|By Marketwired .||
|January 29, 2014 12:18 AM EST||
SINGAPORE, SINGAPORE -- (Marketwired) -- 01/29/14 -- In FXPRIMUS' Market Brief of The Week for 27 January, the brokerage firm's Senior Economist, Jimmy Zhu, discusses how the Chinese economy and next Federal Open Market Committee meeting may influence the market.
Weak Chinese Economy and Coming Federal Open Market Committee (FOMC) Meeting Could Threaten the Value of Aussie Dollar Again
Aussie traded below 0.87 last Friday afternoon against the Greenback, after the rising credit risk appeared in shadow banking. More regulations may arrive as Chinese government may carry its best effort to avoid default. We have been hearing some relative regulation aiming at the shadow banking sector, but none of these were officially confirmed by the China Banking Regulatory Commission (CBRC). However we believe the recent WPM's case under mining was in CBRC's radar.
Conflicts are everywhere on how to deal with shadow banking in China. We put aside whether the government has enough power to crack down those activities even though we know there are many challenges. If the size of shadow banking decelerated, where is the growth coming from? The recovery of the western economies at this stage is still not strong enough to lift Chinese overseas shipping activities, based on the past six months reading of Chinese exports growth. We have to admit that most of the recovery in western economies is due to the monetary stimulus, benefiting the financial market more than main streets. In other words, demand remains soft. If exports can't help much, the Chinese economy will not grow to a satisfactory level in 2014 given much less local consumption.
China's potential shadow banking concerns not only drags the Aussie dollar, but negatively affects global sentiment as well. Weak manufacturing data in China could reflect subdued global demand. Last Friday, U.S. equities heavily sold off ahead of the key FOMC meeting this week. Dow index was down more than 300 points, booking the worst week since 2012 by losing 579 points, or 3.5%. Lack of fresh catalysts is the main reason triggering price pullbacks, instead of a crisis. Investors are paying full attention to how the Federal Reserve (Fed) elaborates the December payroll data, and whether they would postpone the "January tapering" until economic data returns to expectations.
Here are our expectations on how the market could react according to the FOMC meeting's decision under a few scenarios,
1. If Fed continues to taper USD 10 billion, we could see equities rebound from the recent selling off, and Greenback would gain momentum as well. 2. If Fed decides to "hold on" first, market could continue to sell off U.S. equities in near term, and Greenback shall tumble as well.
USDJPY - Long When Price Rebounds to 101.90
Recent USDJPY rallied mainly reflected traders' mood to seek safe haven currencies such as "JPY" and "CHF", as both of these two rallied against most of the G10 currencies. We seldom experienced this kind of scenario last year due to sound global economic recovery.
However we remain our view that the recent USDJPY slump may offer investors an opportunity to buy the bottom pair, mainly due to,
1. Seeking safe havens last week due to no fresh catalysts, instead of a crisis. 2. Fed is likely to continue to taper next week, which is positive for the Greenback. (If they don't, we may consider adjusting our strategy.) 3. Bank of Japan may act as early as April to counter domestic tax increment.
Based on the H4 chart, the level of 101.90 could be the next support for USDJPY. We would go long if its price reaches this level.
Entry Price - 101.90 Stop Loss - 101.40 1st Target Price - 102.40 2nd Target price - 102.90
FXPRIMUS offers retail traders a level of trade execution, service quality and fund safety that are normally reserved only for the largest investors. Serving traders in 205 countries across 6 continents FXPRIMUS combines an unmatched level of fund safety with regular independent audits of company financials and Straight Through Processing, top notch execution with tight spreads, prompt and responsive customer support, ISO 27001 certification in Information Security, ISO 9001:2008 certification in Quality Management and an industry-leading trader toolset that includes free access to powerful trader tools. FXPRIMUS truly is The Safest Place To Trade.
In today's uber-connected, consumer-centric, cloud-enabled, insights-driven, multi-device, global world, the focus of solutions has shifted from the product that is sold to the person who is buying the product or service. Enterprises have rebranded their business around the consumers of their products. The buyer is the person and the focus is not on the offering. The person is connected through multiple devices, wearables, at home, on the road, and in multiple locations, sometimes simultaneously...
Oct. 27, 2016 10:30 PM EDT Reads: 3,830
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, will discuss why and how ReadyTalk diverted from healthy revenue an...
Oct. 27, 2016 10:30 PM EDT Reads: 3,075
SYS-CON Events announced today that Transparent Cloud Computing (T-Cloud) Consortium will exhibit at the 19th International Cloud Expo®, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The Transparent Cloud Computing Consortium (T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data proces...
Oct. 27, 2016 10:30 PM EDT Reads: 1,498
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
Oct. 27, 2016 10:30 PM EDT Reads: 9,784
Intelligent machines are here. Robots, self-driving cars, drones, bots and many IoT devices are becoming smarter with Machine Learning. In her session at @ThingsExpo, Sudha Jamthe, CEO of IoTDisruptions.com, will discuss the next wave of business disruption at the junction of IoT and AI, impacting many industries and set to change our lives, work and world as we know it.
Oct. 27, 2016 10:30 PM EDT Reads: 530
Established in 1998, Calsoft is a leading software product engineering Services Company specializing in Storage, Networking, Virtualization and Cloud business verticals. Calsoft provides End-to-End Product Development, Quality Assurance Sustenance, Solution Engineering and Professional Services expertise to assist customers in achieving their product development and business goals. The company's deep domain knowledge of Storage, Virtualization, Networking and Cloud verticals helps in delivering ...
Oct. 27, 2016 10:15 PM EDT Reads: 1,156
In the 21st century, security on the Internet has become one of the most important issues. We hear more and more about cyber-attacks on the websites of large corporations, banks and even small businesses. When online we’re concerned not only for our own safety but also our privacy. We have to know that hackers usually start their preparation by investigating the private information of admins – the habits, interests, visited websites and so on. On the other hand, our own security is in danger bec...
Oct. 27, 2016 10:15 PM EDT Reads: 668
The Internet of Things (IoT), in all its myriad manifestations, has great potential. Much of that potential comes from the evolving data management and analytic (DMA) technologies and processes that allow us to gain insight from all of the IoT data that can be generated and gathered. This potential may never be met as those data sets are tied to specific industry verticals and single markets, with no clear way to use IoT data and sensor analytics to fulfill the hype being given the IoT today.
Oct. 27, 2016 10:00 PM EDT Reads: 2,908
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
Oct. 27, 2016 10:00 PM EDT Reads: 2,094
OnProcess Technology has announced it will be a featured speaker at @ThingsExpo, taking place November 1 - 3, 2016, in Santa Clara, California. Dan Gettens, OnProcess’ Chief Analytics Officer, will discuss how Internet of Things (IoT) data can be leveraged to predict product failures, improve uptime and slash costly inventory stock. @ThingsExpo is an annual gathering of IoT and cloud developers, practitioners and thought-leaders who exchange ideas and insights on topics ranging from Big Data in...
Oct. 27, 2016 09:45 PM EDT Reads: 520
Enterprises have been using both Big Data and virtualization for years. Until recently, however, most enterprises have not combined the two. Big Data's demands for higher levels of performance, the ability to control quality-of-service (QoS), and the ability to adhere to SLAs have kept it on bare metal, apart from the modern data center cloud. With recent technology innovations, we've seen the advantages of bare metal erode to such a degree that the enhanced flexibility and reduced costs that cl...
Oct. 27, 2016 09:45 PM EDT Reads: 617
As companies adopt the cloud-to-streamline workflow, deployment hasn’t been very seamless because of IT concerns surrounding security risks. The cloud offers many benefits, but protecting and securing information can be tricky across multiple cloud providers and remains IT’s overall responsibility. In his session at 19th Cloud Expo, Simon Bain, CEO of SearchYourCloud, will address security compliance issues associated with cloud applications and how document-level encryption is critical for sup...
Oct. 27, 2016 09:15 PM EDT Reads: 355
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
Oct. 27, 2016 09:00 PM EDT Reads: 3,689
SYS-CON Events announced today that Impiger Technologies will exhibit in Booth #109 at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Impiger Technologies is a world-class, enterprise software product engineering company specializing in Mobile Application Development, Cloud Applications, Microsoft Technology Solutions, Web Technology and Telecom Services. Impiger Technologies helps enterprises improve busi...
Oct. 27, 2016 08:45 PM EDT Reads: 301
SYS-CON Events announced today that Enzu will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their online busine...
Oct. 27, 2016 07:45 PM EDT Reads: 1,462