Investors Indecisive Ahead of the FOMC Decision

EU Shares Down, US Ones Up Ahead of Fed Decision

The dollar traded lower against the majority of the other G10 currencies on Monday and during the Asian morning Tuesday. It lost the most versus JPY, NZD, CHF and AUD in that order, while it eked out some gains only against SEK. The greenback was found virtually unchanged versus EUR and GBP.

Nasdaq 100 — Technical Outlook

Nasdaq 100 continues to show the best performance among major indices. The US technology index, during the past few trading sessions, kept forming new all-time highs. For now, the price is still balancing above a short-term tentative upside support line taken from the low of May 27 th. Although we may get a small correction given the strong up move, as long as the price is floating above the upside support line, we will see decent chances for another leg of buying.

AUD/USD — Technical Outlook

After hitting a new high this year, at 0.7042, AUD/USD started correcting a bit lower. The pair still remains above its short-term upside support line taken from the low of May 15 th. Although the rate had quite distanced itself from that line, we still need to see AUD/USD sliding a bit lower, in order to consider a larger correction lower. Until then, we will class the current setback as a small temporary correction and stay positive with the near-term outlook.

As for Today’s Events

During the European morning, Germany’s trade balance for April, Eurozone’s final GDP for Q1 and the bloc’s employment change for the quarter are due to be released. The German trade surplus is forecast to have declined to EUR 10.2bn from 12.8bn, while Eurozone’s final GDP is just expected to confirm its preliminary estimate, namely that the Euro-area economy shrank 3.8% qoq during the first three months of 2020. The bloc’s employment change is expected to show that the Euro-area economy has lost 0.2% jobs after gaining 0.3% in the last quarter of 2019.



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