Market Wrap: Stocks, Bonds, Commodities
World stocks stayed close to record highs on Monday as investors weighed surging European business activity and welcome U.S. jobs report against worries about the highly transmissible Delta variant of COVID-19.
Most Asian share markets opened a fraction higher on Tuesday, ahead of a key decision by Australia’s central bank on its quantitative easing program and despite ongoing concerns over the future regulation of China’s powerful technology sector.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.10% to 875.97 levels. Australian index fell 0.73% to 7,261.00. Japanese Nikkei traded higher 0.16% to 28,643.21.
European stocks were lower on Tuesday, with the Stoxx Europe 50 Index fell 0.24% to 4,077.22, Germany’s DAX lost 0.33% to 15,606.30, and France’s CAC slipped 0.27% to 6,549.80, and U.K.’s FTSE 100 advance 0.05% to 7,168.15.
Benchmark 10-year U.S. Treasury rose as demand for safe risk grows again, today 10-year bond yields advance 0.61% to 1.441.
A spike in oil prices risks fanning wider moves across asset classes should inflation-sensitive investors believe the crude market will tighten further after OPEC+ failed to agree on a deal to increase production.
Spot Brent crude oil rose 0.69% to $77.69 per barrel. US West Texas Intermediate crude advance 2.32% to $76.90 a barrel.
The yellow metal higher 1.29% to 1805.60 dollars per ounce.
Market Wrap: Forex
The New Zealand dollar rose on Tuesday after a strong business survey pulled forward rate hike expectations there to as soon November, while its Australian counterpart crept higher ahead of its own crucial central bank policy meeting later in the day.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, down 0.22% to 92.207.
The Euro US Dollar (EUR/USD) is a widely traded pair that gained 0.05% today. This left the pairing trading around $1.18690.
The Japanese yen gained against the U.S. dollar on Monday as the stock pushes higher. Today US/JPY lost 0.15% to 111.860 level.
Another commodity-related currency higher against the U.S dollar, AUD/USD up 0.11% to 0.75320, and NZD/USD flat to 0.70260.
EUR/USD Intraday: Break resistance level
Our pivot point is at 1.18730
Preferable Price Action: Take long positions above pivot level with targets at 1.19080 & 1.19230 in extension.
Alternative Price Action: Below pivot looks for a further downside to 1.18380 & 1.18220.
Comment: Pair above its 55MA & 20MA and RSI above 50 levels.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
GBP/USD Intraday: Trend on the upside
Our pivot point is at 1.38640
Preferable Price Action: Buy positions above pivot with targets at 1.39120 & 1.39390 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.38150 & 1.37850.
Comment: Price above its 55MA & 20MA and RSI at overbought levels.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
USD/JPY Intraday: Trend on the downside
Our pivot point is at 111.130
Preferable Price Action: Sell position below pivot with the target at 110.700 and 110.500 in extension.
Alternative Price Action: The upside breakout of the pivot would call for 111.550 and 111.750.
Comment: price below its 55MA and MACD in negative territory.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
AUD/USD Intraday: Trend on the upside
Our pivot point is at 0.75620
Preferable Price Action: Buy Positions above pivot with targets at 0.76180 & 0.76460 in extension.
Alternative Price Action: Below pivot looks for a further downside with 0.75030 & 0.74740 as targets.
Comment: Pair above its 20MA & 55MA and RSI above 50 levels.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
CRUDEOIL Intraday: Break resistance level
Our pivot point is at 75.47
Preferable Price Action: Above pivots buy Oil with 76.79 & 77.45 as targets.
Alternative Price Action: Sell crude below pivot with targets at 74.05 and 73.34 in extension.
Comment: Crude is above its 20MA & 55MA and MACD in the positive territory.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
XAU/USD Intraday: Strong Trend on the upside
Our pivot point is 1801.20
Preferable Price Action: Further upside to 1815.50 & 1824.90.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1785.70 and 1775.50.
Comment: MACD in positive territory and price above its 20MA & 50MA.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
Dow Jones Intraday: Support at 34,710.00
Our pivot point is 34,710.00
Preferable Price Action: Take Buy positions above pivot with targets at 34,916.00 & 35,025.00.
Alternative Price Action: Below 34,710.00 looks for further downside to 34,496.00 & 34,377.00.
Comment: Price below its 20MA & 55MA and RSI below 50 levels.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced