Fundamental Highlights
Name: Jim Londos
Senior Portfolio Manager
USDindex
• Australian data released earlier today came out basically in-line with expectations Later
Monday, traders will be monitoring the release of the Chicago PMI and the Dallas Fed
Manufacturing Index out of the US.
• AUD/USD presents a bearish tone which support the notion of further weakness, with a break
below 0.9280 signaling further slides for today, and eyeing first 0.9240, where the pair will fill
one of the two weekly opening gaps left in the last month
• The AUD/USD cross is rebounding right along with most of the other risk tells out there – i.e.
stock futures, EUR/USD, EUR/JPY and AUD/JPY. So far, it appears that this may be just a
corrective bounce in risk in general and AUD/USD specifically.
• The AUD/USD cross is rallying modestly off the lows on a general rebound in risk assets
several hours into the new week.
KEY EVENTS:
• Traders will be monitoring the release of the Chicago PMI and the Dallas Fed Manufacturing
Index out of the US.
Fundamental Highlights
• NZD/USD opened the week on bearish gap falling below the 0.8270 zone despite improved
building permits results released in New Zealand.
• NZD/USD traders to focus on geo-politics and US data later Monday
• NZD/USD traders were faced with trading around the release of New Zealand Business
Confidence at 01:00 GMT. Surprisingly – given the tone of things today and the recent trend
in news from New Zealand – the data was better-than-expected.
• The NZD/USD is trading right at the same level as it was prior to the release of the better-
than-expected New Zealand Business Confidence.
KEY EVENTS:
• Later Monday, in addition to government concerns in Italy and the US, NZD/USD traders will
be reacting to Chicago PMI out of the US.
Fundamental Highlights
• GBP/USD opened the week trading strong against the dollar after breaking immediate
resistance at 1.6116 at runaway gap on US government shutdown risk.
• The pair is offered at 1.6162 ahead housing market data in the UK and oscillates between
supports aligned at 1.6116 (September 17th highs), 1.6066 (September 20th highs) ahead
of 1.5976 (September 18th highs) and the resistances set at 1.6163 (September 18th highs),
1.62 (December 17th 2012 highs) followed by 1.6240 (December 20th 2012 lows).
• The pair has climbed .65% on the basis that US yields are down while BoE Governor Carney
suggested that there was “no case” for more QE in the UK, pushing the GBP higher.
KEY EVENTS:
• In the next several hours traders will get to trade off of German retail sales, EU consumer
prices and British mortgage approvals.
Fundamental Highlights
Senior Portfolio Manager
• Australian data released earlier today came out basically in-line with expectations Later
Monday, traders will be monitoring the release of the Chicago PMI and the Dallas Fed
Manufacturing Index out of the US.
• AUD/USD presents a bearish tone which support the notion of further weakness, with a break
below 0.9280 signaling further slides for today, and eyeing first 0.9240, where the pair will fill
one of the two weekly opening gaps left in the last month
• The AUD/USD cross is rebounding right along with most of the other risk tells out there – i.e.
stock futures, EUR/USD, EUR/JPY and AUD/JPY. So far, it appears that this may be just a
corrective bounce in risk in general and AUD/USD specifically.
• The AUD/USD cross is rallying modestly off the lows on a general rebound in risk assets
several hours into the new week.
KEY EVENTS:
• Traders will be monitoring the release of the Chicago PMI and the Dallas Fed Manufacturing
Index out of the US.
Fundamental Highlights
• NZD/USD opened the week on bearish gap falling below the 0.8270 zone despite improved
building permits results released in New Zealand.
• NZD/USD traders to focus on geo-politics and US data later Monday
• NZD/USD traders were faced with trading around the release of New Zealand Business
Confidence at 01:00 GMT. Surprisingly – given the tone of things today and the recent trend
in news from New Zealand – the data was better-than-expected.
• The NZD/USD is trading right at the same level as it was prior to the release of the better-
than-expected New Zealand Business Confidence.
KEY EVENTS:
• Later Monday, in addition to government concerns in Italy and the US, NZD/USD traders will
be reacting to Chicago PMI out of the US.
Fundamental Highlights
• USD/JPY traders are once again starting to give the Yen the edge in the battle of the safety
currencies after a post-gap consolidation.
• USD/JPY traders pushed the cross in different directions for a while following the release of
worse-than-expected Japanese industrial production numbers. In a short while, Japanese
housing data will also be released.
• Due to the US potential government shutdown, high volatility is expected and rumors spread
stating the yen may be the best trade this week as uncertainty will trigger market panic and
rush buying of safe-haven currencies with a dumped dollar.
• Real government concerns in Italy and the last minute posturing going on in the US political
arena have global investors sticking with the Yen as THE safe-haven currency heading into
the new week.
• The USD/JPY has gapped lower on Washington-induced DXY weakness and an appetite for
the perceived safety of the Yen.
KEY EVENTS:
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