Last week, there were sharp swings in USDJPY, a decline in oil prices, and a surge in Tesla stock. What's next?
Market updates on August 8
- During the Asian trading session, the People's Bank of China set the reference rate for USD/CNY at 7.0039. This is the highest level in a decade, but not as high as analysts expected it to be. As a result, USD/CNH fell towards the support at 7.0650 right after the test of the resistance at 7.0977 level. If bears continue to pull the pair down, the current support may be broken, and the next one will lie at 7.0420. In case of a less risky environment, the pair will retest the 7.0977 level.
- USD/JPY has been consolidating in the 106-106.27 range after the bullish surge towards the 106.27 level. From the upside, pay attention to the resistance levels at 106.63 and 107.05. On the other hand, if bears take control over the market, the 106 level may be broken and the next support will lie at 105.52. After that, keep an eye on the 105.3 level.
- AUD/USD has risen on the softer risk sentiment. After the crossover of the price with the 0.6772 level (23.6% Fibo) on H4, bulls will have a chance to push the pair higher to the 0.68-0.6819 support levels. In case of risk aversion, the support at 0.6752 may be broken and the retest of the 0.6676 level may be possible.
Geopolitical factors and inflation remain the main drivers of financial markets. Let’s see how to use that in trading!
Have a look at the key financial instruments on Monday, February 28. Geopolitics is currently on all news frontlines. Western nations escalated sanctions on Russia for the invasion of Ukraine.
The US Bureau of Economic Analysis will publish Core Personal Consumption Expenditures (PCE) on May 27 at 15:30 GMT+3.
The United States will publish the Preliminary GDP on Thursday, May 26, at 15:30 GMT+3.
The Reserve Bank of New Zealand will publish a monetary policy report and make an update on the interest rate on May 25, at 05:00 GMT+3.