Wall Street stocks nose-dived yesterday after the US yield curve inverted for the first time since 2007, which is often seen as a precursor to a recession. Weak data out of China added to the malaise. The key Australian jobs report is due today

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index gave back all of the previous day’s gains, and more, yesterday amid gloomy global data and crashing US yields

  • The index closed below the 200-day moving average at 25,582 for the first time in 10 days. The 78.6% Fibonacci retracement of the June-July rally is at 25,120

  • US retail sales probably rose 0.3% m/m in July, the latest survey of economists shows. Industrial production likely increased 0.2% m/m in the same month.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index fell the most this year after GDP data confirmed the Germany economy contracted in the second quarter

  • The index closed below the 50% retracement level of the December-July rally at 11,470 for the first time since March 28

  • German GDP fell 0.1% q/q in Q2, the first negative reading in three quarters, data released yesterday showed. There are no major German or Euro-zone data releases scheduled for today.

 

AU200AUD Daily Chart

Source: OANDA fxTrade

  • The Australia200 index fell the most in seven sessions yesterday in response to weak data out of China. The index has risen slightly this morning ahead of the July jobs report

  • The index closed below the 100-day moving average at 6,472 for the first time since January 23

  • The Australian economy probably added 14,000 jobs in July, the latest forecasts from economists suggests. that’s a sharp increase from June’s 500 jobs. The unemployment rate is seen holding steady at 5.2%.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities.

Opinions are the authors — not necessarily OANDA’s, its officers or directors. OANDA’s Terms of Use and Privacy Policy apply. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD drops below 1.11 amid upbeat US data, trade concerns

EUR/USD is trading below 1.11 after robust US housing figures and solid consumer sentiment figures were published. Earlier, the common currency suffered from the concerns of new US tariffs on the EU.

EUR/USD News

GBP/USD down 100 pips after UK retail sales badly disappoint, amid USD strength

GBP/USD has plunged below 1.3050 after UK retail sales badly disappointed with a fall of 0.6% in December, on top of downward revisions. Odds of a BOE cut have risen.

GBP/USD News

Crypto market hyperspace mode On

The secondary actors of the crypto-sphere awaken and rally hard. Leading coins battle with greater resistance at the gates of a full bullish market. The only risk is an over-shoot, but that sentiment remains neutral.

Read more

Gold: Sustained move beyond 200-hour SMA sets the stage for further gains

Gold edged higher through the mid-European session on Friday and is currently placed near the top end of its weekly trading range, around the $1560 region.

Gold News

USD/JPY: Losing bullish momentum but retaining gains

Chinese encouraging data kept markets in risk-on mode at the beginning of the day. The US January Michigan Consumer Sentiment Index is seen at 99.3, matching December figure. USD/JPY holding at the upper end of its weekly range could correct lower.

USD/JPY News

Forex Majors

Cryptocurrencies

Signatures