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Mixed response from Asian equities to Fed Chair Powell’s speech, as Wall Street whipsawed in reaction to what many investors saw as two-sided comments regarding the rate path going forward with markets pricing a higher terminal rate, however, Powell once again acknowledged nascent disinflationary signals, most importantly Powell gave little push back on loser financial conditions, this led investors to bid up US equities into the close, the benchmark SP500 ending the day at highs notching up a 1.29% gain closing at 4164. Weak earnings from regional powerhouses Softbank, Sharp & Nintendo (issuing a 10% pay rise to employees, shares down 8% in response) weighed on the NIkkei leading the Shanghai Comp and Hang Seng lower, with all three major indexes nursing losses of circa -0.4%. 

With no tier one econ data of note European markets are taking their lead from a robust round of earnings on the continent, the CAC40 in France is the standout performer up 0.4% at the open, as Oil Major Total Energies delivered record break earnings continuing the trend of energy sector players banking the benefits of inflation driven gains in energy prices, while less palatable to consumers and politicians, investors continue to reap rewards. In the UK, the country's premier home builder Barratt Developments issued a H1 update in which they underlined a continued uncertain outlook, hampered by elevated mortgage rates leading to a steep decline in housing demand, however, the property player did announce that buybacks would recommence, helping to send the FTSE to new record highs at the open of trade in London.

In the US, equity futures are in the red pulling back by 0.3%, with no significant econ data on the docket today, investors will once again focus on central bank policy, with a bevy of Fed policymakers on deck this afternoon, including Kaskari, Wiliams, Waller, Barr, and Cook, it is expected that they will tow a similar line to Fed Chair Powell while accepting some signs of disinflation (mentioned 11 times in his speech last night) it remains too early to consider a pause or pivot in rate policy, indeed the heat in the US labor market remains front and center concern for the central bank as such expect the lean from messaging to be on the ‘higher for longer’ with markets currently pricing a terminal rate at 5-5.25% ahead of next week's inflation data in the US.
 

FX Options Expiration New York Cut

• AUDUSD .7190 (1.1bln)
   

Overnight News of Note

• Fed Chair Warns Of Even Higher Rates If Jobs Data Stays Strong
• Dollar Pulls Back As Powell Sticks To Usual Fed Playbook
• Shares Of Nintendo, Softbank Tumble After Earnings
• Oil Climbs 3rd Day On Subdued Dollar, U.S. Crude Stocks' Drop
• Gold Gains As U.S. Dollar Eases Off One-Month Peak
• Japan Current Account Surplus Shrinks As Weak Yen, Trade Deficits Bite
• Japan To Hold 3-Way Wage Talks With Business, Labour Groups - NHK
• Fitch Ratings: China 2023 Growth Forecast Revised Up To 5%
• China’s Open Borders Will Lift Australian GDP, ANZ Bank Says
• Japanese Sell Record Amount Of Foreign Bonds As Hedge Costs Rise
• SocGen's Q4 Profit Beats Expectations, Sees Higher Bad Loan Risks

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

Technical & Trade Views

SP500 Bias: Intraday Bullish Above Bearish Below 4120

• Primary support is 3990
• Primary objective is 4384
• Below 4080 opens 4020
• 20 Day VWAP bullish, 5 Day VWAP bearish

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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 130
• 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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