SamTrader1
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By, BinaryOptionStrategy..com
Markets
Markets closed lower after a volatile week marked by volatile prices of commodities and currencies, as investors wrestled with the of a worsening European debt crisis and a global economic slowdown.
The Dow Jones Industrial Average fell 42.99 points this week, or 0.34 percent, to close at 12,595.75. On Friday, the blue-chip index sank 100.17 points, or 0.8 percent. The S&P 500 fell 2.43 points this week, or 0.2 percent, to close at 1,337.77. On Friday the S&P fell 10.88 points, or 0.8 percent. The Nasdaq rose 0.9 points or 0.03 percent this week, to close at 2,828.47. On Friday, the tech-heavy index fell 34.57 points, or 1.2 percent.
DJIA
FOREX
The Australian dollar ended the week lower by 1.2% against the greenback as a commodities rout accompanied by a broad based risk sell off weighed on higher-yielding, growth backed assets. The aussie was further hit by a disappointing employment report that showed the continent lost 22K jobs in April, missing calls for a gain of 17K. The news had traders discounting rate hike expectations from the RBA, with Credit Suisse overnight swaps now factoring only an 18% chance of a hike at the next central bank meeting. Markets continue however to price in a 33 basis point hike for the next twelve months. The key economic data to watch for next week will the RBA minutes when investors get a closer look at the central bank’s outlook for interest rates.
Friday’s price action saw the aussie test key support at 1.0560. A break below could see further losses of the AUD-USD , noting subsequent floors at the 38.2% Fibonacci retracement taken from the advance off the 2011 lows at 1.0510, and 1.0450. Looking up, resistance is seen at 1.0680 followed by the 23.6% extension at the 1.0700-handle and 1.0770.
Looking ahead, the aussie will be subject to swings as fears over sovereign debt default in Europe and global inflation concerns keep investors wary of risk assets. Adding to the worries are concerns over a slowdown in China after the central bank raised reserve requirement ratio for the fifth time this year in an effort to address rising inflation.
AUD/USD
COMMODITIES
Oil prices settled higher after trading lower much of the session. Despite the rout in commodities earlier in the week, crude closed 2.54 percent higher at $99.65 a barrel, while in London, Brent crude jumped up 4.31 percent at $113.83. Gold fell 0.88 percent to $1,493.40 on Friday, and silver silver gained 0.6 percent to $35.01.
Oil
EQUITIES
Citigroup fell even after the bank announced it would resinstate its quarterly stock dividend to one cent a share, payable June 17. Yahoo dragged the Nasdaq lower, after Alibaba Group, which is 43 percent owned by Yahoo, restructured Alipay, one of its businesses, without the knowledge of Yahoo or Softbank, another stakeholder. Meanwhile, AIG slumped despite being upgraded to “market perform” from “underperform” at Wells Fargo. AIG is in the process of preparing a secondary stock offering.
Markets
Markets closed lower after a volatile week marked by volatile prices of commodities and currencies, as investors wrestled with the of a worsening European debt crisis and a global economic slowdown.
The Dow Jones Industrial Average fell 42.99 points this week, or 0.34 percent, to close at 12,595.75. On Friday, the blue-chip index sank 100.17 points, or 0.8 percent. The S&P 500 fell 2.43 points this week, or 0.2 percent, to close at 1,337.77. On Friday the S&P fell 10.88 points, or 0.8 percent. The Nasdaq rose 0.9 points or 0.03 percent this week, to close at 2,828.47. On Friday, the tech-heavy index fell 34.57 points, or 1.2 percent.
DJIA
FOREX
The Australian dollar ended the week lower by 1.2% against the greenback as a commodities rout accompanied by a broad based risk sell off weighed on higher-yielding, growth backed assets. The aussie was further hit by a disappointing employment report that showed the continent lost 22K jobs in April, missing calls for a gain of 17K. The news had traders discounting rate hike expectations from the RBA, with Credit Suisse overnight swaps now factoring only an 18% chance of a hike at the next central bank meeting. Markets continue however to price in a 33 basis point hike for the next twelve months. The key economic data to watch for next week will the RBA minutes when investors get a closer look at the central bank’s outlook for interest rates.
Friday’s price action saw the aussie test key support at 1.0560. A break below could see further losses of the AUD-USD , noting subsequent floors at the 38.2% Fibonacci retracement taken from the advance off the 2011 lows at 1.0510, and 1.0450. Looking up, resistance is seen at 1.0680 followed by the 23.6% extension at the 1.0700-handle and 1.0770.
Looking ahead, the aussie will be subject to swings as fears over sovereign debt default in Europe and global inflation concerns keep investors wary of risk assets. Adding to the worries are concerns over a slowdown in China after the central bank raised reserve requirement ratio for the fifth time this year in an effort to address rising inflation.
AUD/USD
COMMODITIES
Oil prices settled higher after trading lower much of the session. Despite the rout in commodities earlier in the week, crude closed 2.54 percent higher at $99.65 a barrel, while in London, Brent crude jumped up 4.31 percent at $113.83. Gold fell 0.88 percent to $1,493.40 on Friday, and silver silver gained 0.6 percent to $35.01.
Oil
EQUITIES
Citigroup fell even after the bank announced it would resinstate its quarterly stock dividend to one cent a share, payable June 17. Yahoo dragged the Nasdaq lower, after Alibaba Group, which is 43 percent owned by Yahoo, restructured Alipay, one of its businesses, without the knowledge of Yahoo or Softbank, another stakeholder. Meanwhile, AIG slumped despite being upgraded to “market perform” from “underperform” at Wells Fargo. AIG is in the process of preparing a secondary stock offering.