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Will the US dollar, top markets reveal a trend trend in the news downturn?

US DOLLAR, DOW JONES, NASDAQ, PCE, FED, INFLATION, AUD / USD – Talking Point:

  • Financial markets may reveal the trend bias underlying the downturn in newsflow
  • Pre-positioning before the PCE may point to the Fed’s dominant view of inflation
  • AUD / USD May mark a major top with a large head and shoulder pattern

With a quiet start at the weekly trading open, the G10FX currency has been idling through Asia Pacific trade. Norwegian krone managed a narrow lead while almost stopped elsewhere. Crude oil price..The· Japanese yen We also managed a small profit.

Gaining momentum may not be easier in European trade. Liquidity is reduced due to the lack of some major markets for Whit Monday holidays, such as Germany and Switzerland. The economic data docket is basically empty.

Calmness may prove beneficial. After weeks of speculation about rising inflation and the Fed’s impact on monetary policy, it reveals a market-directed “default,” the path of least resistance in the absence of headline-driven volatility. May help you.

Market downturn to uncover underlying price trends?

So far, risk-on-bias is widespread. Futures that track US equity benchmarks are definitely pointing high.Still, cash-rich contracts are probably noteworthy Dow Jones Due to its heavy use of technology, it outperforms those that track rate-sensitive ones. Nasdaq.. There may be a scent of tightening jitter.

Nonetheless, the market would have made some points if Wall Street managed a fairly widespread advance without the help of a day’s catalyst. In fact, such a move could find a follow-through in the short term just because the risk of an event scheduled for this week is particularly short.

Similarly, you can see if your emotions have collapsed without being affected by individual triggers. Such results may initiate a very different kind of lead-in to the arrival of Bannerbit economic data for Friday week – April PCE inflation measurements.

Pre-positioning of PCE data may reveal market trend bias

This is the Fed’s favorite inflation gauge. Core’s annual growth rate is expected to rise to 2.9%, the highest in nearly 30 years.Upside-down surprises that reflect similar results for CPI, PPI, and wage inflation data over the same period can be spurred. Speculation that the oversized rise is more than just a basic effect..

The fall into the release suggests that investors are already booming with concerns about withdrawing the Fed’s stimulus package sooner than expected. As a result, the trend of commodity currencies linked to growth will be significantly reversed, and U.S. dollar..

AUD / USD Technical Analysis-Australian Dollar Fall During Work?

the price is Below the 0.80 number, engrave a large, bearish head and shoulder (H & S) chart pattern.To develop a setup from here, you need a push below 0.7677. This is the resistance rotation support level enhanced by the uptrend line. This can pave the way for the H & S neckline, which is the boundary of the pattern.

Below that, daily closing prices mean a fall measured around 0.7120.Alternatively, regaining a foothold over resistance in the 0.7820-49 zone could neutralize immediate selling pressure and set the stage for another challenge at the 2021 swingtop 0.8007.

AUD/U.S. dollar Price chart created by TradingView

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— Written by Ilya Spivak, APAC Head Strategist at DailyFX.com.

To contact Ilya, use the comments section below or @IlyaSpivak On twitter



Will the US dollar, top markets reveal a trend trend in the news downturn?

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