Daily FX Report
27 September, 2011
Market Review
The IFO business climate index recorded a decrease of 1.2 points in September (to 107.5). The fall recorded
this month is weaker than the previous month. However, it is the third decrease in a row. The index is now at
its lowest level since June 2010.
Both components have fuelled this decrease. However the current situation index fell by only 0.2 point (to
117.9) and remains high, close to last winter levels. The index fell again in manufacturing sector, but it rose in
construction sector and in wholesaling, where it sharply dropped over the past two months.
The expectations index recorded its seventh decrease in a row (to 98, after 100 in August), and is now around
its level of July 2009. Business outlook slightly improved in wholesaling and in retailing, after having sharply
decreased since the spring onwards. However, the confidence of business managers sharply worsened in the
construction and in the manufacturing sector. Signs of a slowdown in global growth affected business
managers’ confidence, who expected a slower growth in exports.
The IFO survey, as PMI and ZEW surveys, suggests a slower output growth in the coming months. Indeed,
German economy, whose exports account for around 50% of the GDP, should be affected by the slowdown in
global demand.
Technical Study –AUD/USD
AUD/USD has entered a consolidation zone with downside bias, AUD/USD has reached the lowest in this
half year. The MACD is showing a bear signal and RSI is currently oversold. Suggested trade from short side
whenever a rebound is occurred.
Risk Disclosure
1
Foreign currency investments are subject to rate fluctuations which may provide both opportunities and risks. The risk of loss in leveraged foreign exchange trading can be substantial.
You may sustain losses in excess of your initial margin funds. Placing contingent orders, such as “stop-loss” or “stop-limit” orders, will not necessarily limit losses to the intended
amounts. Market conditions may make it impossible to execute such orders. You may be called upon at short notice to deposit additional margin funds. If the required funds are not
provided within the prescribed time, your position may be liquidated. You will remain liable for any resulting deficit in your account. You should therefore carefully consider whether
such trading is suitable in light of your own financial position and investment objectives.
Daily FX Report
27 September, 2011
Source: Bloomberg
Risk Disclosure
2
Foreign currency investments are subject to rate fluctuations which may provide both opportunities and risks. The risk of loss in leveraged foreign exchange trading can be substantial.
You may sustain losses in excess of your initial margin funds. Placing contingent orders, such as “stop-loss” or “stop-limit” orders, will not necessarily limit losses to the intended
amounts. Market conditions may make it impossible to execute such orders. You may be called upon at short notice to deposit additional margin funds. If the required funds are not
provided within the prescribed time, your position may be liquidated. You will remain liable for any resulting deficit in your account. You should therefore carefully consider whether
such trading is suitable in light of your own financial position and investment objectives.
Rates Yesterday
Daily FX Report
27 September, 2011
Pairs Open Day high Day low Close
AUD/USD 0.9777 0.9848 0.9611 0.9822
Investment Strategies Intraday Supports and Resistances
EUR/USD 1.3507 1.3549 1.3361 1.3527
GBP/USD 1.5469 1.5570 1.5431 1.5559 Pairs Support 2 Support 1 Resistance1 Resistance 2
Pairs Strategy Entry Stop Target
NZD/USD 0.7728 0.7807 0.7634 0.7791 AUD/USD 0.9728 0.9776 0.9855 0.9886
EUR/USD OBSERVE --
USD/CAD 1.0276 1.0385 1.0241 1.0254 EUR/GBP 0.8707 0.8721 0.8748 0.8761
USD/CHF 0.9039 0.9142 0.9003 0.9016 EUR/USD 1.3457 1.3487 1.3549 1.3581
USD/JPY 76.50 76.76 76.21 76.33 GBP/USD 1.5443 1.546 1.5494 1.5511
NZD/USD 0.7703 0.7735 0.7787 0.7807
USD/CAD 1.0241 1.0257 1.0298 1.0323
USD/CHF 0.902 0.9042 0.9076 0.9088
USD/JPY 76.4072 76.5314 76.7274 76.7992
Economic Statistics Today
Hong Kong Time Country Economic Statistics Period Survey Prior
2011/09/26 22:00 US New Home Sales AUG 295K 302K
Source: Bloomberg
Risk Disclosure
3
Foreign currency investments are subject to rate fluctuations which may provide both opportunities and risks. The risk of loss in leveraged foreign exchange trading can be substantial.
You may sustain losses in excess of your initial margin funds. Placing contingent orders, such as “stop-loss” or “stop-limit” orders, will not necessarily limit losses to the intended
amounts. Market conditions may make it impossible to execute such orders. You may be called upon at short notice to deposit additional margin funds. If the required funds are not
provided within the prescribed time, your position may be liquidated. You will remain liable for any resulting deficit in your account. You should therefore carefully consider whether
such trading is suitable in light of your own financial position and investment objectives.