Asia Pacific Market Open Talking Points
- Currencies and equities diverged today from a sentiment perspective
- S&P 500[1] hits record high, US Dollar[2] rose despite more Fed rate cut bets
- AUD/USD[3] drops to rising channel support, may rise on Australian CPI
Trade all the major global economic data live as it populates in the economic calendar and follow the live coverage for key events listed in the DailyFX Webinars[4]. We’d love to have you along.
FX News Tuesday
The highly liquid US Dollar and anti-risk Japanese Yen[5] were the best-performing majors on Tuesday. These currencies can do well during times of market pessimism, yet the S&P 500 closed at a record high as it rose over 0.8% in its best day in over three weeks. Better-than-expected earnings reports[6] sent shares from Twitter (+15.71%), Lockheed Martin (+5.66%) and Hasbro (+14.23%) rallying.
However, US front-end government bond yields fell and fed funds futures showed an increase in dovish Fed monetary policy expectations. Meanwhile, the sentiment-linked Australian, Canadian and New Zealand Dollars weakened. Ahead of the Bank of Canada rate decision later in the day, trader position hints of a bearish bias in USD/CAD[7].
Want to learn more about how sentiment readings may drive the Canadian Dollar[8]? Tune in today at 00:00 GMT for a livesession as I cover how sentiment can be used to identify prevailing market trends[9]!
Taking a closer look at this trading dynamic also reveals that
