The first half of Wednesday’s session looks quite calm, in the afternoon we will have a number of important readings, which will be able to move markets. Investors will focus primarily on the results of the ADP report – which is a good prelude to Friday’s publication of NFP and labour market data.
Retail sales in Australia released in the night showed the result for August, the dynamics MoM increased by 0.4% (according to ABS – Australian Bureau of Statistics). This is a better result after a relatively unchanging July. Compared to August last year, this result is quite flimsy – then appreciation was approximately 2.5%.
Morning with PMI
Wednesday in Europe runs mostly under the banner of PMI published by Markit IHS – first will appear before 10:00, the next will be coming in while until 11:00 (then we will also get to know retail sales Eurozone). Analysts expect the euro zone PMI service at 52.00, which would be only cosmetic slide from 52.10 in the previous period.
Real emotions start in the afternoon
More crucial data will appear after 2 PM – afternoon calendar opens Automatic Data Processing, Inc, (ADP) report examining the change in employment in the US labour market. After the August reading of 177,000, in September analysts expect a slight slump to 166,000. ADP is closely watched, because according to many analysts it can estimate NFP indicator which is usually served two days later. Other significant data this afternoon, awaiting attention will be published :
- 2:30 – trade balance in Canada
- 2:30 – The US trade balance
- 3: 45- by Markit PMI services for the US
- 4:00 – PMI Non-Manufacturing by ISM for the US
- 4:30 – according to the EIA crude oil inventories in the US
The situation on the charts
Looking for interesting situation on the currency market and other assets, it is worth paying attention to EURPLN – the cross since closed again above 4.30 today is already testing the level from the other side. It’s worth monitoring the situation, as we can await further weakening of the PLN.
Gold is also very volatile – mainly due to the appreciation of USD. Tuesday’s session brought the strongest movements since the results of British referendum. The last time so bearish single-session we observed in July last year. Price without hesitation defeated lows from last three months, stopping at 61.8% Fibonacci of the May-July’s. To invest in declines will be required re-testing of 1300.00 area from the bottom or breaking the next support 1249.00 and also re-testing the new resistance.