Currencies

Australia’s largest trade partner, China, released improved Retail Sales and industrial production for the month of October, providing a boost to the Aussie and to overall market sentiment

This week starts with improved sentiment, helped by better than expected economic data from China, which works against the US Dollar.

High US Inflation and the relevant rise in US Yields and Fed rate hike bets, were the main themes during this week and the key drivers of market movement, while we also had some high profile companies reporting

Past performance is not an indicator of future results The left chart shows the USDOLLAR daily. It sits in the area of strength (upper blue and upper red bands). The red Bollingers are expanding as dollar volatility increases. The right chart shows the hourly time frame. Current price action is at a confluence of support [central pivot (P) and price support (blue rectangle)]. We are looking to see if the…

The pair started the day strong, but has since erased most of its gains and trades mixed, as it approaches to the end, of what is likely going to be a profitable week

Past performance is not an indicator of future results Further to our previous analysis, gold's EMAs are pushing for a more bullish formation. EMAs are trend-following indicators and work under trend conditions. Consolidations tend to lead to whipsaw signals. The shorter-term green EMA has moved into a bullish position, and we are now looking for the mid-term orange EMA to cross above the longer-term red EMA (aqua ellipse). If this…

Past Performance is not an indicator of future results. The weekly EURUSD is examined on several levels: 1. Head and shoulders top (blue rectangles). The positively sloped aqua line shows the pattern's neckline. The vertical aqua line derives the pattern's target following its breakout. The target is 1.1134 and is academic - it may or may not be achieved. However, it does give the sense of bearishness associated with breakdown.…

The pair is trying to halt its post-US CPI plunge today, but could not keep away from fresh 2021 lows and looks like it won’t be able to avoid a third straight negative week either

Past performance is not an indicator of future results Following our previous analysis, the USDOLLAR has built off of its reference low. This week's price action has charted the next higher peak in a series of higher troughs followed by higher peaks. The USDOLLAR is in a defined uptrend. Furthermore, the greenback's momentum has increased throughout 2021. This is evident by the shift up in gradient from the green trendline…

Yesterday’s surge in US CPI Inflation boosted US 10 year Bond Yields and bolstered expectations around rate hikes by the Fed, leading the pair to one of its best days of the year

Yesterday, the US headline CPI beat the forecast of 5.8% y/y, coming in at 6.2%. The core CPI, which strips out volatile items such as energy and food also beat at 4.6% (4.3% forecast). As such, nominal yields are adjusting. Past performance is not an indicator of future results Source: www.tradingview.com The chart above shows the Heiken Ashi US10Y. Its yield is a nominal yield i.e. it has an inflation…