Risk Appetite Deteriorates as Yellen Talks Rate Hike

YELLEN’S HIKE REMARKS AND TECH SELLOFF DRAG STOCK INDICES DOWN

The US dollar traded slightly higher against the majority of the other G10 currencies on Tuesday and during the Asian session Wednesday. It gained against SEK, EUR, NZD, NOK, and AUD in that order, while it underperformed versus GBP, CHF, and CAD.

NASDAQ 100 — TECHNICAL OUTLOOK

Nasdaq 100 declined heavily yesterday, ending up testing the short-term upside support line taken from the low of March 5th. The cash index then rebounded and climbed slightly higher. If that upside line continues to provide support, the price may travel higher. Nevertheless, we will take a cautiously-bullish approach for now.

NZD/USD — TECHNICAL OUTLOOK

From around the end of April, NZD/USD continues to drift lower, while trading below a short-term downside resistance line taken from high of April 29th. However, we may still class this move as a temporary correction, if the short-term upside support line drawn from the low of April 1st, continues to hold. Nevertheless, we would need to wait for a breakout through one of the lines first, before examining the next short-term directional move.

AS FOR TODAY’S EVENTS

During the Asian morning today, we got New Zealand’s employment report for Q1, which came in better than expected and helped Kiwi recover some of yesterday’s losses.

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