Commodity Weekly Report March 17 2013
18/03/2013 (Borneo Post) - The US Dollar Index (USDX) hit a seven-month high at 83.16 before sliding down on Friday.
The dollar is still considered resilient with strong economic data for US retail sales and industrial production.
Weekly jobless claims were down to 332,000 for the week ended March 9 while core Producer Prices gained 0.2 per cent in February. Japan confirmed Haruhiko Kuroda as the next central bank governor though USD/JPY remains stagnant.
However, traders expected more easing policies within weeks and the yen to continue to slide against dollar.
Gold prices were stagnant last week and traded from 1,575 to 1,600 regions. The market is showing slight bullishness from the US economic recovery but oblivious to the rising dollar.
This week, we expect the yellow metal may begin to decline if the bulls fail to clear above 1,610 resistances.
Downside potential is open to falls if debt virus from euroozne recurs or US housing demands make little improvements.
The support still lies at 1,660 levels should the market fall.
Abandon your short-view if the trend pierces above 1,610 resistances. WTI Crude prices climbed above 92.50 resistances last week and traded near to 94.00 towards Friday’s closing.
This week, we reckon the market will consolidate on stronger sentiment from 92.50 to 95.00 regions if USDX slows down in its bullish trend.
WTI Crude may head up in firm sentiment to narrow the spread with Brent Crude in coming week.
Crude Palm Oil Futures (FCPO) on Bursa Derivatives traded in tight range last week due to weakening sentiment.
The recent plunge in soybean oil has led the weakness in FCPO.
The rollover moved to May contract as new active month on Friday and closed at 2,415.
This week, we foresee the market will stay in same projected range from 2,360 to 2,520 regions.
Disclaimer: This report is written for general information only. No liability by the writers, publisher or any third party involved in the distribution of this work. Dar Wong and Chong HC are the market strategists in APSRI on CPO markets. Wong has 22 years of trading and hedging experiences while HC traded for four years and now coaches institutional customers. They can be reached at www.traderpromaster.com.