In an interview with Bloomberg John McDermott, assistant governor of the Reserve Bank of New Zealand noted that the New Zealand Dollar ‘does need to adjust down’ against its US counterpart. It did and promptly lost 1 per cent of its value. This followed a central bank meeting this morning where it was agreed that the key Cash Rate should remain at the current record low 1.75 per cent.
Today’s monthly report by the Royal Institution of Chartered Surveyors saw July’s house price balance drop to plus 1 from plus 6 in June, the lowest reading since March 2013. The number of properties offered for sale dropped for a 17th consecutive month and most buyers paid less than the owner’s original asking price.
DAX 30
Still consolidating above 12085 so that momentum is not as yet clearly negative.
SHORT TERM TRADER: Small short at 12225; stop above 12355. Target 11550.
POSITION TAKER: Short at 12175; stop above 12415. Target 11500.
FTSE 100
The commodity channel indicator turned down yesterday adding weight to our view that we may have found yet another interim high.
SHORT TERM TRADER: Small short at 7509; stop above 7600. First target 7350.
POSITION TAKER: Square.
S&P 500
Yesterday’s hanging man following Tuesday’s shooting star underline the instability in this index currently. Note too that momentum might be about to turn bearish.
SHORT TERM TRADER: Short at 2468; stop above 2500. First target 2430.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Clinging rather unconvincingly to the 1.3000 area as momentum is bearish.
SHORT TERM TRADER: Square and looking for an interim base to form.
POSITION TAKER: Square.
EURO/US DOLLAR
Holding up better than expected with a little dragonfly doji yesterday.
SHORT TERM TRADER: Long at 1.1740; stop below 1.1700. Target 1.2150.
POSITION TAKER: Square.
GOLD
Stalling against trend line resistance but the commodity channel index has not yet turned down.
SHORT TERM TRADER: Tiny short at 1266; stop above 1280. Target 1220.
POSITION TAKER: Square.
