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| Action Insight | Candlesticks Trades | Markets Summary | Action Bias | Top Movers | Daily Technicals |
| Calendar | Elliott Wave Trades | Markets Volatility | Pivot Points | Heat Map | Daily Fundamentals |
| Action Insight Market Overview | Markets Snapshot |
Mid-Day Report: Economic Data Drove Volatility in Holiday Markets, Sterling Up, Aussie DownWhile expectation of stimulus from central banks provided a base for risk markets, economic data triggered some volatility. Sterling was lifted mildly after strong than expected PMI manufacturing data, which rose to 49.5 in August. That compared to consensus of 46.1 and prior month's 45.2. CIMPS chief executive noted that the data showed a "return to status quo of flat growth in a fragile economy. However, the strength is Sterling is not strong enough to push it through 1.5912 resistance against dollar. Other data released in European session saw Eurozone PMI manufacturing revised down to 45.1 in August. Swiss SVME PMI dropped to 46.7 in August while retail sales rose 3.2% yoy in July. US markets are on holiday today and trading would be subdued. |
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| Featured Technical Report | |
AUD/USD Daily OutlookDaily Pivots: (S1) 1.0285; (P) 1.0320; (R1) 1.0361; More... AUD/USD's drops further to as low as 1.0239 so far today and intraday bias remains on the downside for 1.0176 support. Break there will target 0.9968 and below. Nonetheless, as fall from 1.0612 is viewed as a leg inside the medium term consolidation pattern, we'd expect support below 0.9968 to bring rebound. Meanwhile, break of 1.0410 resistance is needed to signal completion of the fall from 1.0612. Otherwise, we'll stay bear term bearish even in case of recovery. |
| Special Reports |
Bernanke Signals QE3 is LikelyThe uplift in market sentiment indicated that investors very much welcomed Fed Chairman Ben Bernanke's speech at the Jackson Hole Symposium. While not signaling any particular action on any particular date, Bernanke's comments sent a strong signal that further quantitative easing is on the way. During his speech, Bernanke defended the use of unconventional easing as "effective" with evidence that balance sheet expansion have supported the economic recovery. While evaluating costs and benefits of quantitative easing, the Chairman stated that costs remained manageable and the Fed would "not rule out the further use of such policies if economic conditions warrant". While the speech appeared to have pushed the timing of QE3 closer, we think the likely timing would be either September or December, instead of October as election approaches. RBA Easing Justified Later In The Year, Though Not In SeptemberWe reiterate our view that the RBA would lower the cash rate by -25 bps in the fourth quarter. While Australia's economy is expected to grow around trend and current monetary policy is appropriate, risks remained to the downside and a significant pickup in the unemployment rate would trigger policymakers to ease further. Meanwhile, market reduced expectations for further RBA rate cut in the next 12 months as the RBA's recent comments signaled no bias for further easing while recent data has shown that the funding conditions have improved in Australia. Australian dollar has dropped to a 1-month low due to concerns over slowdown in China and deterioration in Eurozone's situation. Yet, the RBA would remain caution about the Aussie's outlook.
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Orders and Options Watch | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
US Session: Orders and Options WatchGBP: The British pound jumped briefly to an intra-day high of 1.5906 in London morning in part due to cross-buying in sterling, however, indicated offers from UK clearer at 1.5910 continued to cap cable's upside and combination of offers and stops in good size remain at 1.5920 with more stops placed above 1.5950 and further out at 1.6000 barrier. On the downside, bids from Eastern European and Middle East names are still noted at 1.5850-60 and also at 1.5820-30 with mixture of bids and stops located at 1.5790-00, more stops are placed below 1.5770 as well as 1.5740-50 (sizeable). | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Trade Idea Update: GBP/USD – Buy at 1.5790Although cable has risen again after finding support around the Kijun-Sen and a test of recent high of 1.5912 would be seen, break there is needed to signal an upside break of recent range has taken place and extend recent upmove to 1.5940-50 and possibly towards 1.5970 but price should falter below psychological resistance at 1.6000. If said resistance continue to hold, then further choppy trading within 1.5754-1.5912 range would be seen Trade Idea Update: EUR/USD – Buy at 1.2535Despite Friday’s rally to 1.2637 after breaking previous resistance at 1.2590, the subsequent retreat suggests consolidation below said resistance would take place and pullback to the Ichimoku cloud (now at 1.2534-36) cannot be ruled out but renewed buying interests should emerge there, bring another rise later. Above 1.2600 would suggest pullback has ended and bring retest of 1.2637, break there would confirm recent upmove has resumed for further gain to 1.2650, break would bring headway to 1.2670 Candlesticks Intraday Trade Ideas Update Schedule (GMT): Elliott Wave Daily Trade Ideas Update Schedule (GMT): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fundamental Highlights
Technical Highlights
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