Market Update – August 9/2022

Written by Stuart Cowell

USDIndex slipped to test 106.00, before recovering to 106.20. US Stocks opened positively but closed flat for the dayNVDA –6.3%, Novavax -5.01%, AMC +8.03%, GM +4.16%. Asian markets mixed (Hang Seng flat,  Nikkei -0.88%). European FUTS also mixed. Yields fell into close (10yr 2.7657%),  Oil bounces close to 2% to recoup the $90 handle, Gold rallied over 1% from $1770 support and BTC moved up to test key $24K area.

China continues exercises around Taiwan for 6th day, Russia installs more troops around captured key Ukrainian nuclear power plant, as US promises Ukraine another $1 billion in military aid.

Week Ahead – Highlight of the week is US CPI tomorrow which is expected to decline to 0.2% m/m and  8.7% y/y.

  • USDIndex tested down to 106.00 after blockbuster NFP on Friday and holds 106.20 now. AUD & NZD underperformed in Asian session.
  • Equities – USA500 closed flat -5.13pts (-0.12%) (4140), tested & rejected 4175 resistance intraday. US500FUTS at 4144 now. 100 MA at 4100.
  • Yields 10-year yield fell into close as Treasuries eased with USD. The 2/10yr. yield curve moved as much as 44bp inverted yesterday. 10yr closed 2.765%, trades at   2.76% now. 
  • Oil – rallied from 6-month lows under $87.00 again to test last weeks support at $90.70,  holds at $90.00. 
  • Gold – rallied from $1770, support to $1788 highs now. 20-day MA $1757.
  • Bitcoin surged to $24.2K Monday, before trading at  $23.7k now.
  • FX Markets – EURUSD back over 1.02000USDJPY rejected 135.50 Monday back to 135.00 now. Cable tested up to 1.2130 back to 1.2080 support now.

Overnight – UK July Retail Sales beat (+1.6% vs. -1.3%), AUD Consumer Confidence in line (-3%).

Today – EIA STEO, Supply from UK, Germany & US.

Biggest FX Mover @ (06:30 GMT) EURAUD (+0.36%). Bounced from 1.4580 support on Monday after declining from 1.4775 highs on Friday. MAs aligning higher,  MACD histogram negative but signal line rising, RSI 53.62 & rising, H1 ATR 0.00161, Daily ATR 0.0134.

About the author

Stuart Cowell

With over 25 years experience working for a host of globally recognized organisations in the City of London, Stuart Cowell is a passionate advocate of keeping things simple, doing what is probable and understanding how the news, charts and sentiment work together to provide trading opportunities across all asset classes and all time frames.