Posted at 04 October 2022 / Categories Market Roundups
Market Roundup
•U.S. job openings post biggest drop in 2.5 years in August
•Dow closes up 2.80%, S&P 3.06%, Nasdaq 3.34%
•US Redbook (YoY) 12.3%,11.0% previous
•US Aug Factory orders ex transportation (MoM) 0.2%, -1.1% previous
•US Aug Durables Excluding Defense (MoM) -0.8%,-0.9% previous
•US Aug JOLTs Job Openings 10.053M, 10.775M forecast , 11.239M previous
•US Aug Durables Excluding Transport (MoM) 0.3%,0.2% previous
•US Aug Factory Orders (MoM) 0.0%, 0.2% forecast , -1.0% previous
•New Zealand GlobalDairyTrade Price Index -3.5% ,2.0% previous
Looking Ahead - Events, Other Releases (GMT)
•00:30 Australia Retail Sales (MoM) 0.6% forecast , 0.6% previous
•01:00 New RBNZ Interest Rate Decision 3.50% forecast , 3.00% previous
Looking Ahead - Events, Other Releases (GMT)
•01:00 New Zealand RBNZ Rate Statement
Currency Summaries
EUR/USD: The euro strengthened on Tuesday as dollar dipped as the yield on the benchmark U.S. 10-year Treasury fell after Australia's central bank surprised investors with a smaller-than-expected interest rate hike, with the euro climbing more than 1%. Investors are hoping that recent economic growth concerns may be enough to force the Federal Reserve and other central banks to become less aggressive in their fight against inflation. At the same time, stocks were rallying.Also, economic data showed job openings in the United States fell to 10.053 million in August, the most in nearly 2-1/2 years. The euro was last up 1.6% at $0.9978, recovering from its 20-year low of $0.9528 on Sept. 26.Immediate resistance can be seen at 1.1000 (Psychological level), an upside break can trigger rise towards 1.1036(50%fib).On the downside, immediate support is seen at 0.9911 (38.2%fib), a break below could take the pair towards 0.9890(5DMA).
GBP/USD: The pound rose for the sixth consecutive session on Tuesday as investors welcomed the British government’s U-turn on some tax cuts and the U.S. dollar slipped . The pound had already rebounded from its record low after the Bank of England (BoE) intervened in the bond market last week following a dramatic plunge in long-dated gilts. It has now regained all the ground it lost in the wake of Kwarteng’s so-called mini budget. Sterling was last up 0.75% at $1.1409, off a session high of $1.1428.Sterling dropped to a record low of $1.0327 on Sep. 26 after new Finance Minister Kwasi Kwarteng unveiled plans to slash taxes, particularly for the rich, and ramp up borrowing. Immediate resistance can be seen at 1.1453(50%fib), an upside break can trigger rise towards 1.1665 (61.8%fib).On the downside, immediate support is seen at 1.1230 (38.2%fib), a break below could take the pair towards 1.1177(5DMA).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Tuesday, adding to sharp gains the day before, as the possibility of central banks shifting away from aggressive tightening led to profit-taking in the high-flying greenback. Adding to support for the loonie, the price of oil, one of Canada’s major exports, rose by more than 3% to $86.24 a barrel on expectations of a large cut in crude output from the OPEC+ producer group. The loonie was trading 0.8% higher at 1.3610 to the greenback , after touching its strongest intraday level since Sept. 23 at 1.3504. The Bank of Canada has also been tightening aggressively. It’s governor, Tiff Macklem, is due to speak on Thursday. On Monday, it notched its biggest daily gain in more than two years.Immediate resistance can be seen at 1.3620(23.6%fib), an upside break can trigger rise towards 1.3625(9 DMA).On the downside, immediate support is seen at 1.3496 (38.2%fib), a break below could take the pair towards 1.3385(50%fib).
USD/JPY: The dollar was little changed against the Japanese yen on Tuesday after briefly popping above that level on Monday for the first time since Japanese authorities intervened to support their currency on Sept. 22.Japanese finance minister Shunichi Suzuki repeated on Monday that authorities stand ready for decisive" steps in the foreign exchange market if sharp and one-sided yen moves persisted. Investors are now directing their focus towards U.S. non-farm payrolls data due later this week and key inflationdata next week .Strong resistance can be seen at 144.91 (23.6%fib), an upside break can trigger rise towards 145.68 Higher BB). On the downside, immediate support is seen at 143.80 (21DMA), a break below could take the pair towards 143.64(38.2%fib).
Equities Recap
European markets closed on an upbeat note on Tuesday as stocks kept surging higher and higher after opening on a firm note, amid rising hopes the Fed and other major central banks will be less aggressive with regard to rate hikes in the coming months.
UK's benchmark FTSE 100 closed up by 2.57 percent, Germany's Dax ended down by 3.78 percent, France’s CAC finished the day up by 4.28 percent.
The S&P 500 index posted its biggest single-day rally in two years on Tuesday after softer U.S. economic data and Australia's smaller-than-expected interest rate hike stirred hope for less aggressive tightening by the Federal Reserve .
Dow Jones closed up by 2.80 percent, S&P 500 ended up by 3.06 percent, Nasdaq finished the up by 3.34 percent.
Treasuries Recap
Yields on government bonds fell on expectations that the Federal Reserve might slowdown, but Bank of New York President John Williams said while there are nascent signs of cooling inflation, price pressures remain too high, implying the U.S. central bank must press forward.
Yield on the 10-year U.S. Treasury slipped to near two-week lows, lifting rate-sensitive growth stocks.
Commodities Recap
Gold prices rose over 1% to a three-week peak on Tuesday, as the dollar and U.S. Treasury yields retreated, with investors hoping that the U.S. Federal Reserve could adopt a less aggressive approach to rate hikes.
Spot gold gained 1.5% to $1,723.99 per ounce by 2:17 p.m. EDT (1817 GMT), its highest since Sept. 13.U.S. gold futures climbed 1.7% to $1,730.50.
Oil rose by nearly $3 a barrel on Tuesday on expectations of a large cut in crude output from the OPEC+ producer group and as a weaker U.S. dollar made oil purchases less expensive.
Brent crude settled at $91.80 a barrel, up $2.94, or 3.3%. U.S. West Texas Intermediate (WTI) crude closed $2.89, or 3.5%, higher at $86.52 a barrel.