Market Highlights
1 - RBNZ tipped to cut rate to 3% as inflation cools and jobless rate at 4 yr high
2 - US stocks close little changed; S&P sets record high
3 - Yield curve higher across the board, 3,5,10 and 30 yr
4 - USD rose across the board with biggest gains vs AUD and NZD
5 - Crude oil futures closed higher, up $1.21 at $63.95; Gold fell $21.52; Bitcoin down $5.4K
Daily Price Activity
Insights
USD INDEX Buyers stepped in and erased yesterday’s losses with a strong day for the USD on all fronts. Support at 97.43 with resistance established at 98.16. Note the double bottom - strong reversal pattern. Strong data (PPI) contributed to the rally, with sellers remaining on the sidelines. The downtrend remains in place. Sellers may see today’s high as a lower high on the daily chart.
S&P 500 Sellers made a push lower early in the US session following the PPI data, only for buyers to confirm demand for the equity index, recoup losses, and go onto set a new record high close on the day. Support at 6452 with resistance set at 6495. Note the index moved in the same direction as the USDX (higher) as opposed to the traditional inverse relationship between the two assets.
GOLD Sellers dominated price activity as the metal moved in the opposite direction to the USD, as is the traditional inverse relationship. Support at $3329 with resistance higher at $3375. It appears geopolitical conflicts are not driving price action - although the upcoming Trump-Putin meeting could change that - while technicals continue to keep the safe haven commodity comfortable around the $3350 range.
BRENT OIL Buyers stepped in to put a temporary halt to the 10 day sell-off. Resistance at $67.03 with support at $65.57. Note the price activity contained within a loosely formed $1.50 range over the past 7 days. A global economic slowdown contributes to the supply side, while geopolitical concerns could add to demand. Note buyers continue to get held up at the $67 resistance area.
BITCOIN Yesterday saw a record high for the cryptocurrency. Today sellers reversed the gains and went on to take out the lows from the past 3 days. The strong push lower covered a $7.5K range. Resistance at $124.5K with support set at $117.1K. Note the bearish engulfing candlestick pattern - reversal sign.
FX Pivot Levels
