AUDUSD retreats as RBA becomes dovish
The Australian dollar weakened after a bullish run saw over 200 pips being added to the pair since last month. The pullback came despite further losses in the US Dollar, even as US yields traded in a mixed fashion. Speculation suggests that a rate cut by the Fed in September is fully anticipated, which the Aussie could cash in on. An unwavering dovish stance could push the Aussie towards 0.6600 with 0.6800 as a resistance.
UKOIL struggles to break descending channel
Brent crude remains in a bearish loop as concerns over future demands weigh heavy on prices. The ongoing conflicts in the Middle East continue to influence black gold’s price movements. With Brent falling for a third straight session, all eyes are now on China as the worrying demand outlook seems to have hit traders. With prices trading at their lowest in a month, can oil revive the bullish tone set at the beginning of the year? The price hangs over 84.00, with 87.00 the first resistance.
US 500 pullback or correction?
The S&P 500 tumbled as plunging microchip shares worsened the ongoing rotation out of tech-related stocks. Added to that, the potential escalation of American trade conflicts with China saw most indexes crash at a time when traders thought further record highs were in sight. Rumours that the Biden administration is looking at trade restrictions with China sent microchip stocks lower. So, a temporary setback or a complete crash? The index is heading towards 5500 and 5250 as fresh support.
