Fundamental News: October 7, 2013
Western University’s Richard Ivey School of Business in Canada announced last Friday that Purchasing Managers’ Index increased less then estimated in September. The index climbed to 51.9 (seasonally adjusted), compared to August’s 51.0 reading and a 52.6 forecast. The index has so far steadied above the 50 level after posting a 48.4 reading in July, the first sub-50 level since November.
The United States’ Non-Farm Payroll report was missing on Friday due to the ongoing shutdown of the US government.
This Monday, most banks in Australia are closed in celebration of Labor Day. It is also a light news day with key news absent throughout the Asian session.
In Switzerland, the Swiss National Bank (SNB) reported that Foreign Currency Reserves held relatively steady for the fourth straight month in September, despite the ongoing Franc strength against the US dollar and the Euro. Reserves amounted to CHF432.4 billion ($478 billion).
Later, the lone critical data will come in the form of Building Permits which will be issued by Statistics Canada.
Gold trading last Friday was uneventful as price continues to hover in a very limited range just above the $1,300 level. Bulls might need to go through mounting resistance between $1,350 and $1,420. The near-5 month high posted in late-August ($1,433) is the near-term upside breakout target.
Oil did better than Gold last week after the former’s buyers stood their ground when price reached a three-month low early last week. Price continues to stick around the $103 level, but minor weakness has been seen today. $100-$101 is the key area that will unlock the downside, while a heap of resistance awaits eager bulls starting around $105.50.