Update after the close on Wall Street : Strong AUD
The US Dollar was bearish against most of its major pairs on Wednesday with the exception of the NZD, CHF and EUR. On the economic data front, the Mortgage Bankers Association's Mortgage Applications fell 0.3% for the week ending April 17th, from +7.3% in the week previous week. On Thursday, Initial Jobless Claims for the week ending April 18th are expected to fall to 4,500K, from 5,245K in the prior week. Continuing Claims for the week ending April 11th are expected to rise to 17,000K, from 11,976K in the week before. Markit's U.S. Manufacturing Purchasing Managers' Index for the April preliminary reading is expected to decline to 35.0 on month, from 48.5 in the March final reading. Finally, New Home Sales for March are expected to fall to 640K homes on month, from 765K homes in February.
The Euro was bearish against all of its major pairs. In Europe, the Eurozone Consumer Confidence Index dropped to -22.7 in April, its lowest level since March 2009, from -11.6 in March. The U.K. Office for National Statistics has released March CPI at +1.5% on year, as expected.
Regarding currency pairs
• EUR/USD fell 39pips to 1.0819 the day's range was 1.0803 - 1.0885 compared to 1.0817 - 1.0880 the previous session.
• GBP/USD jumped 37pips to 1.2326 the day's range was 1.2275 - 1.2386 compared to 1.2248 - 1.2448 the previous session.
• USD/JPY slipped 6pips to 107.74 the day's range was 107.52 - 107.94 compared to 107.28 - 107.89 the previous session.
• USD/CHF gained 21pips to 0.9719 the day's range was 0.9669 - 0.9732 compared to 0.9670 - 0.9728 the previous session.
• AUD/USD rose 39pips to 0.6319 the day's range was 0.6277 - 0.6351 compared to 0.6254 - 0.6347 the previous session.
• USD/CAD dropped 40pips to 1.4171 the day's range was 1.4115 - 1.4238 compared to 1.4114 - 1.4265 the previous session.
Looking at U.S. indices
• The Dow Jones Industrial Average gained 456.94pts (+1.99%) to 23475.82.
• The S&P 500 jumped 62.75pts (+2.29%) to 2799.31. Percentage of stocks trading above their 200d moving average: 17.4 | % of stocks trading above their 20d moving average: 66.5
• The Nasdaq 100 rose 261.63pts (+3.11%) to 8664.64. Percentage of stocks trading above their 200d moving average: 37.3 | % of stocks trading above their 20d moving average: 79.6
FX pair in focus
The AUD/USD pair gained ground on Wednesday as prices remain supported by a rising trend line inside a bullish channel. As long as the pair can remain above 0.6165 support look for a test of key overlap resistance at the 0.6685 level where X marks the spot. A break below 0.6165 may confirm declining trend line resistance in place since Dec 2019 and pressure the pair down towards 0.598.
Source: GAIN Capital, TradingView