Key Points: 1. AUD Outlook: JP Morgan believes that the AUD/USD remains undervalued compared to commodities, rate spreads, and equity performance, hinting at potential convergence towards a higher fair value. However, they caution that the AUD might be most vulnerable...
Economic calendar Asia Thursday, 13 July: China trade data June, higher surplus expected
Trade data from China for June 2023 is the focus on the data agenda for the session ahead. Both exports and imports are expected to show a y/y decline. The data from China has been showing a faltering recovery for the economy. Imports declining is a symptom of weaker...
US stocks close higher for the 3rd consecutive day
US stocks closed higher for the 3rd consecutive day. Softer CPI gave the buyers the go-ahead to push higher. YoY headline CPI moved from 4% to 3%. The core inflation moved from 5.3% to 4.8% (or expected 5.0%)The NASDAQ index led the gains today (the Dow Industrial...
Trade ideas thread – Thursday, 13 July 2023
High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives,...
The NZDUSD breaks higher and gets close to the next key targets
The RBNZ kept rates unchanged when they made their interest-rate decision in the Asian Pacific session. The price of the NZDUSD initially moved to the downside briefly before bouncing back higher. That move was short-lived however as the price and rotated lower into...
EURUSD moves to another new high and extends above target swing area
EURUSD trades to new highsThe EURUSD has continued its move to the upside and trades to yet another new high at 1.11377. That has taken the price above the high of a swing area between 1.1094 and 1.11346. The next upside target comes against swing lows and highs from...
WTI crude oil futures settle at $75.75
Despite a large build in crude oil inventories this week of 5.946 million (expectations were for a build of 0.483 million), the price of WTI crude oil settled up another $0.92 or 1.23% at $75.75. For the week, the price is up 2.57%. A sharply lower dollar is helping...
NASDAQ index extends back toward days highs
NASDAQ index trades back toward highsThe NASDAQ index is leading the way to the upside with a gain currently of 186 points or 1.35%. At session highs the index is up 202.75 points near the start of the trading day. The low price today saw the index up 81.43 points. So...
Highlights of the Fed’s Beige Book: Overall economic activity increases slightly since May
Overall Economic Activity:Overall economic activity experienced a slight increase since late May.Five districts reported slight/modest growth, five saw no change, and two noted slight/modest declines.Consumer spending patterns were mixed, with growth seen in services...
The AUDUSD story changed today with buyers taking control. Want to hear the new chapter?
The AUDUSD had a volatile up-and-down price action in the Asian/Pacific session. The price action initially saw the pair extend above its 100 and 200-day moving averages, the top of an up-and-down "red box", and the 38.2% retracement of the move down from the June 16...
Struct Finance Launches Tranche-based BTC.B-USDC Vaults
In its ongoing journey to reshape the crypto investing landscape, Struct Finance, a DeFi platform that enables investors to engage with tailored interest rate products linked to digital assets, is thrilled to announce the launch of the BTC.B-USDC Vaults.The...
The US treasury auctions of $32 billion of 10 year notes at a high yield of 3.857%
High-yield 3.857%WI level at the time of the auction 3.847%Tail 1.0 basis points versus six-month average of 1.8 basis pointsBid to cover 2.53X versus six-month average of 2.38XDirects (a measure of domestic demand) 19.9% versus six-month average of 20.0%Indirects (a...
US treasury to $32 billion a 10 year notes that the top of the hour
The US treasury will auction off $32 billion of 10-year notes at the top of the hour. The 6-month averages of the major auction components for the issue show:Bid to cover 2.38XTail 1.8 basis pointsDirects (a measure of domestic demand) 20.0%Indirects (a measure of...
US NEC Director Brainard (and former Fed Governor): CPI data was encouraging
Lael Brainard, the NEC Director (and former Fed Governor), is on the wires saying:June CPI was encouragingUS labor market is in much better balance than just 6 months agoBiggest risk to economy was the threat of debt default, and that has been taken off the tableNew...
USDJPY continues it tumble to the downside. Down over 650 pips over the last 5 days, but..
The USDJPY is down for the 5th consecutive day. Over that time period, the pair has moved over 650 pips. That's a big move in a short period of time. In the process, the price has moved below a upper topping trendline on the daily chart at 139.029, and moved down and...
European major indices close sharply higher as risk-on flows dominate
The major European indices are piggybacking on the better-than-expected US CPI data and subsequent risk-on a flows. Gains of well over 1% are seen across the major indices.Looking at the closing levels:German DAX, +1.5%Frances CAC, +1.64%UK's FTSE 100 +1.91%Spain's...
BOCs Macklem: Concerned that if not careful, the progress to price stability could stall
> Central Banks > BOCs Macklem: Concerned that if not careful, the progress to price stability could stall Central Banks Press conference Q&A has begun <!--> --> <!--> --> We are concerned if we are not careful, the progress to price...
Highlights of prepared remarks from BOC’s Macklem press conference
> Central Banks > Highlights of prepared remarks from BOC's Macklem press conference Central Banks BOC raise rates by 25 basis points to 5% today <!--> --> <!--> --> Further rate decisions will be guided by assessment of incoming data and...
EURUSD technical update: EURUSD breaks to new 2023 highs. What next for the pair?
The EURUSD is trading to a new session and 2023 high and in the process is extended to yet another target between 1.1094 and 1.11346. The high prices traded up to 1.1120 so far. A move above would have traders targeting 1.1184 followed by the 61.8% retracement of the...
Post the BOC rate hike, what are the technicals telling us in the USDCAD
The USDCAD is trading lower today help by softer US CPI data in a Bank of Canada which was a little bit more hawkish. They raise their inflation forecasts for 2024 and also picked up the GDP. They also commented that inflation although lower due to energy prices was...