Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

No Need To Worry

Published 01/02/2018, 10:01 am
Updated 04/08/2021, 01:15 am
AUD/USD
-
AXJO
-
AMZN
-

Originally published by CMC Markets

The major economic news over the past 24 hours has seen, at most, incremental change to the outlook for economic growth and interest rates. This will allow investors to concentrate on positive expectations from the upcoming reporting season and should see the S&P/ASX 200 index build on yesterday’s rally off chart support around 5990.

The Fed statement expressed a little more confidence that inflation will rise gradually in the near term. If they are correct in this, there will be at least three rate hikes this year, barring unforeseen risk events. While a little less positive, Australian CPI data did little to move the dial on expectations for RBA policy. At the same time, China’s manufacturing PMI remains within the moderate growth range it has now been in for 18 month.

The net effect of this news was to leave long bond yields largely unchanged and allowed stock markets to settle. Concerns over potential disruption from Amazon (NASDAQ:AMZN) put pressure on US health stocks. Were it not for this headwind, US indices would have had a more positive session.

The incremental shifts in outlook from the latest macro news has however been sufficient to see the Aussie dollar fade from chart resistance. A combination of a little more certainty about Fed rate hikes, a little less certainty about RBA policy and a marginal weakening in China’s manufacturing PMI was not the mix necessary to provide buyers with the confidence to push the Aussie past previous highs at .8125.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.