Market Turmoil: Nasdaq Dips Over 1% Amidst Lingering Rate Hike Concerns.

In the ever-evolving drama of the US markets, it’s déjà vu as stocks face another round of losses, while the dollar gains strength and US government yields surge. The major indices have all donned a somber hue, with the Nasdaq taking the lead with a 1.15 percent drop, closely trailed by the S&P shedding 0.76% and the Dow decreasing by 0.52%. Adding fuel to the already blazing fire, the Federal Reserve Bank’s meeting minutes have underscored the prevailing belief—interest rates might yet rise. In this tumultuous backdrop, the dollar flexes its muscles, and apprehensions loom over Chinese demand, leading oil prices to continue their downward descent. WTI slides back under $80 per barrel, and gold finds itself below the $1,900 per ounce threshold.

Investors Brace for Data Deluge

As investors navigate through a challenging week, the FOMC meeting minutes from last night have done little to lift the prevailing gloom. The mood appears to be in favor of pessimism at the moment. However, a glimmer of hope awaits in the form of Australia’s fresh employment data, scheduled for release during the Asian session. This data offers a chance for investors to glimpse some positive news amidst the prevailing negativity. While the session ahead holds scarcity in Tier 1 data, both in the remaining US trading hours and in the European time zone, notable announcements await. The weekly Unemployment Claims report and the Philly Fed manufacturing index are poised to take the stage. Market players are bracing themselves for the potential positive impact these reports might have on the markets.

US Session Unveiled

The curtains were lifted in the aftermath of the July FOMC meeting, revealing a persistent concern amongst Jerome Powell and fellow policymakers at the Federal Reserve. The worry? Inflation might not ease its stride as it has in the past 10 to 12 months, especially given the recent uptick in the CPI and PPI stats for July. The Dollar Index (DXY) responded by soaring past the 103.50 mark during the preceding night. This upward surge only intensifies the argument for more rate hikes come the imminent September FOMC meeting.

Asia Session’s Next Moves

Gold’s glint might continue to dim, alongside other major currency pairs, as the demand for the US dollar stands its ground. The eagerly awaited Australian Labor Force report, slated for release in the morning, carries the potential to extend a helping hand to the Aussie, should employment trends remain positive.

Unveiling the Dollar Index (DXY)

Key News Events for the Day

• Unemployment Claims

Decoding D XY’s Day

Over the past fortnight, unemployment claims have registered higher-than-expected figures, a force that traditionally nudges the Dollar Index (DXY) towards a downward trajectory. Recent hawkish echoes from the FOMC meeting and the July upswing in US inflation have contributed to an abrupt surge in demand for the dollar. Another report reflecting elevated unemployment claims might serve as a faint yet short-lived bearish catalyst.

Insight from the Central Bank:

• The federal funds rate target range: 5.25% to 5.50%.
• A resolute commitment to restore inflation to the 2.0% target.
• A willingness to tweak monetary policy in the face of emerging risks.
• Consideration of various factors, including labor market conditions, inflation pressures, expectations, and international developments.
• The upcoming meeting: September 19-20, 2023.

Anticipating the Next 24 Hours: Medium Bullish

Australian Dollar (AUD) Outlook

Key News Events for the Day

• Labour Force Report

Predicting AUD’s Trajectory

As July sees the unemployment rate poised to rise to 3.6% and an anticipated addition of 14.6k new jobs, the labor force report holds a spotlight on the Australian job market. Should the news prove better than anticipated, the Australian dollar might receive a much-needed lift.

Insight from the Central Bank:

• Unchanging cash rate target: 4.10% for a second consecutive meeting.
• Inflation in Australia has peaked and is now descending but must find its way back into the target range.
• The possibility of further tightening of monetary policy looms.
• The next rendezvous: September 5, 2023.

Next 24 Hours Bias: Strong Bearish

Swiss Franc (CHF) on the Radar

Key News Events for the Day

• No Major News Events

CHF’s Dance of the Day

While the Swiss franc has valiantly resisted the recent surge of the US dollar, the USDCHF pair managed to breach the significant resistance at 0.8800. This crossover occurred in August, casting this currency pair into the limelight. Today, a slight ascent might be in store.

Insight from the Central Bank:

• SNB tightens monetary policy, elevating the policy rate to 1.75%.
• Inflation projections: 2.2% for 2023 and 2024, 2.1% for 2025. These numbers would be even higher sans the rate hike.
• Modest growth is anticipated for the year, with GDP projected at around 1.0%.
• Next meeting date: September 21, 2023.

Next 24 Hours Bias: Weak Bullish

Global Markets in Snapshot

Asian Stock Markets:

• Nikkei: -0.62%
• Shanghai Composite: -0.25%
• Hang Seng: -0.57%
• ASX: -0.69%

European Equities:

• DAX Futures: +0.14%
• CAC 40: -0.10%
• FTSE: -0.44%

US Stock Market:

• Dow Jones: -0.52%
• S&P 500: -0.76%
• Nasdaq 100: -1.15%

Commodities:

• Gold: $1892.91 (+0.05%)
• Silver: $22.45 (+0.29%)
• Brent Oil: $83.31 (-0.17%)
• WTI Oil: $79.16 (-0.28%)

News & Data Highlights

• (NZD) PPI Input (QoQ) (Q2) Actual: -0.2%, Forecast: 0.2%, Previous: 0.2% at 04:15.
• (JPY) Exports (YoY) (Jul) Actual: -0.3%, Forecast: -0.8%, Previous: 1.5% at 05:20.
• (AUD) Employment Change (Jul) Actual: -14.6K, Forecast: 15.0K, Previous: 32.6K at 07:00.
• (USD) Initial Jobless Claims Forecast: 240K, Previous: 248K at 18:00.
• (USD) Philadelphia Fed Manufacturing Index (Aug) Forecast: -10.0, Previous: -13.5 at 18:00.

GBPUSD: Navigating Market Trends

Exponential Moving Average (EMA)

• EMA 5: Standing at 1.2721, the 5-day EMA indicates a Buy sentiment.
• EMA 20: At 1.2715, the 20-day EMA reinforces the Buy indication.
• EMA 50: With a value of 1.2755, the 50-day EMA aligns with a Sell recommendation.

Simple Moving Average (SMA)

• SMA 5: The 5-day SMA indicates a Buy sentiment, showcasing 1.2721.
• SMA 20: Supporting the Buy stance, the 20-day SMA is recorded at 1.2707.
• SMA 50: The 50-day SMA stands at 1.2757, signifying a Sell indication.

Relative Strength Index (RSI)

Calculated over 14 days, the RSI reads 51.92, suggesting a Positive signal.

Stochastic Oscillator

The Stochastic Oscillator’s %K value suggests a Positive condition.

Resistance And Support Levels

• Resistance: Identified at 1.2760.
• Support: Observed at 1.2677.

Summary And Trade Suggestions

Based on technical analysis, GBP/USD presents a Buy outlook. Traders may find a long position tempting, given the indicators, moving averages, and oscillators.

Trade Suggestion:

• Entry Point: 1.2778
• Take Profit: 1.2870
• Stop Loss: 1.2714

EURUSD: Deciphering Market Dynamics

Exponential Moving Average (EMA)

• EMA 5: Standing at 1.0988, the 5-day EMA indicates a Sell signal.
• EMA 20: At 1.0924, the 20-day EMA signals a Sell sentiment.
• EMA 50: With a value of 1.0966, the 50-day EMA suggests a Sell indication.

Simple Moving Average (SMA)

• SMA 5: The 5-day SMA showcases a value of 1.0887, reinforcing the Sell recommendation.
• SMA 20: The 20-day SMA, at 1.0936, also supports a Sell sentiment.
• SMA 50: Affirming a Sell indication, the 50-day SMA registers at 1.0970.

Relative Strength Index (RSI)

The 14-day RSI reads 36.65, indicating a Negative signal.

Stochastic Oscillator

The Stochastic Oscillator’s %K value suggests a Negative stance.

Resistance And Support Levels

• Resistance: Observed at 1.0909.
• Support: Identified at 1.0859.

Summary And Trade Suggestions

In summary, the technical analysis of EURUSD points towards a Sell sentiment. Considering the indicators, moving averages, and oscillators, it seems favorable for traders to enter a short position.

Trade Suggestion:

• Entry Point: 1.0841
• Take Profit: 1.0773
• Stop Loss: 1.0897

AUDUSD: Gauging Currency Market Trends

Exponential Moving Average (EMA)

• EMA 5: Standing at 0.6419, the 5-day EMA indicates a Sell signal.
• EMA 20: At 0.6477, the 20-day EMA signals a Sell sentiment.
• EMA 50: With a value of 0.6553, the 50-day EMA suggests a Sell indication.

Simple Moving Average (SMA)

• SMA 5: The 5-day SMA showcases a value of 0.6420, reinforcing the Sell recommendation.
• SMA 20: The 20-day SMA, at 0.6486, also supports a Sell sentiment.
• SMA 50: Affirming a Sell indication, the 50-day SMA registers at 0.6571.

Relative Strength Index (RSI)

The 14-day RSI reads 29.99, indicating a negative signal.

Stochastic Oscillator

The Stochastic Oscillator’s %K value suggests a Neutral stance.

Resistance And Support Levels

• Resistance: Observed at 0.6447.
• Support: Identified at 0.6379.

Summary And Trade Suggestions

In summary, the technical analysis of AUDUSD points towards a Sell sentiment. Considering the indicators, moving averages, and oscillators, it seems favorable for traders to enter a short position.

Trade Suggestion:

• Entry Point: 0.6336
• Take Profit: 0.6248
• Stop Loss: 0.6393

USDJPY: Unveiling Foreign Exchange Insights

Exponential Moving Average (EMA)

• EMA 5: Standing at 146.06, the 5-day EMA indicates a Buy signal.
• EMA 20: At 145.04, the 20-day EMA signals a Buy sentiment.
• EMA 50: With a value of 143.65, the 50-day EMA suggests a Buy indication.

Simple Moving Average (SMA)

• SMA 5: The 5-day SMA showcases a value of 146.03, reinforcing the Buy recommendation.
• SMA 20: The 20-day SMA, at 144.98, also supports a Buy sentiment.
• SMA 50: Affirming a Buy indication, the 50-day SMA registers at 143.15.

Relative Strength Index (RSI)

The 14-day RSI reads 73.36, indicating a Buy signal.

Stochastic Oscillator

The Stochastic Oscillator’s %K value suggests a Neutral stance.

Resistance And Support Levels

• Resistance: Observed at 146.51.
• Support: Identified at 145.84.

Summary And Trade Suggestions

In summary, the technical analysis of USDJPY points towards a Buy sentiment. Considering the indicators, moving averages, and oscillators, it seems favorable for traders to enter a long position.

Trade Suggestion:

• Entry Point: 146.74
• Take Profit: 147.58
• Stop Loss: 146.15

FTSE 100: Navigating Equity Markets

Exponential Moving Average (EMA)

• EMA 5: At 7342.25, the 5-day EMA indicates a Sell signal.
• EMA 20: Sitting at 7442.05, the 20-day EMA signals a Sell sentiment.
• EMA 50: With a value of 7505.92, the 50-day EMA suggests a Sell indication.

Simple Moving Average (SMA)

• SMA 5: A value of 7335.2 reinforces the Sell recommendation for the 5-day SMA.
• SMA 20: The 20-day SMA at 7475.83 also supports a Sell sentiment.
• SMA 50: Registering at 7554.62, the 50-day SMA affirms a Sell indication.

Relative Strength Index (RSI)

Calculated over 14 days, the RSI reads 27.34, signifying a Sell signal.

Stochastic Oscillator

The Stochastic Oscillator’s %K value suggests a Neutral stance.

Resistance And Support Levels

• Resistance: Observed at 7340.5.
• Support: Identified at 7288.1.

Summary And Trade Suggestions

Summing up the technical analysis of FTSE 100, a Sell sentiment emerges. Given the indicators, moving averages, and oscillators, a short position might be attractive for traders.

Trade Suggestion:

• Entry Point: 7244.7
• Take Profit: 7101.9
• Stop Loss: 7344.0

WTI CRUDE OIL: Probing Energy Markets

Exponential Moving Average (EMA)

• EMA 5: At 80.23, the 5-day EMA indicates a Sell signal.
• EMA 20: With a value of 80.20, the 20-day EMA signals a Sell sentiment.
• EMA 50: The 50-day EMA suggests a Buy indication at 77.53.

Simple Moving Average (SMA)

• SMA 5: The 5-day SMA at 80.57 reinforces the Sell recommendation.
• SMA 20: Supporting a Sell sentiment, the 20-day SMA stands at 80.99.
• SMA 50: Affirming a Buy indication, the 50-day SMA registers at 76.09.

Relative Strength Index (RSI)

The 14-day RSI reads 49.36, signifying a Buy signal.

Stochastic Oscillator

The Stochastic Oscillator’s %K value suggests a Negative stance.

Resistance And Support Levels

• Resistance: Observed at 80.80.
• Support: Identified at 78.61.

Summary And Trade Suggestions

To summarize the technical analysis of WTI Crude Oil, a Sell sentiment is observed. Given the indicators, moving averages, and oscillators, a short position seems favorable.

Trade Suggestion:

• Entry Point: 77.18
• Take Profit: 73.75
• Stop Loss: 79.28

SILVER: Unveiling Precious Metal Insights

Exponential Moving Average (EMA)

• EMA 5: At 22.54, the 5-day EMA indicates a Buy signal.
• EMA 20: The 20-day EMA signals a Sell sentiment at 22.71.
• EMA 50: With a value of 23.19, the 50-day EMA suggests a Sell indication.

Simple Moving Average (SMA)

• SMA 5: The 5-day SMA at 22.53 reinforces the Buy recommendation.
• SMA 20: The 20-day SMA, standing at 22.62, also supports a Sell sentiment.
• SMA 50: Affirming a Sell indication, the 50-day SMA registers at 23.44.

Relative Strength Index (RSI)

The 14-day RSI reads 39.46, indicating a Negative signal.

Stochastic Oscillator

The Stochastic Oscillator’s %K value suggests a Neutral stance.

Resistance And Support Levels

• Resistance: Observed at 22.79.
• Support: Identified at 22.43.

Summary And Trade Suggestions

In summary, the technical analysis of silver points towards a Sell sentiment. Considering the indicators, moving averages, and oscillators, a short position might be favorable.

Trade Suggestion:

• Entry Point: 22.29
• Take Profit: 21.96
• Stop Loss: 22.55

LITECOIN: Evaluating Cryptocurrency Trends

Exponential Moving Average (EMA)

• EMA 5: At 76.39, the 5-day EMA indicates a Sell signal.
• EMA 20: Signaling a Sell sentiment, the 20-day EMA stands at 80.03.
• EMA 50: With a value of 83.24, the 50-day EMA suggests a Sell indication.

Simple Moving Average (SMA)

• SMA 5: The 5-day SMA at 76.36 reinforces the Sell recommendation.
• SMA 20: The 20-day SMA, registering at 80.95, also supports a Sell sentiment.
• SMA 50: Affirming a Sell indication, the 50-day SMA stands at 83.13.

Relative Strength Index (RSI)

The 14-day RSI reads 18.45, signifying a Sell signal.

Stochastic Oscillator

The Stochastic Oscillator’s %K value suggests a Neutral stance.

Resistance And Support Levels

• Resistance: Observed at 79.26.
• Support: Identified at 73.31.

Summary And Trade Suggestions

In summary, the technical analysis of Litecoin points towards a Sell sentiment. Considering the indicators, moving averages, and oscillators, a short position might be favorable.

Trade Suggestion:

• Entry Point: 71.99
• Take Profit: 67.26
• Stop Loss: 76.00