Saturday, September 26, 2015

Action Insight Weekly Report 9-26-15

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Action Insight Weekly Report Markets Snapshot

Dollar Higher on FedSpeaks as Focus Turns to NFP, Sterling Vulnerable

Dollar strengthened across the board last week as a number of Fed officials, including chair Janet Yellen, reiterated their view that there will be a rate hike by the end of the year. Nonetheless, traders seemed remain rather unconvinced by it yet. As of Friday, fed fund futures were only pricing in 39% chance of a rate hike in December, practically unchanged from a month ago. It's believed that there remains so much uncertainty from now till December. And a number of factors are needed to solidify the rate hike. That would include stability in the financial markets, a string of solid economic data, as well as no more shocks from other parts of the world, including Europe and China. And, the employment data to be released from US this week will be the first test for the greenback.

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Featured Technical Report

AUD/USD Weekly Outlook

AUD/USD dipped to 0.6937 last week but lost momentum ahead of 0.6905 support. Initial bias is turned neutral this week first. Consolidation from 0.6905 could extend with another rise. Above 0.7095 will target 0.7278 resistance and above. But in that case, strong resistance should be seen at 38.2% retracement of 0.8161 to 0.6905 at 0.7385 to complete the consolidation. On the downside, firm break of 0.6905 will bring down trend resumption.

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