Daily Radar is a rundown of today’s key markets to watch. Identify an opportunity and trade it from the Trader Radar watchlist in PureDeal.
Please note, all times are in AEST.
Toll Holdings |
| TOL was hammered yesterday after an unexpected profit warning. The company gave a new EBIT (earnings before interest and taxes) range of $400 to $420 million, implying an 8% to 9% downgrade to the market consensus of $450 million. We suspect the huge share price fall (-15%) in TOL shares yesterday was partly due to general market weakness. The $4.50 region could be a key support zone for TOL, as follow-through selling gets washed out after the open today. We wouldn’t be surprised to see a bounce from this region. |
Spain 35 |
| Another round of Spanish bond auctions is due tonight at 6.30pm, and with yields on 10-year debt having spiralled noticeably higher last night, tonight's auction will be very much at the forefront during the European session, as Germany and France take a public holiday. The Greek impasse and surging Spanish bond yields have conspired to make the IBEX index lose its grip on the 6700 support level, which was the low during the GFC, so if we see a weak bond auction tonight, the ’smack down‘ in Spanish markets could continue. |
AUD/USD |
| The Aussie dollar continued its slide overnight, posting yet another low for the year yesterday afternoon. As yet, we haven't seen the support level at the December low of 0.9861 broken, and with markets starting to look like they are heading into over-sold territory, Aussie dollar bulls will have fingers crossed in the hope that this support holds in the coming sessions. |
USD/CAD |
| The sell-off in risk assets has continued apace in recent sessions, causing the US dollar to break out above the 200-day moving average against the CAD. The pair had previously been range bound since the beginning of February, with 1.0050 being the upper resistance level, but now with the price of Canada's main export (oil) tumbling, we could potentially see the US dollar buying continue. |
US Light Crude |
| Oil continued to slide overnight, plunging to its lowest level since the beginning of November on the back of the highest US oil stockpile print since the 1990's. With safe-haven capital flows pouring into the US dollar while the Greek political situation remains unresolved, this combination of oversupply and an ever-strengthening US dollar could see the price of the black gold continue its downward spiral towards the $90 per barrel mark. |
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