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  • Daily FX View: NZD, EUR, GBP Gain As Data Beat Expectations 0 comments
    Nov 6, 2013 6:52 AM

    USD, JPY lag amid stronger data in New Zealand, Germany and U.K., Bloomberg strategist TJ Marta writes.
    • NZD higher vs 19 of 22 peers on strong 3Q labor market report
    - 3Q employment 1.2% q/q vs est. 0.5%; strongest since 2Q 2008
    - NZD/USD +0.4% at 0.8401, continues rebound from 0.8194 Oct. 30 low, due to sharp late-Oct. decline large gap to next resistance levels
    - Resistance 0.8544, Oct. 22 high, 0.8586 Apr. 30 high
    • EUR/USD higher in Asia hours, driven in part by USD/JPY gains as Topix +0.8%, extends gains above 1.3500 on stronger-than-forecast German data
    - German final Oct. svc. PMI beats, 52.9 vs prelim. 52.3
    - German Sept. factory orders 3.3% m/m vs 0.5%; 7.9%y/y pace continues uptrend, fastest since 2011
    - Offsets negative euro area retail sales -0.6%m/m vs est. -0.4%; sales in most countries fell; Spain -2.5%, Portugal -6.2%
    - On daily chart, EUR/USD holds for 4th session above congested support ~1.3450 from Oct., Sept., Nov. lows, Aug. high, uptrend from July
    - ECB meeting tomorrow may disappoint in terms of easing, may allow for rebound toward 1.3711 given large moves lower late last week
    • GBP up vs 17 peers in Asia on higher stocks, U.K. data
    - Ind. prod. for Sept. 0.9%m/m vs est. 0.6%, 2.2%y/y, trending upward to fastest pace since 2011
    - Daily chart shows rally continues, breaching downtrend since Oct. 23; testing 1.6116 Oct. 22 low; subsequent resistance ~1.626 Oct. 1, 23 highs
    • USD/CAD lower overnight, consolidating 1.04-1.05 range
    - Support: 1.0420 Oct. 10 high, 1.0398 Nov. 4 low
    - Resistance: 1.0472 Aug. 27, 28 low, 1.0497 Oct. 30 high
    - Today: Bldg. permits, Sept., est. 6.0%m/m, 08:30
    • NOTE: TJ Marta is an FX strategist who writes for First Word. The observations he makes are his own.

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