USDIndex sinks once more to 105.00, dragged decrease by falling Yields (10yr -2.88% to 2.54%). US Shares decrease following report July. HSBC +6.5% Boeing +5.96% Pearson +12.66% BBBY +14.77%. Asian markets pressured decrease by Pelosi’s proposed go to to Taiwan and China promising “countermeasures” together with “army actions”. (Dangle Seng -2.68%, Nikkei -1.44%). European FUTS additionally decrease. (-0.6%). Oil tanks underneath $93, Gold spiked to $1780 and BTC down underneath $23k.
RBA raised charges 50bp, as anticipated, (third consecutive month & quickest fee hike cycle since 1994) – BUT cooled ahead steerage – will increase charges in months forward, however “not on a pre-set path” #AUDUSD falls from 0.7030, to 0.6950, #AUDJPY -1.66%.
Biden broadcasts US have killed head of Al-Qaeda, Zawahiri in Kabul drone strike.
- USDIndex weakens additional to check underneath 105.00 now. YEN & CHF outperform once more in Asian session.
- Equities – USA500 closed decrease -11.66pts (-0.28%) (4118), US500FUTS at 4100 now. 4175 stays subsequent key resistance
- Yields 10-year yield dived into shut 2.60%, down once more to 2.54% now.
- Oil – tanked to $93.00 from $101.80 highs on Friday.
- Gold – spiked to $1780 earlier than cooling to $1773 now. Assist at $1770 & $1766.
- Bitcoin additionally weaker trades at $22.8K now, from as excessive as $24.4K.
- FX Markets – EURUSD rallied to check 1.0300 zone, USDJPY dived underneath 131.00 to 130.40 lows. Cable holds over 1.2200 and exams key 1.2260 resistance space.
In a single day – AUD Constructing Approvals higher than anticipated (-0.7% vs. -5.3%), Commodity costs decrease (14.1% vs. 24.3%) UK Home inflation a tick decrease at 0.1% m/m.
Right now – Canadian Manufacturing PMI, New Zealand Unemployment, US JOLTS Report, Speeches from Fed’s Bullard, Evans & Mester. Earnings BP (out – EPS exceed by +26%, income a monster £6.95bn), CAT, UBER, AirBnB, AMD, PayPal, Starbucks, Gilead, Marriott.
Largest FX Mover @ (06:30 GMT) AUDJPY (-1.66%). Dovish RBA and Taiwan tensions hit the important thing most threat delicate pair. Collapses from 92.500 to 90.75 lows. MAs aligned decrease, MACD histogram adverse & falling, RSI 22.5, OS & falling, H1 ATR 0.294, Every day ATR 1.198.
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Stuart Cowell
Head Market Analyst
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