Daily FX Market Commentary

Andy Harrison

Good morning,

 

LMAX Close

USDJPY 120.461 | EURUSD 1.09202 | AUDUSD 0.72962 | NZDUSD 0.68752 | USDCAD 1.38437 | USDCHF 0.99326 | GBPUSD 1.48174 |

 

Interbank Ranges as of 6am London time

Highs    Lows

USD/JPY               120.58 | 120.355

EUR/USD             1.09355 | 1.0919

EUR/JPY               131.76 | 131.57

AUD/USD            0.7296 | 0.7272

NZD/USD             0.6872 | 0.6848

USD/CAD             1.3856 | 1.3830

EUR/CHF              1.0850 | 1.08395

USD/CHF             0.9925 | 0.99185

GBP/USD             1.4838 | 1.4813

EUR/GBP             0.7375 | 0.7366

 

For Today

  • EUR: A tight range as you’d expect with the market moving off the 1.0920 areas and moving to trade above the 1.0930 levels but with little conviction and more the movement in other pairs weakening the USD across the board a little, Topside offers likely into the 1.0980 areas with those offers building into the 1.1000 level, a push through the level sees a some congestion into the stronger 1.1040-60 areas. Downside bids into the 1.0900 level with a move through the area likely to see some weak stops into the 1.0880 areas before fresh bids move into the mid 1.08 area and then stronger bids likely to hold the market to the 1.0800 level.
  • GBP: A little more movement for the Cable with the market rising steadily from below the 1.4820 levels and gradually pushing to the 1.4840 level before slowly moving to the grey hours, downside bids into the 1.4800 levels and continuing through congestion and the market opening a little one the market pushes towards the 1.4750 levels and then the downside could possibly see more open movement to the lows from April. Topside offers likely into the 1.4870-1.4900 levels with congestion through the level and with a limited market and only a short period before the market breaks for the New Year tough to see that much movement.
  • JPY: There were early expectations of a resurgent USDJPY however, although the market tested towards the 120.60 levels in early trading the opening in Tokyo saw only limited buying and sufficient offers to hold the market through the early Tokyo session before starting a slow drop and the break back through the opening 120.45 areas saw the market test to the lows around the 120.35 level, Topside offers through the 120.60 level are likely to be limited and will probably increase from the 120.80 areas however, a push through the 121.00 areas is likely to see weak stops appearing and opening the topside for further tests higher, downside bids into the 120.20 levels likely to provide some decent support through to 120.00 with the bids likely to disappear on a move through the 119.80 areas and stops appearing for a test through to the 119.50 areas and light bids possibly then exhausting a limited market.
  • AUD: Opening around the 0.7295 level the market drifted into the Tokyo session to the 0.7290 areas, a strengthening USDJPY allowed the Oz room lower and the market dipped to the 0.7275 area before finding some limited buying and a weakening USD from then on saw the market rising slowly to test the highs again. Topside offers through the 0.7300 area and those offers likely to continue in patches to the 0.7350 area before the market opens a little, Downside bids into the 0.7250 areas and although the market is light in the area but possibly sufficient to hold the market however, a move through the area will then see a concentration of bids into the 72 cent area.

 

Overnight News

CNY:

Offshore Yuan is again trading over 1000 pips lower than onshore vs. USD

PBoC to suspend some of the cross border participating foreign exchange banks Reuters

RUB:

Bailout bank needs rescuing with an estimated RUB 1.3T black hole

 

 

Today’s data

Actual = A | Consensus = C | Previous = P | Revised = R All timings GMT

07:00     GBP       Nationwide House Prices M/M Dec C 0.40% | P 0.10%

07:00     CHF        UBS Consumption Indicator Nov               P 1.6

09:00     EUR        Eurozone M3 Y/Y Nov C 5.00% | P 5.30%

15:00     USD       Pending Home Sales M/M Nov C 0.60% | P 0.20%

15:30    USD       Crude Oil Inventories P -5.9M

 

Yesterday’s premiership results

Actual = A | Consensus = C | Previous = P | Revised = R All timings GMT

USD       Trade Balance Nov A -60.5B | C -60.9B | P -58.4B

USD       S&P/Case-Shiller Composite-20 Y/Y Oct A 5.50% | C 5.60% | P 5.45%

USD       Consumer Confidence Dec A 96.5 | C 93.9 | P 90.4

 

Good Luck,

Andy

 

 

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LMAX Exchange Market Commentary   AUDUSD   Andy Harrison  

Any opinions, news, research, analyses, prices or other information ("information") contained on this Blog, constitutes marketing communication and it has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Further, the information contained within this Blog does not contain (and should not be construed as containing) investment advice or an investment recommendation, or an offer of, or solicitation for, a transaction in any financial instrument. LMAX Group has not verified the accuracy or basis-in-fact of any claim or statement made by any third parties as comments for every Blog entry.

LMAX Group will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. No representation or warranty is given as to the accuracy or completeness of the above information. While the produced information was obtained from sources deemed to be reliable, LMAX Group does not provide any guarantees about the reliability of such sources. Consequently any person acting on it does so entirely at his or her own risk. It is not a place to slander, use unacceptable language or to promote LMAX Group or any other FX and CFD provider and any such postings, excessive or unjust comments and attacks will not be allowed and will be removed from the site immediately.