Fundamental Analysis – 07/10/2015

Good Morning,

The Australian Central Bank Governor, Glenn Stevens, showed little concern over the economic slowdown in the region, and even cited improvement in the labor market after leaving rates unchanged at 2.0%. Chinese markets remain closed until Thursday, this calms the global sentiment for a while. Australia AiG Performance of Construction Index declined to 51.9 in September from previous 53.8. Technically, AUDUSD bullish/neutral. AUDUSD is trading at 0.7157 while EURAUD is trading at 1.5734.

The Dow Jones industrial average rose 13.76 points, or 0.08%, to close at 16,790.19. The Securities and Exchange Commission in US will have a heavy hand in the mutual fund industry, potentially adding new regulations that could raise costs for fund companies and setting up liquidity rules that may affect bond-related exchange traded funds. The 500 largest American companies hold more than $2.1 trillion in accumulated profits offshore to avoid U.S. taxes and would collectively owe an estimated $620 billion in U.S. taxes if they repatriated the funds, according to a study released on Tuesday. Weekly Focus: FOMC Minutes and Trade Balance. EURUSD is still some distance to go but should 1.1288 prove to be the high this week, then we would estimate the low to come in at 1.0988 and should 1.1171 prove to be the low this week, then we would estimate the high to come in at 1.1476. USDCHF is trading at 0.9674 while GBPUSD is trading at 1.5224.

European shares paused on Tuesday following strong gains in the previous session, with mixed corporate updates also providing little clear direction for the market. The EURGBP would offer shorting opportunities in the 0.7500 region. EURUSD is trading at 1.1265 while EURGP is trading at 0.7398.

Daily Performances (00.00 am. GMT);

I hope you all have a nice day.

All the figures are as at the writing time.