USD cools from recent highs, Stocks stall their decline after a rout on Monday (NASDAQ -4.29%) Yields held at highs with 10-yr over 3.00%. Gold and Oil both slumped as risk-off rattled markets with central bank tightening and rising inflation fears continued to spook sentiment. Asian markets weaker (Nikkei -0.72%) and European Futures all weaker.
USDIndex tested new at highs at 104.20 yesterday back to 103.60 now.
Equities – USA500 -132 (-3.20%) at 3991, first close below 4k since March 2021. US500FUTS at 4022 now.
Yields moved higher 10-yr closed at 3.079%, holding key 3.00%, level. Trades at 3.054% now
Oil & Gold both had weak & volatile session – USOil tested down to $100.00 before reversing to $102.20 now from opening trades over $109.00. Gold slumped from $1885 zone yesterday to $1850 yesterday and struggles at $1860 now.
Bitcoin crashed through $30.0k pand struggles with $32K now.
FX markets – EURUSD up from 1.0500 to 1.0560, USDJPY holds over 130.00, ay 130.40 and Cable continues to struggle 1.2260 alows were tested yesterday, back to t 1.2515. AUD spiked from 0.7030 to 0.7147.
Overnight RBA’s Lowe: “Further increases in interest rates will be necessary over the months ahead”. (Last rate hike was 2011)
Today German Unemployment, EZ PPI & Unemployment, US Factory Orders and NZ Unemployment, Speech from ECB’s Lagarde. Earnings – AMD, Pfizer, Starbucks, BNP Paribas, Deutsche Post and Uniper. JPY & China closed.
Biggest FX Mover @ (06:30 GMT) AUDCHF (+1.10%) Rallied from RBA surprise. Lows yesterday at 0.6850 to 0.6985 highs (resistance) today. MAs aligned higher, MACD signal line & histogram moving higher, RSI 71, OB but rising, H1 ATR 0.0018, Daily ATR 0.0075.
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