Forex News from InstaForex

[IFX Gertrude]

Australia Q2 Current Account Deficit A$15.535 Billion



Australia had a seasonally adjusted current account deficit of A$15.535 billion in the second quarter of 2016, the Australian Bureau of Statistics said on Tuesday.

That beat forecasts for a shortfall of A$20.0 billion following the upwardly revised A$14.9 billion in the previous three months (originally a deficit of A$20.8 billion).

New exports of GDP for the quarter was -0.2 percent - shy of expectations for a flat reading following the 1.1 percent increase in the three months prior.

The balance on goods and services was a surplus of A$10.797 billion, a decrease of A$999 million (8 percent) on the Q1 surplus of A$11.796 billion.

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[IFX Gertrude]

Japanese Bond Yields Edge Back Toward Positive Returns



Yields on the 30-year benchmark government bond were driven higher to their highest level since March by an increased sell-off in long-dated bonds on Monday. Meanwhile, 10-year Japanese government bond moved closer to positive territory once more.

JGB yields have been rising since the Bank of Japan announced it would conduct a comprehensive assessment of its massive and aggressive monetary policy that was adopted in 2013. Yields have also been rising on bets that the central bank will rein its buying of longer-dated government debt. Yields of 30-year Japanese bond rose for the seventh day in a row to a five-month peak of 0.53% on Monday.

Yield on the 10-year Japanese bond, albeit muted, rose for the fourth straight day by 1 basis point to - 0.02% on Monday, rising close to positive yield territory.

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[IFX Gertrude]

Fxwirepro: Usd/jpy Recovery Not Convincing, Holds Above 20-Dma Support, But Bias Still Lower



USD/JPY managed to erase losses from lows of 101.20, but upside seems to be loosing traction.

Likelihood of another BoJ disappointment at the Sept 21 meet is rising, putting upside risk to the near-term path for JPY.

Technicals still paint a bearish picture, indicators point south. The major is managing to hold above 20-DMA support currently at 101.52, but momentum signals have turned, and the RSI is now below 50.
USDJPY is attempting a clear break below the 20-DMA, which then see scope for test of 98.90 (trendline).

Major support levels - 101.52 (20-DMA), 101, 100.75 (Aug 3 low), 101.41 (23.6% Fib), 99.54 (Aug 16 low)

Major resistance levels - 102, 102.12 (Sept 7 high), 102.58 (38.2% Fib), 102.62 (50-DMA) ​

Recommendation: Good to short decisive break below 20-DMA, target: 101/ 100.75/ 99.55/ 99

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[IFX Gertrude]

Wall Street Slightly Changed as Investors Assess U.S. Interest Rate Outlook



U.S. stocks closed slightly changed, however the Nasdaq extended gains, while investors continue to assess the outlook of U.S. interest rates. The Fed has stated in its Beige Book report of anecdotal information that the economy of the U.S. has expanded at a subdued rate during July and August.

The Dow Jones Industrial Average decreased by 0.06 percent, the S&P 500 decreased by 0.02 percent while the Nasdaq Composite gained by 0.15 percent, a record high close. Unsatisfactory predictions from Sprouts Farmers Markets pulled down grocers. Shares of Sprouts dropped by 13.7 percent at $19.68, shares of Whole Foods edged down by 5.3 percent to $29.08 while shares of Kroger fell by 4.1 percent to $31.32. Apple shares increased by 0.6 percent at $108.36. Chipotle Mexican Grill has increased by 5.9 percent.

U.S. airline stocks rose following Delta Air's report that sales trends have improved and Southwest has stated it would slow its rapid growth of flights in 2017. Stocks of Delta increased by 5.6 percent and Southwest rose by 4.7 percent.

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[IFX Gertrude]

Australia Home Loans Slide 4.2% In July



The total number of home loans in Australia was down a seasonally adjusted 4.2 percent on month in July, the Australian Bureau of Statistics said on Friday - standing at 55,010.

That missed forecasts for a decline of 1.5 percent following the 1.2 percent increase in June.

Investment lending added 0.5 percent to A$11.842 billion, slowing from 3.2 percent in the previous month.

The value of loans slipped 3.1 percent to A$19.946 billion after rising 1.8 percent a month earlier.

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[IFX Gertrude]

Gold Declines as Dollar Firms



Gold prices dropped as the U.S. dollar firms while interest rates were left unchanged by the European Central Bank. The ECB's decision started a selling in government bonds and an increase in yields, that has placed pressure on prices of gold, according to BMO Capital Market's Tai Wong.

On the Comex division of the New York Mercantile Exchange, gold for December delivery settled down by 0.6 percent at $1,341.60 per troy ounce. The decline indicated the precious metal's second successive day of losses.

The WSJ Dollar Index increased by 0.3 percent at 86.13.


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[IFX Gertrude]

China Industrial Production Expands 6.3% In August



Industrial production in China climbed 6.3 percent on year in August, the National Bureau of Statistics said on Tuesday - beating forecasts for a gain of 6.2 percent and up from 6.0 percent in July.

On a monthly basis, output expanded 0.5 percent.

The bureau also said that retail sales advanced an annual 10.6 percent - again exceeding expectations for 10.2 percent, which would have been unchanged from the previous month.

Fixed asset investment gained 8.1 percent on year, beating forecasts for 7/9 percent and unchanged from the July reading.

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[IFX Gertrude]

Dollar Declines on Fed Official Brainard’s Comment on September Rate Hike



The U.S. dollar declined against a basket of major currencies following a statement from a Federal Reserve official regarding reduced bets on the central bank's interest rate hike in September which also implied a dovish stance. According to Fed board governor Lael Brainard, the fed should not increase rates too quickly since the current rates are propping up the economy.

The dollar index was previously down by 0.22 percent at 95.126. The index significantly declined after the release of Brainard's comments to a session low of 94.935, which reversed the movement minutes later, however has retraced much of the losses. The September fed funds contract FFU6 increased by 1.0 basis point after Brainard's comments.

The dollar declined against the Japanese currency by 0.83 percent at 101.83 yen. However, it reversed previous gains against various emerging market and commodity currencies following statements from Brainard, which includes the Aussie dollar, Russian rouble, and the Brazilian real. The euro previously increased against the dollar at $1.1235.

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[IFX Gertrude]

Fxwirepro: Usd/sgd Hits Fresh 3-Month High at 1.3685, Bias Remains Bullish



USD/SGD is currently trading around 1.3664 marks.

It made intraday high at 1.3681 and low at 1.3658 levels.

Intraday bias remains bullish till the time pair holds key support at 1.3605 marks.

A sustained close above 1.3660 will test key resistances at 1.3732, 1.3799, 1.3836, 1.3851(March 16, 2016 high), 1.4073 (20D EMA) and 1.4132(20D, 30D and 55D EMA crossover).

On the other side, a daily close below 1.3605 will drag the parity down towards key supports at 1.3538/1.3462/1.3391/1.3347/1.3313/1.3302/ 1.3271 levels.

Important to note here that 20D, 30D and 55D EMA heads up and confirms the bullish trend in a daily chart.

We prefer to go long on USD/SGD only above 1.3685 with stop loss at 1.3605 and target of 1.3799.

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[IFX Gertrude]

U.S. Stocks Decline as Oil Drops



U.S. stocks and oil have declined, which extends the session of volatility which started while investors focused on the central bank. The Dow Jones Industrial Average decreased by 1.4 percent to 18066.75.

The S&P 500 fell by 1.5 percent to 2127.02 while the Nasdaq Composite was down by 1.1 percent to 5155.25. The CBOE Volatility Index surged by 18 percent to 17.85, which is its highest level since June 28. The energy sector of the S&P 500 was down by 2.9 percent, as shares of Chesapeake Energy led declines, slipping by 8.3 percent to $7.38.

Speculations revolving around the possibility of the Federal Reserve increasing interest rates as soon as next week has contributed to the significant selloff in stocks, however concerns appeared to have lessen following three Fed officials who have stated that there was no hurry to move.

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