daily technical outlook by acfx.com

[kartik]

March 22th, 2012
Currencies

• EUR/USD rose up and down on good economic news on both sides of the Atlantic. With positive news from Germany, where the RWI economic institute raised it projection for growth, coupled with a strong bond auction of EFSF paper. The euro opened the day at 1.3224 and moved to a high of 1.3285 but settled in at a drop to 1.3191 after the housing report in the US although it was below forecast, it had a positive lining.


• USD/CAD is ranging around 0.9925 in mid-day trading. The USD has picked up momentum against all of its trading major currencies. Optimism of the economy was the theme of the day as Tim Geithner and Ben Bernanke testified in front of US Lawmakers.


March 22th, 2012
Commodities

Oil fell as much as 0.9 % after France said that industrialized nations are considering releasing strategic crude stockpiles to counter rising prices. Crude prices have advanced this year on concern sanctions aimed at halting Iran’s nuclear program will disrupt oil exports.

Brent oil fell 0.4 % to $123.69 a barrel while U.S. Crude futures eased 0.7 % to $106.52 a barrel. Copper was hit by concerns about weak demand from China, falling 0.9 % to $8,381.

Gold earlier climbed alongside equities as China lowered reserve requirements for 379 branches of Agricultural Bank of China Ltd., the nation’s 3rd biggest lender by market value, expanding a trial that had cut requirements for 563 branches

Gold may decline after a report showed that China’s manufacturing may contract for a 5th straight month in March, hurting the outlook for commodities.

Spot gold little changed at $1,649.82 an ounce at noon in Asian market, paring a 0.4 % advance. The preliminary 48.1 reading of the HSBC Holdings Plc and Markit Economics index today is a 4-month low, and compares with a final 49.6 in February