MARKET BRIEFING – LONDON OPEN 24.07.2015
A preliminary estimate of China’s manufacturing activity has declined to 15-month low, which shows the world second biggest economy is undergoing a slowdown.
The Chinese Purchasing Managers index has slid to 48.2, comparing to the final reading of 49.4 in June. The PMI uses 100-point scale, with the numbers below 50 indicating the industry contraction. For China have been a case since December 2014, with only minor exception in February 2015, when the index has reached 50.1.
The rest of the China’s indexes, such as new orders, output and employment have all continued to shrink.
Concerns over the slowed economic growth in China have prompted policymakers to action. Despite of the several attempts by the People’s Bank of China of the interest rates cuts, with the latest at the end of last month, the situation has not improved much still.
“We think that recent policy easing has yet to fully feed through into stronger economic activity and expect policymakers to respond to signs of weakness by stepping up support in order to prevent growth from slipping much further this year,” Julian Evans-Pritchard of Capital Economics said.
Australia, as a result, has seen an immediate decline of its currency, with the Aussie hitting 0.7266 low against the US Dollar this morning, the lowest since 2009. China is Australia largest export market for the commodities.
The general demand for the commodities especially such as oil, metals continues to decline sharply.
Bloomberg commodity index was trading at all times low, reaching 94.07 mark yesterday, comparing to just below 140.00 one year ago.
Gold price plunged lower once again, breaching the multi-year resistance line of 1080.00. Brent Oil at the same time has broken 55.50 resistance level.
EURUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.1102
Target 2: 1.0866
Projected range in ATR’s: 0.0118
Daily control level: 1.1215
GBPUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1.5632
Target 2: 1.5392
Projected range in ATR’s: 0.0120
Daily control level: 1.5670
USDJPY
The intraday technical outlook
Trend 1 hour: Up
Target 1: 124.76
Target 2: 123.07
Projected range in ATR’s: 0.8415
Daily control level: 123.00
USDCHF
The intraday technical outlook
Trend 1 hour: Up
Target 1: 0.9678
Target 2: 0.9494
Projected range in ATR’s: 0.0092
Daily control level: 0.9400
USDCAD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.3135
Target 2: 1.2935
Projected range in ATR’s: 0.0100
Daily control level: 1.2675
AUDUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 0.7442
Target 2: 0.7262
Projected range in ATR’s: 0.0090
Daily control level: 0.7490
GOLD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1106.42
Target 2: 1074.00
Projected range in ATR’s: 16.210
Daily control level: 1160.00
OIL
The intraday technical outlook
Trend 1 hour: Down
Target 1: 57.08
Target 2: 53.98
Projected range in ATR’s: 1.5543
Daily control level: 51.00
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