Posted at 04 October 2023 / Categories Market Roundups
Market Roundup
•U.S. private payrolls growth slows sharply in Sept - ADP
•US Sep S&P Global Composite PMI 50.2, 50.1 forecast,50.2 previous
•US Sep Services PMI 50.1, 50.2 forecast,50.5 previous
•US Sep ISM Non-Manufacturing Business Activity 58.8, 56.5 forecast,57.3 previous
•US Sep ISM Non-Manufacturing New Orders 51.8,57.5 previous
•US Sep ISM Non-Manufacturing Employment 53.4, 54.7 previous
•US Sep ISM Non-Manufacturing Prices 53.6,58.9 previous
•US Aug Factory Orders (MoM) 1.2%, 0.2% forecast,-2.1% previous
•US Aug Durables Excluding Transport (MoM) 0.4%, 0.4% previous
•US Aug Durables Excluding Defense (MoM) -0.7%,-0.7% previous
•US Aug Factory orders ex transportation (MoM) 1.4%, 0.8% previous
•US Sep ISM Non-Manufacturing PMI 58.9, 53.6 forecast,54.5 previous
•US Crude Oil Inventories -2.224M, -0.446M forecast,-2.170M previous
Looking Ahead Economic Data(GMT)
•00:30 Australia Aug Trade Balance 8.725B forecast, 8.039B previous
•00:30 Australia Aug Exports (MoM) -2.0% previous
•00:30 Australia Aug Imports (MoM) 3.0% previous
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro edged higher on Wednesday as dollar pulled back after softer U.S. jobs data. Data on Tuesday showed U.S. job openings rose unexpectedly in August, pointing to a still-tight labour market that could lead the Federal Reserve to raise interest rates next month.However, U.S. private payrolls increased far less than expected in September, data showed on Wednesday, leaving investors waiting for the main non-farm payrolls report on Friday for more clues to the Fed’s rate hike path. The euro rose 0.5% to $1.0515, not that far from Tuesday's low of $1.0448, its weakest since December, triggering talk of a fall back to $1. Immediate resistance can be seen at 1.0518 (5DMA), an upside break can trigger rise towards 1.0546(38.2%fib).On the downside, immediate support is seen at 1.0460 (23.6%fib), a break below could take the pair towards 1.0427(Lower BB).
GBP/USD: The pound rose against the dollar for the first time in almost a week on Wednesday, in line with a retreat in the U.S. currency, and after a survey showed UK business activity was less subdued than initially feared in September. The final reading of S&P Global UK Services Purchasing Managers’ Index (PMI) fell in September to 49.3 from 49.5 in August, further below the 50 threshold for growth.The reading was an eight-month low, but it topped a preliminary reading of 47.2 that shocked investors earlier in September. Sterling was last up 0.4% on the day against the dollar at $1.2123. Immediate resistance can be seen at 1.2151(5DMA), an upside break can trigger rise towards 1.2177 (38.2%fib).On the downside, immediate support is seen at 1.2066 (23.6%fib), a break below could take the pair towards 1.2033(Lower BB).
USD/CAD: The Canadian dollar weakened to a six-month low against its U.S. counterpart on Wednesday as a sharp drop in the price of oil weighed on commodity-linked currencies.The loonie was trading 0.3% lower at 1.3750 to the greenback, or 72.73 U.S. cents, after touching its weakest intraday level since March 24 at 1.3779.Of some relief for the currency was a steadying in global bond yields after a sharp spike in recent days that rattled investors. U.S. crude oil futures settled down 5.6% at $84.22 a barrel following reports that Russia may lift its diesel ban in coming days and U.S. government data that indicated weak demand for gasoline.Canadian employment data for September, due on Friday, could offer clues on the strength of the domestic economy. Economists forecast a 20,000 jobs gain. Immediate resistance can be seen at 1.3780 (23.6%fib), an upside break can trigger rise towards 1.2800(Psychological level).On the downside, immediate support is seen at 1.3685 (5DMA), a break below could take the pair towards 1.3666 (38.2%fib).
USD/JPY: The dollar dipped against yen on Wednesday amid a mixed set of data suggesting that there are pockets of weakness in the world's largest economy, further diminishing the odds of another interest rate hike by the Federal Reserve. The dollar index , which tracks the greenback against six peers, was down 0.3% at 106.69, giving up some of its recent gains, after weaker-than-expected U.S. private payrolls based on the ADP National Employment Report. The index, however, remained within striking distance of a nearly 11-month high of 107.34 reached in the previous session.The dollar did retrace some of its losses after U.S. factory orders gained 1.2% in August, compared with expectations of a 0.2% rise. That more than offset the moderate decline in a U.S. services sector index last month. Strong resistance can be seen at 149.89(23.6%fib) an upside break can trigger rise towards 150.09 (Higher BB).On the downside, immediate support is seen 149.04(5DMA), a break below could take the pair towards 148.18 (38.2%fib).
Equities Recap
European stocks edged down for a third day in a row on Wednesday, driven by declines in commodity-linked stocks and retailer shares, while U.S. and European bond yields paused for breath after hitting multi-year highs.
UK's benchmark FTSE 100 closed down by 0.77 percent, Germany's Dax ended up by 0.10 percent, France’s CAC finished the day down by 0.00 percent.
U.S. stocks ended higher and the Nasdaq gained more than 1% on Wednesday, a day after a sell-off, as the latest economic data showed U.S. private payrolls increased less than expected in September.
Dow Jones closed up by 0.39% percent, S&P 500 closed up by 0.81% percent, Nasdaq settled up by 1.35 % percent.
Commodities Recap
Oil prices tumbled by more than 5% following reports that Russia may lift its diesel ban in coming days and U.S. government data that indicated weak demand for gasoline.
U.S. crude futures fell $5.01 to settle at $84.22 a barrel, while Brent settled down $5.11 at $85.81.
Gold prices crept lower for the eighth consecutive session as elevated Treasury yields amid expectations that the Fed will keep rates higher for longer weighed on investor sentiment.
U.S. gold futures settled 0.4% lower at $1,834.80 an ounce.