Daily Markets Broadcast 2019-10-01

Daily Markets Broadcast

2019-10-01

Wall Street rises on better China data

US indices shrugged off a below-forecast Chicago PMI reading and instead focused on the better data out of China. The RBA is expected to cut rates again to 0.75% at today’s meeting. China celebrates its 70th anniversary today, so tensions in Hong Kong could be heightened after the weekend escalation in protests.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index rallied for the first time in three days yesterday after China’s manufacturing PMI rose to 49.8 in September, the highest reading since April. In contrast, the Chicago PMI slumped to 47.1
  • The 55-day moving average at 26,592 has held on a closing basis since September 5
  • The US ISM purchasing managers index is expected to rise to 50.0 in September from 49.1 the previous month. That would halt five months of slippage to the lowest since 2016.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index looks poised to advance for a fifth consecutive day today after reaching the highest in a week yesterday
  • The 100-day moving average is at 12,132 and has supported prices since September 6. The 55-day moving average is just below at 12,068
  • Final readings for Markit’s PMI readings for Germany and the Euro-zone are due today. Flash estimates were 41.4 and 45.6, respectively.

 

WTICOUSD Daily Chart

Source: OANDA fxTrade

  • Crude oil prices have fallen for the past five days, dropping back to the level before the attacks on the Saudi production facilities took place two weeks ago
  • WTI crude prices closed below the 55-day moving average at $56.05 yesterday for the first time since September 13
  • Weekly oil stockpiles data to September 27 from the American Petroleum Institute are due today. Last week saw an addition of 1.4 million barrels to inventories, the most in six weeks.

 

 

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Andrew Robinson

Andrew Robinson

Senior Market Analyst at MarketPulse
A seasoned professional with more than 30 years’ experience in foreign exchange, interest rates and commodities, Andrew Robinson is a senior market analyst with OANDA, responsible for providing timely and relevant market commentary and live market analysis throughout the Asia-Pacific region. Having previously worked in Europe, since moving to Singapore he worked with several leading institutions including Bloomberg, Saxo Capital Markets and Informa Global Markets, proving FX strategies based on a combination of technical and fundamental analysis as well as market flow information. Andrew began his career as an FX dealer with NatWest and the Royal Bank of Scotland in the UK.