Australian Dollar, AUD/USD, ASX 200, NZD, US Dollar, USD/JPY, EUR/CHF – Talking Points
- The Australian Dollar has wilted within the face of a sturdy US Dollar
- APAC equities have been dusted by threat aversion fever taking maintain
- After a busy week of fee hikes, will USD preserve going north, sending AUD south?
Trade Smarter – Sign up for the DailyFX Newsletter
Receive timely and compelling market commentary from the DailyFX team
Subscribe to Newsletter
The Australian Dollar is underneath strain once more immediately after making a 2-year low yesterday as threat property wrestle within the aftermath of the Fed’s fee hike on Wednesday.
In the aftermath of the Fed’s 75 foundation level hike on Wednesday, Treasury yields leapt larger within the North American session in a single day. This additional boosted the US Dollar, driving AUD/USD decrease. The Kiwi has been caught up in the identical vortex and can be close to a 2-year low.
USD/JPY had a glance underneath 142 early within the Asian session however has steadied again above that stage as markets tackle board the Bank of Japan’s intervention yesterday. It is a Japanese vacation immediately.
Sterling continues to press for contemporary lows regardless of the Bank of England climbing charges by 50 foundation factors yesterday. GBP/USD hasn’t traded at these ranges close to 1.1200 since 1985.
EUR/CHF is inching above 0.9600 on the time of going to print after yesterday’s 75 foundation level carry by the Swiss National Bank.
The VIX index, a measure of volatility on US shares, has steadied close to 27 after spiking over 30 after the Fed’s fee hike. It remains to be a great distance from the excessive of 39 seen initially of the yr.
Crude oil is regular once more to this point immediately with the WTI futures contract close to US$ 83 bbl whereas the Brent contract is a contact beneath US$ 90 bbl. Gold stays vary sure, buying and selling round US$ 1,670 an oz.
Looking forward, after a plenitude of European PMIs, Fed Chair Powell can be making remarks in addition to Vice Chair Brainard and board member Bowman. The ECB’s Nagel and Swiss National Bank’s Jordan will even be crossing the wires.
The full financial calendar will be considered here.
Recommended by Daniel McCarthy
How to Trade AUD/USD
AUD/USD TECHNICAL ANALYSIS
AUD/USD continues to languish close to a 2-year low and it stays inside a descending development channel. The low of 0.6574 was the decrease sure of the channel and it might present help going ahead.
The value is beneath all brief, medium and long run simple moving averages (SMA) and all SMAs are displaying a damaging gradient. This might recommend that bearish momentum may proceed to evolve.
Resistance could be on the break factors of 0.6671, 0.6682 and 0.6699
— Written by Daniel McCarthy, Strategist for DailyFX.com
To contact Daniel, use the feedback part beneath or @DanMcCathyFX on Twitter