Australian Dollar, AUD/USD, ASX 200, NZD, US Dollar, USD/JPY, EUR/CHF – Talking Points

  • The Australian Dollar has wilted within the face of a sturdy US Dollar
  • APAC equities have been dusted by threat aversion fever taking maintain
  • After a busy week of fee hikes, will USD preserve going north, sending AUD south?

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The Australian Dollar is below strain once more as we speak after making a 2-year low yesterday as threat belongings battle within the aftermath of the Fed’s fee hike on Wednesday.

In the aftermath of the Fed’s 75 foundation level hike on Wednesday, Treasury yields leaped greater within the North American session in a single day. This additional boosted the US Dollar, driving AUD/USD decrease. The Kiwi has been caught up in the identical vortex and can also be close to a 2-year low.

USD/JPY had a glance below 142 early within the Asian session however has steadied again above that stage as markets tackle board the Bank of Japan’s intervention yesterday. It is a Japanese vacation as we speak.

Sterling continues to press for contemporary lows regardless of the Bank of England mountain climbing charges by 50 foundation factors yesterday. GBP/USD hasn’t traded at these ranges close to 1.1200 since 1985.

EUR/CHF is inching above 0.9600 on the time of going to print after yesterday’s 75 foundation level raise by the Swiss National Bank.

APAC equities are a sea of pink following on from one other down day on Wall Street. Australia’s ASX 200 has been the toughest hit, down over 2%.

The VIX index, a measure of volatility on US shares, has steadied close to 27 after spiking over 30 after the Fed’s fee hike. It continues to be a good distance from the excessive of 39 seen at first of the 12 months.

Crude oil is regular once more to this point as we speak with the WTI futures contract close to US$ 83 bbl whereas the Brent contract is a contact under US$ 90 bbl. Gold stays vary sure, buying and selling round US$ 1,670 an oz..

Looking forward, after a plenitude of European PMIs, Fed Chair Powell will probably be making remarks as nicely as Vice Chair Brainard and board member Bowman. The ECB’s Nagel and Swiss National Bank’s Jordan may even be crossing the wires.

The full financial calendar could be considered right here.

Recommended by Daniel McCarthy

How to Trade AUD/USD

AUD/USD TECHNICAL ANALYSIS

AUD/USD continues to languish close to a 2-year low and it stays inside a descending development channel. The low of 0.6574 was the decrease sure of the channel and it might present assist going ahead.

The worth is under all brief, medium and long run easy shifting averages (SMA) and all SMAs are displaying a adverse gradient. This could recommend that bearish momentum may proceed to evolve.

Resistance is perhaps on the break factors of 0.6671, 0.6682 and 0.6699

Chart created in TradingView

— Written by Daniel McCarthy, Strategist for DailyFX.com

To contact Daniel, use the feedback part under or @DanMcCathyFX on Twitter

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