The S&P Global Manufacturing PMI has risen against expectations. The Dollar Index did fall to levels below 106 yesterday but has managed to bounce back above 106 again while Euro has fallen sharply from 1.07 and could trade within 1.07-1.0550 for a while now. EURJPY has fallen from 160 and could trade lower within 157-160 for a while as USDJPY continues to remain flat below 150 for now with potential to eventually break higher.
USDCNY may continue to trade within 7.2950-7.32. Pound and Aussie may trade within the range of 1.21-1.2350 & 0.63-0.6450 respectively. USDRUB can hold above immediate support at 92.50 and rise towards 94-96 but we may have to allow for a fall to 90 in the medium term on a break below 92.50. USDINR may trade within 83.00-83.30 with decent support in the 82.80-83.00 region. EURINR can trade within 87.50-89.
The US Treasury yields and German yields have fallen but could soon bounce from near term supports. The 10Yr and 5Yr GoI can oscillate in a narrow range for some time but has immediate supports below current levels which has potential to produce a decent rise.
Dow Jones has bounced back as expected but has to rise past 33400 to reduce the downside pressure. DAX and Nikkei can see a short corrective rise before resuming the fall again. Nifty can test 19100-19000 on the downside. Shanghai has recovered and has scope to rally towards its resistance while above 2900.
Brent and WTI have declined sharply and may come down further while they remain below $89 and $84 respectively. Gold is oscillating within 2000-1960. Silver can remain ranged within 22.50/80-24 for some time. Copper has scope to test its crucial resistance before a fall back can be seen. Natural gas looks bullish for the near term.
