AUD/USD slips to the 20-day SMA

"The retail sales number was extremely strong. It justifies the move higher in the Aussie. The Reserve Bank of Australia said this week that there are signs the economy is responding to previous easing of monetary policy and we're clearly seeing that evidence today." 
- TD Securities Inc. (based on Bloomberg)

Pair's Outlook

AUD/USD failed to resist the bearish sentiments and the price dropped sharply. Yesterday the pair was close to a two week high at 1.0497, but today the Aussie slipped through the weekly PP at 1.0435 and was stopped by a 1.0413/1.0402 area, where the 20-day and 100-day SMAs merge, forming the resistance. Further depreciation might extend till the 200-day SMA at 1.0388 or even till a 1.0339 level, where the 55-day SMA, monthly PP and weekly S2 form the major resistance.

Traders' Sentiment

SWFX market participants were cut their bullish positions, while the price has been decreasing; the sell side contracted by 3% and reached 25%. Pending orders market is oriented to see continuation of an upside move, since 63% are buy orders.

Fri, 05 Apr 2013 05:20:09 GMT

Source: Dukascopy Bank SA

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U.S. service sector growth slowed

The pace of growth in the services sector of the United States economy slowed in March, reaching the lowest level in seven months, as the number of new orders and employment cooled in the biggest part of the economy. According to the Institute for Supply Management's, its non-manufacturing index cooled to 54.4 from a one-year high of 56 in February. Data came slightly below analysts' expectations, which called for a 55.0 reading. Any reading above 50 indicates expansion and the March measure was in line with the gauge's average over the past year. Meantime, the index of manufacturing activity fell to 51.3 in March from 54.2 in February, indicating that the world's largest economy is continuing to expand albeit slower than expected.

"Non-manufacturing firms still seem cautiously optimistic," said Ryan Wang, an economist at HSBC Securities USA Inc. in New York, who projected a March reading of 54.5. "Employment signals are mixed."

Anthony Nieves, chair of the ISM Non-Manufacturing Business Survey Committee, said: "According to the NMI, 15 non-manufacturing industries reported growth in March. The majority of respondents' comments continue to be positive about business conditions," he added.

Thu, 04 Apr 2013 11:41:07 GMT

Source: Dukascopy Bank SA

Image Credit: loop_oh

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Nikkei 225 Index

Japanese shares rallied the most in two months as the Yen depreciated against its major peers after the Bank of Japan made its first policy decision under the leadership of Haruhiko Kuroda, the new governor, to double monthly bond purchasing. The Nikkei 225 Stock Average advanced 2.2% to close at 12,634.54 with a trading volume above its 30-day average.

All ten groups included in the benchmark index edged higher. Banking and real estate stocks led gains on the Nikkei as investors shifted to companies expected to take advantage from appreciation of assets. Sumitomo Realty Development jumped 10.3% for the biggest rise in the gauge to end at 4,165 yen, pacing gains among property developers.

Chugai Pharmaceutical Co followed with a 9.5% increase, contributing to a 4.1% surge in health care group that was the second best-performing sector. Exporters rose as the Yen weakened 2.6% to 95.56 a dollar. The second largest carmaker by market value Honda climbed 3.4% to close at 3,645 yen, while Fujifilm closed 5.7% higher at 1,879 yen.

Thu, 04 Apr 2013 16:11:09 GMT

Source: Dukascopy Bank SA

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