The Reserve Bank of Australia will make a rate statement on March 2, at 5:30 MT time.
Markets ahead Fed’s meeting
- The Fed will hold its first meeting this year on Wednesday at 21:00 MT time. No major changes are expected as the Fed doesn’t want to repeat the taper tantrum of 2013, which refers to collective reactionary panic that triggered a spike in US Treasury yields. To get ready, we highly recommend you to read our short article: “What does the first Fed meeting of 2021 have for the USD?”
- Nasdaq climbed up due to the ongoing earnings season. Microsoft reported better-than-expected earnings and set a fresh record. Today Apple, Facebook, and Tesla will publish their earnings reports after the market closing. Check earnings calendar
- Australia’s consumer price index of 0.9% exceeded the market expectations of 0.7%. The AUD modestly reacted.
- Crude oil modestly advanced higher, while gold started the say on the back foot.
The most traded pair is trading sideways without any clear direction. The FOMC meeting this evening will set a fresh vector. If the pair manages to break above the 200-period moving average at 1.2190, the way up to the next resistance level at 1.2220 will be open. On the flip side, the move below yesterday’s low of 1.2130 will drive the pair down to the low of January 20 at 1.2100.
The pound has approached the upper line of the Bollinger Bands indicator at 1.3740. Therefore, we can expect the pullback to the downside as the pair shouldn’t break 1.3740 on the first try. Support levels are at the recent lows of 1.3650 and 1.3600.
USD/JPY is trading inside a descending channel. Since the upside is limited by the 50-period moving average and the upper trend line, we should expect further falling. The breakout below the low of January 21 at 103.35 will drive the pair lower to the key psychological mark of 103.00.
Finally, let’s talk about the aussie. AUD/USD is trading inside the symmetrical triangle. Since the market sentiment is risk-off, the pair is going to dip in the near term. The move below the 100-period moving average of 0.7730 will drive the pair to the next support of 0.7710.
Non-farm payrolls, the most awaited economic report, will be out on March 5 at 15:30 MT time.
Stock indices S&P 500 and Nasdaq are falling for seven days in a row. The New Zealand dollar skyrocketed to almost two-years highs. Fed’s Powell held a meeting yesterday and said that the central bank wouldn’t tight its easing policy anytime soon.
The giant chip maker exceeded analysts’ expectations. Even with a global GPU shortage!
OPEC will hold a meeting on March 4, where it should announce its decision on further oil output.
The risk-on is back on the market as investors focus on the projections for a stronger-than-expected economic rebound and the Fed’s pledge to prolong support for the rest of the year.