AUDUSD bounces on improved risk appetite
The Aussie appears to be stuck in a narrow range as the pair looks to recover after dropping over 200 pips in the past week. We could see further consolidation as traders prepare for this week’s RBA meeting. Rates are expected to remain unchanged, but that will not stop the speculation that we will see a signal of their next cut. The return to their inflation target in a reasonable timeframe will be the focus, which could set out the path of the Aussie for the next half of the year. 0.6600 is the next resistance, and 0.6450 is the closest support.
UKOIL recovers as tensions heighten
Oil prices increased over fears of a widening conflict in the Middle East. With most global oil reserves, supply risks are increasing daily. Prices continue to be volatile, and there are concerns about demand in China as it grapples with a slowing economic recovery. In addition, with the Fed signalling a September rate cut, this decision could support economic activity, resulting in higher oil demand. An uptick in optimism could trigger short covering towards 85.00, with 77.50 as fresh support.
SPX 500 jumps as Powell signals rate cut
The S&P rallied after the Fed kept interest rates unchanged while highlighting inroads against inflation. The index posted its best session since February last week upon the news, as price action looks to get back on track. It could be ready to move if data can continue to give the central bank confidence that inflation is slowing. This shifted sentiment dramatically as optimism continues for a broader recovery. The index is on its way to 5600, with 5380 as the first support.