NAS 100 reversing gains
The Fed’s decision is still providing ripples in the market as the initial reaction saw the Nasdaq move higher after some initial volatility around the decision. The index pushed to a multi-week high as price action saw the 20,000 level in the distance. However, some gains have been reversed as traders weigh up the next Fed decision, as stocks could see a sell-off if the central bank turns dovish. The index tests 19850 and 19000, which is the immediate support.
AUDUSD RBA doubles down
The pair traded at a fresh monthly high as the Fed delivered its 50bps cut. With Australia’s Employment report also influencing the Aussie, the economy is expected to add a decent job number. As the cash rate is unlikely to be reduced in the short term, signs of a resilient labour market could generate a bullish reaction as the RBA raises its guidance to combat inflation further. The pair is heading towards 0.6900, with 0.6750 as a fresh resistance.
UKOIL rebounds as demand prospect brightens
Brent oil saw a brief rally away from the $70 area as traders ignored rising tensions in the Middle East. Further tensions with the situation in Lebanon could lead to disruptions in the region’s oil supply. As the oil market braces itself for more news, the fundamentals will be a crucial driver in the direction of the black gold in the coming months. The price is moving towards 75.00 after bouncing off 73.00, which is now critical support.
