Australian Dollar, AUD/USD, Earnings, Crude Oil, Technical Outlook – TALKING POINTS
- Asia-Pacific merchants face a lightweight financial calendar forward of a busy week
- Crude oil costs rose as provide considerations outweigh financial progress woes
- AUD/USD costs stall at 50-day SMA as the post-wedge transfer continues
Tuesday’s Asia-Pacific Outlook
Asia-Pacific sentiment might bitter after a worrying report from Walmart weighed on US stock futures after the New York closing bell. Walmart downgraded its revenue forecast out to 2023, citing double-digit meals costs and their affect on shopper spending. The benchmark S&P 500 rose 0.13%, whereas the tech-heavy Nasdaq-100 Index (NDX) fell 0.55%.
The US Dollar is barely softer after a risky 24 hours of buying and selling. The Australian Dollar gained in opposition to most of its friends, benefiting from greater iron ore costs in Asia. Copper costs had been greater as nicely. Traders might stay cautious forward of this week’s FOMC assembly on Wednesday when policymakers are seen mountain climbing by 75-basis-points.
Europe’s pure fuel flows from Russia are anticipated to fall after Gazprom, Russia’s state-backed pure fuel firm, acknowledged that flows via Nord Stream 1 are set to drop to 33 million cubic meters per day. European pure fuel costs rose 10% in a single day. A enterprise confidence gauge for Europe fell to the bottom stage because the pandemic began, with greater power costs weighing closely on the gauge.
Crude oil costs rose on renewed provide considerations regardless of rising fears of financial stagnation across the globe. While the WTI immediate unfold rose barely, it was the 1:1 RBOB/CL crack unfold that noticed a big response, rising greater than 10%, reflecting greater refinery demand. Tonight’s API stock report for US stockpiles might affect oil costs as merchants await a number of probably high-impact financial prints later this week, together with the US advance second-quarter GDP progress report.
Notable Events for July 26
Philippines – Budget Balance (June)
Thailand – Balance of Trade (June)
Singapore – Industrial Production (June)
AUD/USD Technical Outlook
AUD/USD rose in a single day however the 50-day Simple Moving Average (SMA) capped upside. The post-wedge transfer has a goal of 0.7036, which can be reached shortly if bulls handle to pierce the aforementioned SMA and the psychological 0.7000 stage. The Relative Strength Index (RSI) and MACD oscillators present constructive motion, suggesting wholesome underlying momentum within the cross.
AUD/USD Daily Chart
Chart created with TradingView
— Written by Thomas Westwater, Analyst for DailyFX.com
To contact Thomas, use the feedback part under or @FxWestwater on Twitter