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.
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Stuart Cowell
Head Market Analyst
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