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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Month end flows to dominate as US markets re open

Article By: ,  Financial Analyst
October 31, 2012 9:00 AM

The press is full of pictures of the havoc hurricane  Sandy has caused. Investors are on the side lines as they await how the equity markets will open in New York after two days of a forced close. Month-end flows however might come into play as the day progresses in the FX world.

The AUD received a further boost in Asian following the release of the September building approvals which came in much better than expected. The month on month number printed 7.8% versus an expected 6.4%. The lifestyle currency fell just shy of the 1.0400 level with technical resistance seen in the 1.0400-20 region as the next risk event for Australia is likely to come from China tomorrow in the form of the official manufacturing PMI data.

The euro has rallied 50 points in early European trading on reserve data from the Swiss National Bank that has shown their holdings in the single currency at the end of Q3 have dropped to 48% from 60% in Q2 thus showing the diversification operation they have conducted in supporting EUR/CHF at 1.2000 is largely finished.

As I mentioned above I believe the main driver for FX markets today will be month-end rebalancing with the Chicago PMI and new mortgage approvals the US data releases.

 


EUR/USD

Supports 1.2930-1.2875-1.2835 | Resistance 1.3020-1.3080-1.3175


USD/JPY

Supports 79.30-78.80-78.45 | Resistance 80.00-80.15-80.65


GBP/USD

Supports 1.6025-1.6000-1.5975 | Resistance 1.6145-1.6185-1.6225

 

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