Tuesday, December 18, 2012

Today Forex Fundamental News Analysis

Overnight Gold Down to 1660 For Fiscal Cliff. Gold is down nearly 2% on Tuesday to its lowest level since August to a level of 1660.80, hit by a massive sell-off and the heightened expectations that the U.S. government will soon reach an agreement to avoid a fiscal crisis next month. Gold scored the biggest daily drop since 2 November. Analysts said gold was supported by rising trendline MA200 day and annual near $ 1.660 per ounce. "If gold can not survive on a key support level, it may be a technical selloff will continue," said Adam Sarhan, CEO of Sarhan Capital.

Easing Expectations Shoot for Asian stocks

Tokyo stocks good perform today (19/12) with the Nikkei perched above the level of 10,000 for the first time since April 4. A weaker yen and rising expectations for monetary easing short-term benefit performance of Japanese stocks. The dollar rose against the yen and rose to Y84.30 compared with Y84.20 late Tuesday in New York - after Japan reported a trade deficit that was almost flat for the month of November. Longest monthly decline since 1980. Data was released one day before the meeting information Bank of Japan. Investors focus on the political implications of the Liberal Democratic Party victory. The majority of economists surveyed by Dow Jones Newswires had predicted that the central bank will implement easing measures at its policy meeting this week.

A weaker yen combined with strong post-election sentiment helped push the Nikkei index to stay above the level of 10,000 for the first time since April 4. The index rose 1.1% to 10,085. Shares construction helped by positive sentiment after Mr. Abe pledged to budget for spending on a large scale. In addition, the stock price after the Nikkei financial performance trim through the level of 10,000. Mitsubishi UFJ Financial Group gains 5.1%, Nomura Holdings rose 4.5%, and Nippon Steel & Sumitomo Metal Corporation rose 4.1%.

Exporters continued to print the gain due to the weakening yen. Toyota Motor rose 2.2% and Canon rose 4.5%. Regional markets are still focused on efforts to issue U.S. fiscal cliff - the package of tax increases and spending cuts that are scheduled to be implemented next year. Yesterday (18/12) President Barack Obama indicated that he wants to compromise on the level of annual income to be taxed higher. S & P / ASX 200 rose 0.2% Australia, responded well after mining iron ore price increase. Rio Tinto rose 0.9% and BHP Billiton rose 0.7%.

Gold mining company, Newcrest Mining fell 2.6% after gold closed at its lowest level in more than three months. Gold prices rebounded in early Asian trading session and has recorded an increase of $ 3.20 at $ 1,674.10 an ounce. Also in Sydney, shares of surf apparel manufacturer Billabong International plunged 10.7%, after the company cut its earnings estimate yearly. Hong Kong's Hang Seng Index rose 0.5%. While Esprit Holdings fell 5.5% after yesterday said the biggest losses in the six months ended December 31 due to the deteriorating operating profit for the period July-September. In the mainland Chinese market, the Shanghai Composite Index rose 0.1%. South Korea's market is closed today for the presidential election.

Aussie Avoid High Level

Although the equity market risk appetite is seen to rise with 1:15% SP500 U.S. rose to a high of only 2 months, selling depress the exchange rate AUD / USD to a weekly low of 1.0513 due to the decline in commodity markets such as gold dropped to -1.61% during the NY market closed . Copper also fell to a low level weekly. Australian data releases showed the MI Leading Index was at its lowest level in 11 months at 0.1%. Valeria Bednarik, chief analyst at Fxstreet.com, explained that according to the hourly chart the movement of the AUD / USD looks bearish and below SMA 20 with indicators being negative territory. If the currency broke through the support level, the Aussie likely to continue weakening to 1.0460, "he added. "The interest sold will be reduced in line with weakening currencies in the 1.0400/30 level, otherwise interest will increase the purchase of currency." Aussie support levels at 1.0505, 1.0460 and 1.0430, while resistance levels at 1.0525, 1.0540 and 1.0590.

Obama Ready Republican Press the "Plan B"

John Boehner, a spokesman for the U.S. Congress from the Republicans proposed a proprosal that might prevent the imposition of a tax increase to the U.S. citizens who have an income of less than $ 1 million in his stride to push Obama. Republicans in the U.S. Congress back in the offensive position against negotiating fiscal cliff Tuesday, giving pressure to perform a backup plan before closing this year in order to avoid a tax increase for citizens with incomes of less than $ 1 million per year. Congress Party Republican proposed any proposal that may be proposals that have been proposed previously. The move, as revealed by a spokesman for the Congress, John Boehner in a conference at the congress, aimed at pressing the Obama position. This will change the position of the White House to the Republicans in the U.S. Congress: the likelihood that the White House would be blamed if the majority of taxpayers subject to the higher tax increase next year.

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