RBA raised rates as expected by 25bp & signaled more to come – AUD rallied, USD holds at recent 1-mth highs & Yields remain elevated too. US Stocks closed lower but Asian markets & European FUTS are higher. Google announced “Bard”, Baidu “Ernie Bot” and MSFT will announce their own AI today – all in response to the ChatGPT phenomenon. North Korea stole between $630m – $1 bln crypto’s in 2022 – UN report.
- The USD Index continued to rally from 8-mth lows last week at 100.65. Third day higher today, trading at 103.35 and the 50-SMA resistance.
- EUR – sank to 1-mth lows to test 1.0700 yesterday, back to 1.0735 now.
- JPY – Rallied to test 133.00 yesterday, following the BOJ rumours, back to 132.00 now.
- GBP – Sterling weakened again to test the psychological and fundamental 1.2000, back to 1.2025 now.
- Stocks – The US markets closed down on Monday (-0.1% to -1.00%) US500 -0.61%, (-25.40) 4111, holding the key 4100. US500 FUTS trade at 4128. Activision, Tyson Foods and GAP all shed over 4.5%. Meme Stocks AMC gained 11.84%, & BBBY gained 92% on a $1bn funding announcement.
- USOil – Futures rallied on Monday, as a Turkish export terminal was taken out of service, Saudi Arabia raised prices in Asia for the first time in 6-mths and a report suggests China will account for 50% of demand in 2023. Trades at $75.25 from $72.20 lows on Monday.
- Gold – Advanced from $1865 lows yesterday to $1875 now.
- BTC – Tested $22.6k lows yesterday and earlier today, before lifting to $22.9k.
Today – Speeches from Fed’s Powell & Barr, ECB’s Schnabel, Kazimir & Knot, BoE’s Cunliffe, BoC’s Macklem, Earnings from Carlsberg, Siemens Energy, BP (record profits) , Centene, DuPont and Royal Caribbean.
Biggest FX Mover @ (07:30 GMT) AUDUSD (+0.80%). Rallied a whole big number from under 0.68500 yesterday to 0.69500 today. MAs aligned higher, MACD histogram & signal line rising & testing 0 line. RSI 56.57 & rising, H1 ATR 0.00140, Daily ATR 1.125.
Click here to access our Economic Calendar
Stuart Cowell
Head Market Analyst
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.