Chinese Economic Data continues to disappoint as trade balance widens.
This morning's Chinese Trade Balance is making headlines in all the news. Imports grew 6.3% in June, versus expectations for an 11.3% rise, and below a 12.7% gain in May, according to official data. Export shipments grew 11.3% for the month, ahead of the 9% rise expected but down from May’s 15.3% rise. Markets are all ready registering disappointment. Yesterday, China released a good deal of data with lackluster results.
Also, the Eurogroup issued a statement towards the close of their meeting stating that they were agreeing to an extension of Spain’s budget targets and moving closer to providing financial assistance to Spanish banks, they also noted that they were continuing to move ahead on the ESM and the banking plan introduced on June 29th by the EU Ministers, but otherwise very little occurred. Markets were disappointed. As earning season arrives, Alcoa kicked off with news of a loss which will also weigh heavily on the markets today.
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UPCOMING EVENTS :
2012-07-10 08:30 GMT | UK - Industrial & Manufacturing Production
2012-07-10 12:15 GMT | CAD - Housing Starts s.a (YoY) (Jun)
2012-07-10 14:00 GMT | UK - NIESR GDP Estimate (3M) (Jun)
2012-07-10 23:00 GMT | AUD - RBA Deputy Governor Lowe Speaks
FOREX NEWS :
2012-07-10 04:35 GMT | GBP/USD slips to 1.55; UK data eyed
2012-07-10 04:17 GMT | EUR/USD back to square for the week
2012-07-10 02:03 GMT | China Jun Trade Balance 31.73B
2012-07-10 02:03 GMT | China Imports (YoY) 6.3% in Jun
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EURUSD : 1.22937 / 1.22941
DAILY WEEKLY MONTHLY
1.2392 | 1.2358 | 1.2338
1.2284 | 1.2250 | 1.2230
SUMMARY : Down
TREND : Down trend
MA10 : Bearish
MA20 : Bearish
STOCHASTIC : Overbought
MARKET ANALYSIS - Intraday Analysis
The pair has breached the previous low of 1.2332 and the key supports currently are at 1.2180 (50% of the Fibonacci retracement level for the 0.82 to 1.60 range) then 1.1880 in the near term. RSI-14 momentum indicator is also tending towards the downside and is currently reading 0.33. Supports are at 1.2150 then 1.2080 and resistances are at 1.2392 then 1.2450. - Technicals show that a bearish downside momentum is building.
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GBPUSD : 1.55086 / 1.55096
DAILY WEEKLY MONTHLY
1.5616 | 1.5575 | 1.5552
1.5488 | 1.5447 | 1.5424
SUMMARY : Down
TREND : Down trend
MA10 : Bearish
MA20 : Bearish
STOCHASTIC : Overbought
MARKET ANALYSIS - Intraday Analysis
The pair has breached the trend line support of 1.5540 and closed below it. RSI is reading 0.43 and is tending towards the downside. The charts show a minor pullback can be expected shortly and may test the trend line resistance of 1.5560 and may sell at these levels. At present, the support is at 1.5453, and a breach of this level will see the next support coming in at 1.5360. The near-term scenario will remain weak; if it continues to decline further, then it may test lower levels of 1.5250. Meanwhile, the resistance is evident at 1.5560 then 1.5640. Technicals are bearish look for a breach of the June 28 low 1.5485 leaves 1.5450 as the next key level.
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USDJPY : 79.498 / 79.502
DAILY WEEKLY MONTHLY
80.015 | 79.890 | 79.730
79.445 | 79.315 | 79.155
SUMMARY : Down
TREND : Down trend
MA10 : Bearish
MA20 : Bearish
STOCHASTIC : Neutral
MARKET ANALYSIS - Intraday Analysis
The pair traded sideways to close on a negative note. Although the pair breached the major EMAs (8-day, 21-day and 34-day), it failed to sustain above those levels. RSI has been hovering in the same range of 0.50, and, therefore, is not indicating a clear direction for the pair. In the near term, the yen may trade slightly lower before witnessing some buying pressure at lower levels. Supports are seen at 79.17 then 78.70 while resistances are at 80.13 then 80.90. Technicals are mixed - recent uptrend has slowed, though support remains near 21 DMA (79.59)
Source: FX Central Clearing Ltd, (http://www.fxcc.com)