News & Analysis

Catalonia set to announce independence; European shares mixed; Gold’s best two days since September

Oct 9, 2017 | Daily Market Outlook

Major economic data releases for today:

  11:30 AEDT – AUD – NAB Business Confidence
  14:20 AEDT – AUD – RBA Assist Gov Debelle Speaks
  19:30 AEDT – GBP – Manufacturing Production

Quieter trade overnight as key markets had bank holidays. Europe, the main focus, saw a mixed day with the DAX finishing at 20 points higher and the FTSE closing at 14.98 lower. Catalan’s president has announced a gradual independence to be rolled out. Spain’s IBEX35 added 50.50 points taking it back to pre-independence levels.

As for the US Dollar, Trump’s tax reform and interest rates helped the USD index trade firmer overnight, hovering around 10 week highs. The USDJPY posted a 35 pip turn around yesterday as it looked to be breaking lower. AUDUSD lost ground overnight -22 pips whilst GBPUSD and EURUSD finished higher. Gold was one of the best movers overnight closing $7.40 higher, backing up Friday’s $8+ rally. Gold has increased by $15.50 in its last two sessions, its best two days rally since September 22. One of the possible reasons influencing buyers may be the tensions from North Korea.

All main markets are back online today. The ASX200 has started Tuesday lower, opening flat but trading at 4.06 points lower.

GOLD – as discussed yesterday, the minimum price point wasn’t troubled. Apart from a few tests, Gold held its line and continued higher. Price broke its short-term down trend but the longer term still remains intact. Traders should be cautious about new long/short positions at this point.

GBPUSD – added 45 pips and at one stage buyers looked to be aiming for a very strong day. This all started from the green demand zone. The failed low ended up becoming a decent trigger for yesterday’s buying. Sellers have emerged from the red supply zone and price needs to play out now as this may turn price lower. The overall trend remains down. Yesterday’s candle may be setting up a continuation set-up if sellers are able to break 1.3085.

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