Market Summary for 17/8/2015

Aug 18, 2015

PBOC kept true to its word of fixing its rate according to the market, setting the rate marginally higher again yesterday and this time, there was no reaction and markets continued to trade normally. With lack of further catalysts, markets settled within their current range, again alternating higher and lower throughout the day with no clear directional conviction. The US dollar closed the day slightly higher alongside a firmer housing market index, reversing earlier losses from unexpectedly poor empire manufacturing numbers. Usd/jpy was unable to sustain itself above 124.5, while eur/usd closed lower around 1.1075. 

Key risk events today: RBA August minutes, UK CPI, US building permits 
Aud/usd and usd/jpy continue to trade with no clear pattern in the centre of their respective ranges, and it would probably be better to stay out of those markets until better prices or more clarity emerges. Eur/usd has been trading lower in something resembling a downtrend over the past few days, but momentum has been declining and could be at an end, with support around 1.106.