Quick Recap
A big US dollar move overnight smashed the Aussie (0.7761) which was already under pressure after revelations yesterday that a rate cut is on the RBA’s agenda – perhaps as soon as next Tuesday. The Kiwi (0.7260) took it on the chin and Gold ($1,256) was much lower.
Strangely the Euro (1.1322) managed to hold its ground while everything else in forex land, including GBP (1.5063) was buffetted by the US dollar.
Oil dipped below $44 a barrel but managed to rally back a little and closed at $44.43.
On stocks the sensationally low print of jobless claims (down 43,000 to 264,000) seemed to help stocks which were higher.
Here’s the Scoreboard:
- Dow Jones up 1.27%, 219 points to 17,417
- Nasdaq up 0.95%, 44 points to 4,683
- S&P up 0.89%, 18 points after testing the support in the 1,985/90 zone with a low of 1989 overnight. It has closed at 2,021
It means that the outlook for the ASX, which did really well yesterday all things considered, is looking bright gain. SPI 200 futures for March are up 53 this morning at 5,556
A quick chart
AUDUSD – the lowest level since July 2009 was hit overnight with a low around 0.7720. It’s hard to catch a falling knife but sentiment is getting bearish now.
0.7695 is the 1.382% projection of the last wave in what could look like a 5 wave decline. So I’m inclined to buy with a stop below.
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