Equities Climb Higher Ahead of the FOMC Decision

S&P 500 AND NASDAQ HIT FRESH RECORDS AHEAD OF THE FED

The US dollar was found lower or unchanged against most of the other major currencies this morning. It was higher only versus JPY. The greenback lost some ground against EUR, NZD, and CAD, while it traded unchanged versus GBP, CHF and AUD.

NIKKEI 225 — TECHNICAL OUTLOOK

Nikkei 225 continues to grind higher, while trading above a short-term tentative upside support line drawn from the low of May 13th. Yesterday, the cash index managed to overcome the previous highest point of June, at 29271, and it is now trying to make its way towards the highest point of May, at 29686. For now, we will take a positive approach and aim higher, at least in the near term.

AUD/USD — TECHNICAL OUTLOOK

Although AUD/USD is currently trading below a short-term tentative downside resistance line taken from the high of May 18th, at the same time, the rate continues to balance above a short-term upside support line drawn from the low of April 1st. This means that the pair could be coiling up. But there seems to be plenty of space for manoeuvrability in between those line, so we might even see a move higher again in the near term.

AS FOR THE REST OF TODAY’S EVENTS

During the early European morning, we already got the UK employment report for April. The unemployment rate ticked down to 4.7% as expected, while the employment change revealed that the economy added less-than-forecast jobs in the three months to April. Average weekly earnings, both including and excluding bonuses, accelerated by more than expected. The pound barely reacted to the report, perhaps as GBP-traders are still waiting for tomorrow’s CPIs for May, and Friday’s retail sales for the month.

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