Iron ore collapse has huge implications for the Australian economy - Macquarie Group
The tumbling iron ore price has the Aussie bulls on the edge after Iron ore fell nearly 5% overnight to $90.30 a tonne, down now 23% since the end of July. If commodity prices do not recover, Senior Economist at Macquarie Brian Redican sees A$10 billion of cuts would be needed for the Australian Government to achieve a 2013 surplus.
London session ahead will be a busier one than the days before, with main focus on Italian 10 year sovereign bond auction, with previous auction's yield at 5.96%. Apart from that EU's Barroso speaks at European Forum Alpach in Viena at 09:00 GMT which could bring some headlines. In the EUR data related front Spain delivers CPI at 07:00 GMT, followed 55 minutes later by German unemployment rate, and Italian hourly wages 5 minutes after. Then at the same time Barroso speaks EU and Italy consumer sentiment data will be out. The Jackson Hole symposium finally starts today as well.
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UPCOMING EVENTS :
2012-08-30 07:55 GMT | Germany. Unemployment Change (Aug)
2012-08-30 08:30 GMT | United Kingdom. Mortgage Approvals (Jul)
2012-08-30 09:00 GMT | European Monetary Union. Consumer Confidence (Aug)
2012-08-30 12:30 GMT | United States. Core Personal Consumption Expenditure - Prices Index (YoY) (Jul)
FOREX NEWS :
2012-08-30 02:52 GMT | EUR/USD still bid above 100-day EMA
2012-08-30 04:30 GMT | GBP/USD steady around 1.5825 ahead of Europe
2012-08-30 00:45 GMT | AUD/USD heading towards 200-day MA; Fitch warns on steel, iron ore outlook
2012-08-30 00:18 GMT | USD/JPY still without direction
EURUSD : 1.25353 / 1.25359
DAILY WEEKLY MONTHLY
1.2633 | 1.2604 | 1.2576
1.2513 | 1.2481 | 1.2451
SUMMARY : Up
TREND : Up trend
MA10 : Bullish
MA20 : Bearish
STOCHASTIC : Overbought
MARKET ANALYSIS - Intraday Analysis
EURUSD penetrated below the suggested support level at 1.2543 yesterday and made an attempt to go lower. Today we expect further depreciation as main scenario towards to our targets. However clearance of next resistance at 1.2576 (R1) might open way for the next target attack at 1.2604 (R2). Our next target for short positions locates at 1.2513 (S1), loss here would enable lower supports at 1.2481 (S2) and 1.2451 (S3) in perspective.
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GBPUSD : 1.58229 / 1.58238
DAILY WEEKLY MONTHLY
1.5913 | 1.5887 | 1.5861
1.5796 | 1.5772 | 1.5747
SUMMARY : Up
TREND : Up trend
MA10 : Bearish
MA20 : Bullish
STOCHASTIC : Neutral
MARKET ANALYSIS - Intraday Analysis
The currency traded yesterday without a priority in direction and all our supports and resistance levels remain the same. Today we expect that price will trade within the same price range. Strong signal should be provided prior to the trend development. Potential is seen for break above the 1.5861 level (R1) on the upper side. Possible targets stays at 1.5887 (R2) and 1.5913 (R3) levels. Downside development remains for now limited by next support level at 1.5796 (S1), only clear break here would be a signal of market weakening with next targets at 1.5772 (S2) and 1.5747(S3) in potential.
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USDJPY : 78.605 / 78.610
DAILY WEEKLY MONTHLY
79.21 | 79.02 | 78.83
78.45 | 78.28 | 78.11
SUMMARY : Sideway
TREND : Sideway
MA10 : Bearish
MA20 : Bullish
STOCHASTIC : Oversold
MARKET ANALYSIS - Intraday Analysis
The USDJPY trades in a channel between our next support level at 78.45 (S1) and resistance at 78.83 (R1). A break in either direction will determine the trading bias for the medium term. In such situation we suggest to wait for a clear directional signal prior taking any positions. Bake above the resistance level at 78.83 (R1) would suggest next targets at 79.02 (R2) and 79.21 (R3) in potential. On the other side, loss of 78.45 (S1) would enable targets at 78.28 (S2) and 78.11 (S3).
Source: FX Central Clearing Ltd, (http://www.fxcc.com)