China Adds Clarity to Potential Exchange Rate Flexibility

09 March 2010 @ 06:04 am EDT

G10 Advancers and Decliners vs USD

  JPY 0.51
AUD -0.08  
CAD -0.12  
CHF -0.20  
EUR -0.21  
NZD -0.22  
DKK -0.35  
NOK -0.35  
SEK -0.44  
GBP -0.62

Global Indexes Current Level % Change
Nikkei 225 Index 10,567.65 - 0.10
Hang Seng Index 21,212.68 + 0.07
Shanghai Index 3,069.14 + 0.52
FTSE futures 5,590.00 + 0.53
DAX futures 5,867.50 - 0.08
SMI Futures 6,858.00 + 0.08
S&P future 1,134.60 - 0.21

World Markets Current Level % Change
Gold 1,122.06 - 0.13
Silver 17.16 - 0.49
VIX 17.79 + 2.12
Crude wti 81.50 - 0.45
USD Index 80.57 + 0.17

Todays Calender Estimates Previous Country / GMT
CPI, % m/m (y/y) 0.2 (1.0) -0.1 (1.0) CHF / 08.15
CPI (% y/y) -- 0.7 CZK / 09.00
Trade balance, £ bn -- -7.3 GBP / 09.30
NFIB small business optimism index -- 89.3 USD / 12.30
Chicago Fed President Evans (FOMC non-voter) speak -- -- USD / 14.30
CPI (% m/m) 0.51 1.09 MXN / 16.00
RBA Deputy Governor Lowe speaks in Sydney -- -- AUD / 22.00

Currency Tech

EURUSD

R 2: 1.3800

R 1: 1.3735

CURRENT: 1.3606

S 1: 1.3444

S 2: 1.3425

USDJPY

R 2: 91.40

R 1: 90.55

CURRENT: 89.92

S 1: 89.50

S 2: 88.15

GBPUSD

R 2: 1.5350

R 1: 1.5255

CURRENT: 1.4982

S 1: 1.5000

S 2: 1.4857

AUDUSD

R 2: 0.9280

R 1: 0.9170

CURRENT: 0.9098

S 1: 0.8935

S 2: 0.8790

USDCAD

R 2: 1.0530

R 1: 1.0490

CURRENT: 1.0279

S 1: 1.0200

S 2: 1.0100

Market Brief
• Japan Jan leading index rose 2.4 points, coincident index up 2.5 points.

• UK Feb RICS house price balance jumped to 17 vs. 30 exp lowest since Aug "09, prior Jan reading 31.

• UK Feb BRC like-for-like retail sales 2.2% y/y vs.Jan -0.7%, lowest in survey history, while Feb total sales 4.5%

• Australia Feb NAB business conditions index rose to 8, confidence climbed 19, Jan 3, 15.

• Australia Feb job ads 19.1% m/m, highest in yr, newspaper 13.1%, internet 19.6%.

• According to a UK Times poll Labor-Tories are currently neck-neck in marginal seats

• Wall Street Journal states that Moody's sees UK bank bailout wind-down could trigger UK bank ratings cuts.

• In China, SAFEs Yi Gang states that reserves are appropriately diversified in USD, EUR, JPY and emerging ccys and reiterates yesterdays Wen comment on the CNY exchange rate policy.

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