The slight dip in US equities to end the day shouldn’t be too much of a concern as it was bound to happen one of these days, but keeping an eye out for a potential end to the extraordinary bull-run is wise. If the last hour was simply an anomaly, the Aussie 200 could provide the potential to right the ship as it is on the border of its own month-old rising trend line. In addition, the NZ and Aussie data that is being released this evening could have the effect of boosting equities no matter how they turn out.
For instance, expectations for both releases are depressed, making the bar to clear them easily achieved. We are in a weird dynamic when it comes to economic releases lately: better than expected results make the masses feel good about the future, which could boost equities; also, worse than expected results make investors think that easier monetary policy will be on the way shortly, which could boost equities. Either way, if that weird dynamic plays out, it appears there is potential for the Aussie 200 to bounce off of its trend line regardless of what happens with the news releases this evening.
Figure 1:
Source: FOREX.com
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