Australian Dollar, AUD/USD, S&P 500, Early US Earnings, Sentiment – Asia Pacific Market Open

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Asia-Pacific Market Briefing – Nike, FedEx Earnings, Consumer Confidence

The sentiment-linked Australian Dollar outperformed its main counterparts on Wednesday, benefiting from the cautious enchancment in threat urge for food. On Wall Street, the S&P 500, Dow Jones and Nasdaq 100 gained 1.49%, 1.6% and 1.54%, respectively. Meanwhile, the VIX market ‘fear gauge’ plunged to its lowest since late November. This is in step with fading volatility that tends to happen into the Christmas vacation.

There had been a few elementary elements in play that impressed markets. For starters, earnings experiences from Nike and FedEx stunned larger. Given the fading liquidity as 2022 involves an finish, merchants might need taken these as an indication that the earnings season forward could be rosier than anticipated. Of course, if that doesn’t transpire, it might make a unfavourable response extra violent than earlier than the information at the moment.

Meanwhile, the US Conference Board Consumer Confidence for December crossed the wires and beat expectations. The gauge clocked in at 108.3 versus 101.0 anticipated. That is the best studying since April. Keep in thoughts that going ahead, higher information could not essentially be ‘good’ for markets given {that a} still-strong economic system could push the Federal Reserve to stay hawkish for longer.

Australian Dollar Technical Analysis

From a technical standpoint, the Australian Dollar has confirmed a breakout underneath a bearish Rising Wedge chart formation. AUD/USD has gotten caught up on the previous falling trendline from March. Holding as new help. But, needless to say the 200-day Simple Moving Average (SMA) can be sustaining the dominant draw back focus. Key resistance is the 61.8% Fibonacci retracement stage at 0.6768. Pushing underneath the midpoint at 0.6654 opens the door to an more and more bearish view.

AUD/USD Daily Chart

Chart Created in TradingView

Thursday’s Asia Pacific Trading Session – Eyes on Market Sentiment

Thursday’s Asia-Pacific buying and selling session is missing notable scheduled financial occasion threat. That locations the main focus for merchants on market sentiment. This leaves indices such as the Nikkei 225, ASX 200 and Hang Seng Index ready to maybe capitalize on the rosy Wall Street buying and selling session. That may bode properly for the Australian Dollar.

S&P 500 Technical Analysis

The S&P 500 appeared to search out help within the aftermath of breaking underneath a bearish Rising Wedge. The midpoint of the Fibonacci retracement stage at 3841 is working along with the 50-day SMA as formidable limitations. Clearing the 38.2% stage at 3921 could open the door to extending good points again in the direction of the falling trendline from earlier this 12 months. Otherwise, the 61.8% stage at 3760 is in focus.

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S&P 500 Futures Daily Chart

S&P 500 Futures Daily Chart

Chart Created in TradingView

— Written by Daniel Dubrovsky, Senior Strategist for DailyFX.com

To contact Daniel, comply with him on Twitter:@ddubrovskyFX

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