USDIndex slipped under 106.00, yesterday before again recovering to 106.20. US Stocks traded lower all day – dragged down by Semiconductors (NASDAQ -1.19%). MUSK to sell another $6.9 bn worth of TSLA stock (-2.44%). Intel -2.43%, NVDA -3.97%, Roblox -3.17%, OXY +3.95%. Asian markets lower too (Hang Seng -2.45%, Nikkei -0.68%). European FUTS also lower. Yields rose into close +1.16% (10yr 2.797%), Oil has declined back under the $90 handle, Gold sank to $1788 support and BTC has moved back $22.7K area.
Biden announces a $280bn investment in high tech to compete with China; China maintains drills and firing around Taiwan.
- USDIndex tested down to 105.80 but has recovered the 106.00-20 range today ahead of US CPI later. AUD underperformed in Asian session.
- Equities – USA500 closed down -17.59pts (-0.42%) (4122), US500FUTS at 4118 now. 100 MA at 4100.
- Yields 10-year yield rose into close as USD recovered. The 2/10yr. yield curve moved as much as 45bp inverted yesterday. 10yr trades down -0.25% at 2.79% now.
- Oil – rallied to test 200-hr MA at $92.60 before declining to $89.60 now.
- Gold – rallied & spiked to $1800 resistance before declining back to support at $1788 again. 20-day MA now $1761.
- Bitcoin’s surge to $24.2K Monday; declined further today to $22.6 earlier, back to test $23k now.
- FX Markets – EURUSD holds over 1.02000, at 1.0210, USDJPY continues to pivots around 135.00 and Cable does the same around 1.2080, in thin August markets.
Overnight – JPY PPI missed (8.6% vs 9.4%), China CPI & PPI both weaker too (2.7% vs 2.9% & 4.2% vs 6.1%) respectively. German CPI (Final) in line 0.9% m/m & 8.5% y/y.
Today – US CPI, Speeches from BoE’s Pill, Fed’s Evans & Kashkari. Earnings from Disney, Honda, Fox, Aviva, Evonik & E.ON.
Biggest FX Mover @ (06:30 GMT) EURAUD (+0.29%). Continued its bounce from 1.4580 support on Monday after declining from 1.4775 highs on Friday. Testing 1.4700 zone now. MAs aligning higher, MACD histogram now positive & signal line rising, RSI 61.83 & rising, H1 ATR 0.00148, Daily ATR 0.0132.
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Stuart Cowell
Head Market Analyst
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