News & Analysis

Dow closes above 23,0000; Rio’s profit shock; USDJPY back above 113.00

Oct 19, 2017 | Daily Market Outlook

Key data and releases coming up:

  11:30 AEDT – AUD Employment Change, Unemployment Rate
  13:00 AEDT – CNY GDP, Industrial Production
  19:30 AEDT – GBP Retail Sales
  23:30 AEDT – USD Unemployment Claims

The Dow closed above 23,000 overnight claiming another milestone. Earnings continued to drive the index as it shook off weaker than expected building permit figures. IBM posted its single day since 2009. The Dow surged 160.16 points to close at 23,157. The S&P500 added 1.90 points to close at 2561.26. The chart below shows the road to 23,000 since 1986. The rate increase has accelerated from 2012 till 2017. When looking back at the GFC in 2008/09 it looks dwarfed by the current rally!

Europe had a positive night with all major indices closing higher. The FTSE added 26.70. The DAX closed 47.97 higher. Rio Tinto reported a 3% drop in profits.

The USDJPY was the main mover overnight, adding 74 pips to close above 113.00. Late NY session risk currencies made gains to the USD. The EURUSD and AUDUSD closed off lows. The EURUSD closed higher adding 17 pips. The GBPUSD recovered from early losses to close 16 pips higher. 1.3185 seen as short term support.

Today’s Asian session is news heavy with Australian employment data and Chinese GDP and industrial production to be released.

USDJPY – posted a 74 pips gain overnight taking price back to 113.00. A trend continuation has started, buyers face a test at 113.25 resistance level.

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