MARKET BRIEFING – LONDON OPEN 01.03.2016
The Reserve Bank of Australia held the interest rate unchanged at 2% level, as expected. However, markets price in the probability that at least two cuts within 2016 will take place.
The RBA in its policy statement this morning reiterated that persistently low levels of inflation could be a base for the consequent monetary policy easing. The inflation is expected to be low for the next two years, with very low levels of oil price adding to that pressure.
The Australian job market also remains a concern to the policymakers as the global economic slowdown is affecting the state of the country’s economy. Tomorrow’s quarterly GDP release is expected to add a further light to the country’s outlook.
Australian Dollar rallied higher on the news, recovering from a week low with AUDUSD reaching 0.7162 this morning.
The rest of this trading day will concentrate on Purchasing Managers indices released in UK and US, the leading indicator of the economic health in these countries.
The British Manufacturing PMI figure is released by Markit at 9:30 am London time. Investors awaiting a decline to 52.3 this time, down from 52.9 figure announced in February.
The ISM Manufacturing PMI will be published at 3:00 pm this afternoon, with the US data still expected to remain in contraction zone at 48.2, which is the case since last November. A volatility of the USD pairs should be expected during the time of release.
EURUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1.0960
Target 2: 1.0780
Projected range in ATR’s: 0.0090
Daily control level: 1.0965
GBPUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.4070
Target 2: 1.3760
Projected range in ATR’s: 0.0154
Daily control level: 1.3830
USDJPY
The intraday technical outlook
Trend 1 hour: Down
Target 1: 114.00
Target 2: 111.35
Projected range in ATR’s: 1.33
Daily control level: 114.10
USDCHF
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.0065
Target 2: 0.9895
Projected range in ATR’s: 0.0086
Daily control level: 0.9945
USDCAD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1.3675
Target 2: 1.3400
Projected range in ATR’s: 0.0138
Daily control level: 1.3735
AUDUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 0.7230
Target 2: 0.7050
Projected range in ATR’s: 0.0088
Daily control level: 0.7170
GOLD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1265.00
Target 2: 1211.00
Projected range in ATR’s: 27.18
Daily control level: 1210.00
OIL
The intraday technical outlook
Trend 1 hour: Up
Target 1: 35.80
Target 2: 32.00
Projected range in ATR’s: 1.94
Daily control level: 32.25
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