US stock markets were unable to maintain recent solid gains and closed Wednesday giving back more than half the gains made on Tuesday.

In Asia this morning, stock markets are trading lower after poor economic data from China and Japan dampened the optimism of the last few days, again heightening concerns over slackening global growth.

In Australia, positive employment data, as 17.4k jobs were added for September versus 5.2k forecast, an increase for the 4th consecutive month. As a result, unemployment fell to 6.2% and the AUDUSD is back trading above 0.7000 perhaps paving the way to a larger rebound.

Early USD strength witnessed yesterday morning was also short lived and quickly fell back to previous levels and remains under pressure.

Gold suffered its biggest daily loss in almost 2 weeks as it plunged as low 1101.13. It has since recovered slightly and is now trading around the 1106.50 mark although it remains in no mans land.

News wise, we have a quiet calendar from mainland EU although watch out for some key news from the UK. At 11:00 GMT we have the BoE rate announcement and votes so will be interesting to see if there is any change in opinion as to a rate increase.

Later in the afternoon we also have Unemployment claims from the US.

Trading quote of the day:

“Markets can remain irrational longer than you can remain solvent.”

– John Maynard Keynes

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EURUSD
Pivot: 1.1185
Likely scenario: Long positions above 1.1185 with targets @ 1.126 & 1.129 in extension.
Alternative scenario: Below 1.1185 look for further downside with 1.113 & 1.109 as targets.
Comment: Technically the RSI is above its neutrality area at 50.
 

GBPUSD
Pivot: 1.532
Likely scenario: Long positions above 1.532 with targets @ 1.541 & 1.544 in extension.
Alternative scenario: Below 1.532 look for further downside with 1.529 & 1.5265 as targets.
Comment: Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.