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AUSSIE 3-YEAR TECHS

(Z1) Sell-Off Resumes

RBA

VIEW: CBA Rolls Forward RBA Hike Call

AUSSIE BONDS

CPI Fallout Continues Overnight

ASIA

Coming up in the Asia-Pac session on Thursday:

MARKET INSIGHT
  • In the equity space E-mini S&P futures at all-time highs once again and futures have tested 3900.00. The focus shifts to the psychological 4000.00 handle. The EUROSTOXX50 index is firmer today too. The index has breached 3657.83, Jan 8 high to resume the underlying uptrend. Attention is on 3700.00 and 3798.19. The latter is the 0.764 projection of the Mar - Jul - Oct 2020 price swing
  • In the FX space, USDJPY remains bullish. The focus is on 106.05 next, 1.50 projection of the Jan 6 - 11 rally from the Jan 21 low.
  • The EURUSD break of 1.2000 last week signals scope for weakness towards 1.1945, 23.6% retracement of the Mar - Jan rally and 1.1924, Nov 30 low. We are however monitoring Friday's bullish engulfing candle pattern. This is a concern for bears.
  • EURGBP has cleared 0.8800 and remains bearish. The next support is at 0.8711, May 11, 2020 low.
  • On the commodity front, Gold cleared $1804.7, Jan 18 low last week strengthening a bearish theme. This opens $1764.8, next, Nov 30 low. Oil contracts remain firm. Brent (J1) targets $60.62 next, Jan 29 high (cont). WTI (H1) bulls eye $58.00 next, a round number resistance and $59.06 further out, 1.382 projection of Apr - Aug rally from the Nov 2 low.
  • In the FI space, Bunds (H1) remain heavy. The focus is on 175.61, 1.236 projection of the Jan 4 - 12 sell-off from the Jan 27 high. Gilts (H1) last week resumed the downtrend from the August 2020 high. Attention is on 131.53, 2.236 projection of the Dec 11 - 24 sell-off from the Jan 4 high. BTPs (H1) Friday probed 152.67, Jan 8 high with the uptrend intact. This opens 153.00, a round number resistance.
MNI London Bureau | +44 203-586-3805 | taso.anastasiou.ext@marketnews.com