last night "the liquidity environment has changed... you might as well get used to it". 
    - AUDUSD broke above 72c, taking full advantage of a weaker Greenback and 'doveless' RBA statement on Tuesday. A break above 0.728 resistance could threaten the medium-term bearish trend over coming weeks so will be a level to watch. 
    - Chinese markets return from their Bank Holiday today, so Asia liquidity should return to normal levels. The lack of liquidity could also help to explain the larger AUD moves seen this week (as it requires less effort to move prices with lower volumes). 

    File under: Forex, FX, Nylon, ThinkForex, Trading

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