Forex News from InstaForex

[IFX Gertrude]

Higher Open Tipped For Malaysia Stock Market



The Malaysia stock market has tracked higher in back-to-back sessions, collecting more than 7 points or 0.4 percent along the way. The Kuala Lumpur Composite Index settled just beneath the 1,680-point plateau, and the market may extend its gains on Friday.

The global forecast for the Asian markets is upbeat thanks to solid earnings news and a rebound in the price of crude oil. The European and U.S. markets were up, and the Asian bourses figure to follow suit.

The KLCI finished modestly higher on Thursday following gains from the financial shares and plantations.

For the day, the index gained 5.77 points or 0.34 percent to finish at the daily high of 1,678.80 after trading as low as 1,670.63. Volume was 1.85 billion shares worth 1.66 billion ringgit.

Among the actives, MISC, Sime Darby, CIMB Group, Maybank, Public Bank, Aeon Credit and RCE Capital all finished higher.

The lead from Wall Street is positive as stocks moved higher on Thursday as the major averages reached new record closing highs.

The Dow added 117.86 points or 0.6 percent to 18,613.52, while the NASDAQ rose 23.81 points or 0.5 percent to 5,228.40 and the S&P 500 climbed 10.30 points or 0.5 percent to 2,185.79.

Stocks got an early lift from the retail sector after solid earnings news from Macy's (M), Kohl's (KSS) and Chinese e-commerce giant Alibaba (BABA).

Additional support followed a rebound in the price of crude oil, which came after Saudi Arabia's Energy Minister said oil producing nations may discuss possible action to stabilize the market.

In economic news, the Labor Department reported that initial jobless claims edged slightly lower in the week ended August 6 - as well as an unexpected uptick in import prices in July.

Closer to home, Malaysia will release Q2 figures for GDP and current account later today. In the previous three months, GDP was up 1.0 percent on quarter and 4.2 percent on year, while the current account surplus was 5.04 billion ringgit.

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[IFX Gertrude]

Wall St. Lenders Ask Fed Five Years Extension of Conformance Period for Volcker Rule



According to sources, large Wall Street banks are requesting five more years of grace period from the U.S. Federal Reserve to comply with the Volcker rule, a financial reform regulation. The additional grace period comes after three one-year extensions and is set to begin in 2017 and end in 2022.

The extension would give them more time to sell-off fund investments that are hard to sell and will be deemed illegal by the law. Banks can ask for additional five-year extension to depart with illiquid funds under the law on Volcker rule implementation.

Banks asking for the extension includes Morgan Stanley, JPMorgan, Goldman Sachs and other banks.

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[IFX Gertrude]

New Zealand Services Sector Slows In July



The services sector in New Zealand continued to expand in July, albeit at a slower pace, the latest survey from Business NZ revealed on Monday with a Performance of Services Index score of 54.2.

That's down from the downwardly revised 56.4 (originally 56.7).

It remains well above the boom-or-bust line of 50 that separates expansion from contraction.

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[IFX Gertrude]

Oil Prices Edge Up on Potential OPEC Production Freezes



Oil prices climbed on Monday on growing speculation that OPEC will take steps to prop up prices in the oversupplied oil market.

Brent crude oil futures traded at $47.13 per barrel, up 16 from their last close while U.S. W.T.I. crude futures climbed by 18 cents at $44.67 a barrel.

Oil prices advanced on heightening speculation of possible freezes in oil production by OPEC members as Saudi Arabia indicated that it is set to talk about steadying the markets at the informal OPEC meeting on September.

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[IFX Gertrude]

Australia New Motor Vehicle Sales Slip 1.3% In July



The total number of new motor vehicle sales in Australia was down a seasonally adjusted 1.3 percent on month in July, the Australian Bureau of Statistics said on Tuesday, coming in at 98,062.

That follows the upwardly revised 3.5 percent increase in June (originally 3.1 percent).

Individually, sales for passenger vehicles added 0.4 percent on month and sales for other vehicles fell 0.4 percent. Sales for sports utility vehicles were flat.

On a yearly basis, new motor vehicle sales were up 1.6 percent after climbing an upwardly revised 2.3 percent in the previous month (originally 2.1 percent).

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[IFX Gertrude]

Gold Increases Due to Weak Dollar and Economic Data from Japan



Gold prices increased as the weak U.S. dollar and the poor economic data from Asia aided in reversing early losses. Gold for December delivery closed by 0.3 percent with $1,347.50 per troy ounce on the Comex division of the New York Mercantile Exchange.

The data which has shown that Japan's economy has stalled during the second quarter by expanding by an annualized 0.2 percent also supported the precious metal according to ETF Securities' commodities strategist Nitesh Shah. Gold is seen as a haven from currency weakness and inflation and so loose monetary policy will likely increase the demand for the precious metal.

Gold had momentarily increased above $1,360 on Friday following the reporting of the weak U.S. retail sales figures, and had settled lower.

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[IFX Gertrude]

Australia Jobless Rate Falls To 5.7% In July



The unemployment rate in Australia was a seasonally adjusted 5.7 percent in July, the Australian Bureau of Statistics said on Thursday.

That beat forecasts for 5.8 percent, which would have been unchanged from the June reading.

The Australian economy added 26,200 jobs in July, blowing past expectations for a gain of 10,000 jobs following the increase of 7,900 jobs in the previous month.

The participation rate came in at 64.9 percent - unchanged and in line with expectations.

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[IFX Gertrude]

Several FOMC Policymakers Suggest Interest Rate Hike Needed Soon - Fed Minutes



Federal Reserve officials have kept their choices open during the July policy meeting, as some members expect that an increase in U.S. interest rates is needed again soon. According to the Fed's meeting, the consensus is that further data is needed before making a final decision with some officials expecting that economic conditions would soon justify extracting policy accommodation.

The meeting has shown that officials of the U.S. Central Bank's Federal Open Market Committee were mostly upbeat regarding the U.S. economic outlook as well as the labor market, however several claim that a slowdown in the pace of hiring for the future may argue against a near-term hike. The broader group of policymakers have conveyed their concern regarding low interest rates as it could affect financial stability.

Major U.S. stock averages closed flat, which was slightly higher prior to the Fed minutes' publication while the U.S. dollar reached a session low against the yen at around 100.15 yen. Yields were pushed lower as longer-dated U.S. Treasury prices surged to session highs.

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[IFX Gertrude]

Fxwirepro: Usd/sgd Exhibits Range Bound Movement, Intraday Bias Remains Neutral



USD/SGD is currently trading around 1.3415 marks.
It made intraday high at 1.3419 and low at 1.3383 levels. Intraday bias remains neutral till the time pair holds key resistance at 1.3475 marks.
A daily close below 1.3391 will drag the parity down towards key supports at 1.3347/1.3313/1.3302/ 1.3271 levels. Alternatively, a sustained close above 1.3475 will test key resistances at 1.3537, 1.3638, 1.3799, 1.3836, 1.3851(March 16, 2016 high), 1.4073 (20D EMA) and 1.4132(20D, 30D and 55D EMA crossover).
Important to note here that in a daily chart, 20D, 30D and 55D EMA heads down and confirms the bearish trend. Current upside movement is short term trend correction only.
Positioning is inconclusive at this point, with prices offering no clear cut signal to initiate a long or short trade. We will continue to remain on sidelines for the time being.

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[IFX Gertrude]

Gold Ends Four-Day Winning Streak on Fed Official Comment



Gold prices declined, ending its four-day gain streak while the dollar regained its strength as a hawkish stance from San Francisco Fed President John Williams revived expectations of a U.S. central bank rate increase.

Spot gold lost 0.3% and traded at $1, 348,26 while U.S. gold fell by 0.3% at $1,1353.50. Meanwhile, the index of the dollar versus its major peers gained 0.2% at 94. 296.

Williams indicated his support for a rate hike in his comments on Thursday, stating that waiting too long can have dire consequences for the economy.

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