Technical Analysis Report - 18 August 2022

18 Aug

Technical Analysis Report – 18 August 2022

/ CSFX Analytics

FED INDICATES HIGHER INTEREST RATE TO COUNTER INFLATION IN FUTURE

Asia Pacific shares fell on Thursday. The Shanghai Composite is down 0.53% at 3,275.04. Overall, the Singapore MSCI is down 0.27% at 300.55. Over in Hong Kong, the Hang Seng Index is down 0.94% at 19,717.00. In Japan, the Nikkei 225 is down 0.86% at 28,940.00, while the Topix index is down 0.80% at 1989.50. South Korea’s Kospi is down 0.33% at 2,508.05. Australia S&P/ASX 200 down 0.21% at 7112.80.

Top News of the Day:

The dollar was on the front foot on Thursday after minutes from the Federal Reserve’s July meeting pointed to U.S. interest rates staying higher for longer to bring down inflation.

The greenback gained most against the Antipodeans, especially the Aussie, which was dragged down as weaker-than-expected wage growth weighed on Australia’s rates outlook.

Market Summary as per 17/08/2022:

European equities Wednesday closing. The DAX futures contract in Germany traded down 2.04% at 13,626.71, CAC 40 futures down 0.97% at 6528.33 and the UK 100 futures contract in the U.K. down 0.27% at 7,515.76.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 0.50% at 33980.33. The S&P 500 down 0.72% at 4274.03 and the Nasdaq 100 down 1.21% at 13470.86, NYSE closes down 0.71% at 15734.11

Top Market News Today:

In the Forex market, GBPUSD down 0.39% at 1.2000. The USDJPY up 0.23% at 135.333. The USDCHF up 0.21% at 0.9536. EURUSD down 0.27% at 1.0150, EUR/GBP up 0.16% at 0.8460. The USD/CNY up 0.19% at 6.7940 at the time of writing.

In the Commodity market U.S. Gold futures down 0.01% at $1,761.19. Elsewhere, Silver futures down 0.75% at $19.616 per ounce, Platinum down 0.86% at $917.50 per ounce, and Palladium down 0.35% at $2134.50.

Crude Oil up on Thursday; Brent Crude Oil up 0.55% at $93.43 per barrel while U.S. West Texas Intermediate (CLc1) up 0.58% at $87.30.

In the Cryptocurrency Markets, Bitcoin at 23335.00 up 0.45%, Ethereum up 0.55% at 1838.56, Litecoin at 60.63 up 0.38%, at the time of writing.

Top Market Segment to Watch Out Today:

TESLA: Electric auto giant Tesla (NASDAQ:TSLA) said on Thursday it has slashed the delivery waiting time for its Model 3 and Model Y cars in China as it ramps up output at its Shanghai plant after upgrading production lines.

The waiting time for the rear-wheel drive Model Y sport utility vehicle is now four to eight weeks, while buyers of other versions of the SUV and Model 3 sedans need to wait for 12 to 20 weeks.

Economic News:

US: The United States and Taiwan have agreed to start trade talks under a new initiative to reach agreements with “economically meaningful outcomes”, with a Taiwan official saying China’s “economic coercion” would be also be discussed.

Washington and Taipei unveiled the U.S.-Taiwan Initiative on 21st-Century Trade in June, just days after the Biden administration excluded the Chinese-claimed island from its Asia-focused economic plan designed to counter China’s growing influence.

The office of the U.S. Trade Representative said the two sides had “reached consensus on the negotiating mandate” and it was expected that the first round of talks will take place early this autumn.

Taiwan’s top trade negotiator John Deng told reporters in Taipei on Thursday he hoped talks could start next month, and that this could one day lead to a free trade deal the island has long sought with the United States.

The negotiating mandate released along with the announcement said the United States and Taiwan have set a robust agenda for talks on issues like trade facilitation, good regulatory practices, and removing discriminatory barriers to trade.

Eurozone: The euro zone inflation outlook has failed to improve since a July rate hike, European Central Bank board member Isabel Schnabel said, suggesting she favours another large interest rate increase next month even as recession risks harden.

The central bank for the 19-country bloc surprised investors with a 50-basis-point rate hike last month fearing that inflation, now approaching double digit territory, was at risk of getting entrenched.

That move was not enough to alter the inflation outlook, however, and even a recession on its own would not be enough to tame price pressures, said Schnabel, the head of the ECB’s market operations.

A rate hike in September is seen a done deal with policymakers split between 25 and 50 basis points. Schnabel’s comments suggest she is likely to advocate a bigger increase.

Top Economic Releases Today:

EURO ZONE CPI (YoY) (Jul) today at 5:00 this time estimated 8.9%, previously which was 8.6%.
U.S. Initial Jobless Claims today at 8:30 this time estimated 265K, previously which was 262K.
NEW ZEALAND Trade Balance (YoY) (Jul) today at 18:45 previously which was -10,510M.
CANADA RMPI (MoM) (Jul) today at 8:30 previously which was -0.10%.
JAPAN National CPI (MoM) today at 19:50 previously which was 0.00%.