Market Sentiment Improves, Australia’s CPIs Enter the Limelight

Equities Rebound During and After the US Session

The US dollar traded mixed against the other G10 currencies on Monday and during the Asian morning Tuesday. It gained against CHF, NOK, and NZD in that order, while it underperformed versus SEK, EUR, and CAD. The greenback was found virtually unchanged against GBP, AUD, and JPY.

Nasdaq 100 — Technical Outlook

After declining in the end of last week, Nasdaq 100 found good support near a short-term upside support line taken from the low of June 15 th. We can now assume that this initial move lower might have been a corrective one, as the price has rebounded from that upside line, suggesting there could be more upside to come. For now, we will take a positive approach and continue aiming for slightly higher areas.

Will Australia Slip into Deflation?

As for tonight, apart from headlines surrounding the broader market sentiment, Aussie traders may also pay attention to Australia’s CPIs for Q2.The headline CPI rate is forecast to have fallen into negative waters, to -0.4% yoy from +2.2%, while the trimmed mean rate is anticipated to have declined to +1.4% yoy from +1.8%.

AUD/USD — Technical Outlook

Although AUD/USD continues to form higher lows, it is currently struggling to overcome the high of last week, at 0.7182. That said, the pair is still balancing above a short-term upside support line drawn from the low of July 20 th. If the rate continues to trade above that upside line, it has a good chance of rebounding again. However, we would prefer to wait for a break above last week’s high first, before examining higher areas.

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