ASX

With USD/JPY holding above key support after the daily RSI reached its most oversold level since 1996, the 1-hour bull flag could tempt bulls. The ASX 200 also shows the potential for another leg higher, even if small.

The Reserve Bank of Australia (RBA) refrained from delivering a dovish shift following its August monetary policy decision, acknowledging that while the economic outlook remains highly uncertain, inflation remains above target and is proving persistent. It's still refusing to rule anything in or out.

An upside surprise on ISM services helped slow the bleeding on US stock markets and AUD/USD erase heavy losses ahead of todays RBA meeting. Nikkei futures rose 6% after its 12% plunge, which brings hopes for a bounce on the ASX 200 today.

A weak ISM manufacturing report a day after a dovish Fed meeting (and on the eve of NFP) was just the ticket for risk off on Wall Street. GBP traders ignored the BOE's cautious stance on rate cuts.

AUD/USD is under pressure while ASX 200 SPI futures are flying following Australia’s Q2 consumer price inflation report, reflecting surprisingly modest underlying inflationary pressures that all but extinguish the risk of another RBA rate hike this cycle.

After a hefty pullback, 19k looms for Nasdaq futures traders. Yet the higher timeframes suggests there could further downside even if it manages a bounce from nearby support. The ASX may fare better as its pullback is so far pale in comparison.

AUD/USD tracked copper prices lower for a sixth day, during its worst day in six weeks. Whilst both markets shows the potential for further losses, these may not be the ideal levels for bears to enter.

Another turbulent session on Wall Street saw the Dow Jones snap a 6-day winning streak, the VIX rise to a 12-week high and drag ASX 200 futures down accordingly.

The Hang Seng enjoyed its best day in three months. And with key support levels for the China A50 and ASX 200 holding, perhaps they can try to close the gap this week.

The next 24 hours will be the eight time in 10 years that a US CPI report lands on the same day as an FOMC meeting, and it has traders on tenterhooks. Today we look at USD/JPY, Nikkei 225 and the ASX 200.

Quiet trade (outside of euro pairs) allowed AUD/USD to drift higher despite the stronger USD. But with US CPI and FOMC looming, I doubt this is the ‘real move’ and further downside beckons.

Soft employment data saw Wall Street march to a record high on bets of a soft NFP report, and that should filter through to gains for the ASX 200 today.

The USD and yields were knocked swiftly lower on Monday as evidence of an economic slowdown in the US continued to build, helping AUD/USD to head for 76c despite the risk-off tone to the session.

Obvious month-end window dressing in Australia and United States stocks drove significant late session rallies on Friday, sending Australian ASX 200 futures surging 1.5% from the lows hit in Asia. But with commodity prices down heavily on Friday including iron ore, whether the gains can stick is questionable.

Downwardly revised GDP for the US in Q1 weighed on Wall Street indices ahead of a key inflation report, yet the ASX and Nikkei managed to bounce form their lows. We look at where we think they might head next.

Disinflationary forces in Australia have stalled with annual rates for headline and underlying inflation trending flat to higher, and well above the 2.5% midpoint of the RBA’s target. Not only does that weaken the case for rate cuts but means the next move from the RBA may be a hike.

Volatility levels were lower, as one would expect with the UK and US on a public holiday Monday. And that allowed AUD/USD to drift higher alongside the ASX 200 futures market, even if I do not fully trust the moves.