Powell’s Speech The Highlight Of The Day, First Post Payrolls Remarks

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“Asian equities traded with mixed tone overnight following on from a very quiet session on Wall Street, as investors were reluctant to extend risk ahead of a speech by Fed Chair Powell, who addresses the Economic Club of Washington later today, investors will parse Powell’s comments for his read on the red hot jobs data in the US Friday, these come in light of lasts weeks post rate announcement press conference when markets believed the Fed Chair gave the first clear acknowledgement of the start of the disinflationary process in play, however, the employment data on Friday has pushed market pricing in favour of further rate hikes given the continued tightness in the US labour market.  Overnight the Australian central bank raised the rate again and confirmed they expected further hikes to follow given the re-emergence of inflationary pressure in the economy, this move comes as markets were starting to reprice lower rates down under before inflation data came in hotter than expected, leading investors to consider inflationary pressures returning on a global scale, Fed’s Bostic’s remarks overnight supported this view suggesting that employment data could lead to a higher terminal rate stateside 

European bourses are taking the soft handover from Asian markets with the EuroStoxx CAC and Dax trading lower, the stand-out performer is the FTSE being supported by record earnings from BP this morning, who announced a £2.7Bln stock buyback programme. In the foreign exchange markets, the unwind in Dollar weakness is attracting attention, with investors piling into Dollar call options and increasing bets on a return to EUR & GBP weakness, notably €500million trading on a nine-month 0.9500 USD call structure ”

Overnight News of Note

  • Asian Share Markets Stabilised Somewhat On Tuesday Ahead Of Powell
  • Aussie Extends Gain After RBA Hikes Rates, Signals More To Come
  • RBA Raises Rates To 10-Year High, Says More Hikes Ahead
  • RBA: Path To Achieving A Soft Landing Remains A Narrow One
  • Fed’s Bostic Says Higher Peak Rate on Table After Jobs Blowout
  • China's Yuan Off One-Month Low On Signs Of De-Escalation In Sino-U.S. Tensions
  • Japan's December Nominal Wages Rise 4.8%, Most Since 1997
  • Australia Records Its Fifth Straight Year Of Trade Surpluses In 2022
  • BoE Officials Say Brexit Fuelling Inflation, Driving Up Rates
  • Oil Extends Gain As Saudi Arabia Bets On Demand Rebound In Asia
  • NYSE Plans To Pay In Full 60% Of Claims Submitted After Glitch

(Sourced from Bloomberg, Reuters and other reliable financial news outlets)

Technical & Trade Views

SP500 Bias: Intraday Bullish Above Bearish Below 4070

  • Primary support is 3990
  • Primary objective is 4384
  • Below 4050 opens 4020
  • 20 Day VWAP bullish, 5 Day VWAP bearish

(Click on image to enlarge)

EURUSD Bias: Intraday Bullish Above Bearish below 1.0610

  • Primary support  is 1.0610
  • Primary objective is 1.11
  • Below 1.0585 opens 1.0500
  • 20 Day VWAP bearish, 5 Day VWAP bearish

(Click on image to enlarge)

GBPUSD Bias: Intraday Bullish Above Bearish below 1.21

  • Primary support  is 1.21
  • Primary objective 1.1840
  • Above 1.2165 opens 1.2260
  • 20 Day VWAP bearish, 5 Day VWAP bearish

(Click on image to enlarge)

USDJPY Bias: Intraday Bullish above Bearish Below 131

  • Primary support  is 131
  • Primary objective is 134.70
  • Below 130.80 opens 130.11
  • 20 Day VWAP bullish, 5 Day VWAP bullish

(Click on image to enlarge)

AUDUSD Bias: Intraday Bullish Above Bearish below .7050

  • Primary resistance is .7050
  • Primary objective is .6750
  • Above .7150 opens .7250
  • 20 Day VWAP bearish, 5 Day bearish VWAP 

(Click on image to enlarge)

BTCUSD Intraday Bias: Bullish Above Bearish below 23200

  • Primary support 22200
  • Primary objective is 25000
  • Below 21000 opens 20300
  • 20 Day VWAP bullish, 5 Day VWAP bullish

(Click on image to enlarge)

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Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to ...

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