The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
The pair continued to rally and pushed through the 1.90 barrier to print a high of 1.919. This level saw some profit taking kick in on the pair and it has now dropped back to consolidate in the 1.90 region. With diverging fundamentals between Australia and the UK, chances are the uptrend will remain intact and we are likely to see traders use the dips as an opportunity to accumulate, particularly in the 1.90 region. Locally today we have NAB business confidence and the CB leading index is due out. Any further signs of pressure for the domestic economy could give the pair some upside in Asia. We also have China industrial profits data due out at 12.30pm AEDT today, which will carry significant weight after the China HSBC manufacturing PMI miss last week. Meanwhile out of the UK we have GDP data today. An above consensus reading could see the pound bid even higher.
The tech giant reported its Q1 earnings today and saw its EPS come in well ahead of consensus. However, Q2 revenue forecasts are a concern and resulted in a sell-off in after-hours trade. This trend could continue in trade later today. Apple shares closed the session at around $550 only to slide to around $505 in after-hours trade. Given the round number psychological support in the $500 region, we could see bargain hunters emerge at this level.
On the other side of the spectrum, earth moving equipment giant CAT reported earnings, which topped estimates. The recovery in the US building industry has seen CAT forecast earnings and revenue for 2014 above estimates. Its share price gapped higher and traded to around $92. Near-term resistance will be in the $93 region where it topped out on January 15.
The supplier of Caterpillar’s equipment will be in focus today after some solid figures from CAT overnight. SVW shares have been struggling and this could be the kicker it needs to get going. Improving prospects for CAT tend to be a positive indicator of things to come for SVW.