Market Highlights
1 - US stock markets close down on the day with DJ -0.26%
2 - European indices close mixed. FTSE down -0.45%, DAX +0.10%
3 - Gold bounces, up 1.36% at $4182; Brent down 2.84% -$2.72 on the day
4 - BTC closes unchanged at $83.5K within broader gains for Q3
5 - RBA raised rates by 25bps, as expected; US 30yr yields hit highest since 2002
Daily Price Activity
Insights
USD INDEX The USD closed higher today, although it did give back late in the session. The USD rally was due to more of the same…US yields remaining high, consensus for another rate hike in October at over 70%, Euro remains weak and high oil prices cause inflation risks. The late pull back resulted from 10yr yields retracing while USDX struggled at resistance. Resistance at 101.35 with support 100.89.
S&P 500 The index closed modestly lower with the usual high yields contributing, as well as a deterioration in consumer confidence - the 81.9 reading is the lowest level since 2014. Interestingly, NY Fed President William’s “no need for urgency” comments helped stocks recover somewhat late in the session. Note lower highs and lower lows on the chart. Resistance at 7767 with support at 7710.
GOLD The metal bounced today following yesterday’s very sharp sell-off, however the recovery was modest and did not reverse the overall weakness. High oil prices = inflation concerns; expected Fed tightening; high yields and USD - all contributing to bearish gold. Technically $4110 - $4120 is now an important near-term support area. Resistance at $4183 with support at $4411.
BRENT OIL Oil closed lower, down 2.6% on the day. The main catalyst was evidence that Middle East oil flows were recovering, removing the immediate supply disruption premium. The fragile price activity again trades below the pivotal and psychological $100 mark. Resistance at $100.27 with support at $95.66.
BITCOIN Neither buyers or sellers were able to hold on to intraday moves with a daily doji-like candlestick confirming the indecision. BTC gained 0.68%, recovering modestly after Monday’s 1.12% decline. Noteworthy that the cryptocurrency is still up 39% for Q3, so the recent sideways activity is occurring within a much larger quarterly advance. Resistance at $84.5K with support at $82.7K.
FX Pivot Levels
