Daily Market Report - Wednesday, Oct 06, 2021

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The Reserve Bank of New Zealand has raised the cash rate from 0.25 per cent to 0.5 per cent as widely expected. The New Zealand dollar plunged to a fresh session low of 0.6880 after the decision.

“The Committee noted that further removal of monetary policy stimulus is expected over time, with future moves contingent on the medium-term outlook for inflation and employment,” RBNZ said.

EQUITIES

US stock futures retreat from the previous session highs. On Tuesday, Wall Street ended slightly higher supported by better-than-expected US economic data. The US ISM Services PMI edged higher to 61.9, up from 61.7 in August.

OIL

Crude oil prices reversing some gains made in the early session, focus shifts to EIA data. During the Asian session, the API inventory data showed US oil inventories rose by 951,000 barrels last week.

CURRENCIES

In the currency market, the Euro remains under pressure after the weaker-than-expected German factory orders data and dovish comments from European Central Bank President Christine Lagarde.

GOLD

The safe-haven metal trades below $1750 ahead of US ADP employment data. Overall, the momentum remains bearish throughout the European session.

Economic Outlook

On the data front, German factory orders plunged 7.7% in August of 2021 compared to market forecasts of a 2.1% fall. On the other hand, the Eurozone retail sales reported less than expected.

Moving ahead today, the important events to watch:

US – ADP employment report: GMT – 12.15

US – EIA crude inventories: GMT – 14.30

Coronavirus update:

Worldwide, more than 235 million people have been confirmed infected and more than 4.8 million have died. The United States has confirmed over 43.8 million cases and has had more than 700,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

Dollar Index:
The US dollar Index trades steady above 94.30. If the bullish momentum continues the next upside levels to watch 94.50 and 94.70.

DXY


The important levels to watch for today: Support- 94.10 and 93.90 Resistance- 94.50 and 94.70.



GOLD: The yellow metal trades below $1750, any break below $1746 the next downside side level to watch is $1735/30. On the upper side, the immediate resistance is around $1756 then 1760.

gold neww


The important levels to watch for today: Support- 1744 and 1735 Resistance- 1756 and 1760.

Quote of the day- “The stock market is a battlefield. Always remember to survive in the game first. Only those that survive the battle can enjoy the spoils of the war.” – Benjamin Lee.

Read more- https://gulfbrokers.com/en/daily-market-report-382
 
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