Investors Keep Gaze Locked on Ukraine Crisis, RBA Stands Pat

EU AND US SHARES SLIDE DUE TO ESCALATION IN UKRAINE, RBA HIGHLIGHTS UNCERTAINTY

The US dollar was found lower against all the other major currencies during the early European morning Tuesday, despite opening the week higher. The main gainers were AUD, NZD, and CAD, while the currencies against which the greenback lost the least ground were GBP, JPY, and EUR.

S&P 500 — TECHNICAL OUTLOOK

The S&P 500 cash index opened with a negative gap yesterday but hit support at 4260 and entered a recovery mode thereafter. At the time of writing, the index is very close to the 4392 barrier, marked by Friday’s high, but still below the downside resistance line drawn from the peak of January 4th. Thus, even if the recovery continues for a while more, we see decent chances for the bears to jump back into the action.

AUD/USD — TECHNICAL OUTLOOK

AUD/USD also opened with a negative gap yesterday, but hit support at 0.7168, and then, it started to march north. The rate overcame Friday’s peak of 0.7237, and now, it is very close to the peak of last Wednesday, at 0.7283. Despite the latest risk aversion, the most recent price structure still suggests higher highs and higher lows, with a potential break above 0.7283, confirming a higher high on the daily chart. Therefore, we will consider the near-term outlook to still be cautiously positive.

AS FOR THE REST OF TODAY’S EVENTS

During the European session, Germany’s preliminary inflation data for February are coming out, with both the CPI and HICP rates expected to have drifted further north. Specifically, the CPI rate is forecast to inch up to +5.1% yoy from +4.9%, while the HICP one to have risen to +5.4% yoy from +5.1%.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
JFD

JFD

JFD is a leading Group of Companies offering financial and investment services and activities.