RBA Financial Stability Review: Cautiously upbeat on the economy
According to the RBA Financial Stability Review, Australian households remain well positioned to pay back their debts. Looking at business appetite for debt, the central bank expects it to recover while reaffirming that corporate balance sheets are in good shape. The RBA commented that IMF tests indicate banks are likely to withstand severe shocks, although they remain strong to cope with any potential EZ shock, which they expect is likely to remain core risk to the global financial system. RBA warned that the decrease in profits by banks may promote unwanted riskier lending. RBA is confident that modest employment growth will continue, according to latest survey observations.
Busy day ahead for the London session in the sovereign debt auctions front, with Italy selling zero coupon bonds and the Netherlands up to € 2.5B worth of 20 year bonds, while Spain will try to sell 3 and 6 month bills. Italy's 10 year bond yields have been around 5% for current week while Spain's one have been below 6%, around multi-week lows.
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UPCOMING EVENTS :
2012-09-25 12:30 GMT | Canada. Retail Sales (MoM) (Jul)
2012-09-25 13:00 GMT | European Monetary Union. ECB President Draghi's Speech
2012-09-25 14:00 GMT | United States. Consumer Confidence (Sep)
2012-09-25 17:30 GMT | United States. Treasury's Geithner Speech
FOREX NEWS :
2012-09-25 04:43 GMT | GBP/USD still sideways below 1.6300
2012-09-25 02:31 GMT | AUD/USD snaps higher post China data
2012-09-25 01:26 GMT | Scenarios for EUR/USD to target 1.25 in Q4 - JPMorgan
2012-09-25 00:51 GMT | Has USD/JPY found temporal bottom?
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EURUSD : 1.29362 / 1.29368
DAILY WEEKLY MONTHLY
1.3013 | 1.2984 | 1.2956
1.2923 | 1.2891 | 1.2860
SUMMARY : Up
TREND : Upward penetration
MA10 : Bullish
MA20 : Bullish
STOCHASTIC : Neutral
MARKET ANALYSIS - Intraday Analysis
Technical Summary: EURUSD formed retracement formation yesterday, turning intraday bias to the negative side however market sentiment remains positive on the medium term perspective. ECB President Draghi's Speech In focus today. Main scenario: Further easing might initiate protective orders execution and drive market price below the next support level at 1.2923 (S1). Next expected targets for locates at 1.2891 (S2) and 1.2860 (S3). Alternative scenario: Next resistance level is seen at 1.2956 (R1), clearance here would open way for strengthening towards to next targets at 1.2984 (R2) and 1.3013 (R3).
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GBPUSD : 1.62254 / 1.62266
DAILY WEEKLY MONTHLY
1.6295 | 1.6270 | 1.6242
1.6212 | 1.6185 | 1.6157
SUMMARY : Up
TREND : Upward penetration
MA10 : Bullish
MA20 : Bullish
STOCHASTIC : Neutral
MARKET ANALYSIS - Intraday Analysis
Technical Summary: The pair continues to extend its weakness on the short term perspective. We expect the pair to remain on a gradual downtrend formation today. Main scenario: Our 20 sma at 1.6212 (S1) acts as next support level. Below here opens the way for a return to 1.6185 (S2) price level. Potential is seen to reach final target at 1.6157 (S3) in perspective. Alternative scenario: Risk of upside penetration is seen above the next resistance at 1.6242(R1). Clearance here would suggest next targets at 1.6270 (R2) and 1.6295 (R3) in potential.
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USDJPY : 77.790 / 77.796
DAILY WEEKLY MONTHLY
78.20 | 78.06 | 77.91
77.73 | 77.59 | 77.44
SUMMARY : Down
TREND : Sideway
MA10 : Bearish
MA20 : Bearish
STOCHASTIC : Oversold
MARKET ANALYSIS - Intraday Analysis
Technical Summary: Pair has settled negative bias on the hourly timeframe however pull back formation is possible. Today’s trading session has set up negative sentiment with instrument depreciation to -0.12% from its opening price. Main scenario: If instrument holds its momentum, we expect to see penetration below the next support at 77.73 (S1). In such scenario we suggest our next targets to be placed at 77.59 (S2) and 77.44 (S3). Alternative scenario: Our 20 sma might be considered as dynamic resistance for the instrument. Successful attack to the 77.91 (R1) price level might encourage correction formation with next targets in focus at 78.06 (R2) and 78.20 (R3)
Source: FX Central Clearing Ltd,( ECN Forex Brokers | Forex Converter | Forex Expert Advisors | FXCC )