This is what you need to know to trade today Thursday, August 12:
The record advance on Wall Street did not inspire Asian traders, as the region’s indices traded in the red amid widening China’s regulatory brakes and escalating tensions over the impact of the Delta variant on growth. economic. China published a five-year plan calling for more regulation of companies while Beijing pursues a crackdown, according to Bloomberg. Futures linked to the S&P 500 Index are also trading marginally lower on the day.
The US dollar lags across the board, consolidating the decline led by US inflation, while Treasury yields also lick their wounds. The moderation on the Fed’s downsizing expectations and the strong auction of US bonds knocked out yields and the dollar on Wednesday.
The softening of the US Consumer Price Index (CPI) in July, especially in core figures, supported the Fed’s view that inflation is transitory, while reducing concerns about an imminent pullback in support for the Fed monetary policy.
The gold seeks to extend previous bounce above $ 1,750. The WTI It is lateralized around $ 69, preserving most of Wednesday’s advance after the White House said it would not ask US producers to increase crude production.
In general, most of the large pairs are stuck in narrow trading ranges amid the dollar’s downward consolidation, awaiting data from the US Producer Price Index (PPI) and weekly jobless claims for a new trade boost.
The Antipodes remain on the defensive, with the AUD/USD bearing the brunt of COVID lockdown extensions across Australia, currently trading at lows near 0.7360, while Kiwi it also flirts with lows around 0.7030, despite rising inflation expectations from RBNZ. New Zealand Prime Minister Jacinda Ardern said the nation is simply not in a position to fully reopen just yet.
The EUR/USD remains higher, seeking to extend the recovery above 1.1750, while the GBP/USD it preserves its range below 1.3900 amid looming Brexit concerns and bear market mood, which is weighing on the pound. GBP traders remain on the defensive after critical preliminary UK second quarter GDP data, which is up 4.8% as expected.
Meanwhile, the USD/JPY it remains capped below 110.50 amid weaker Treasury yields. USD / CAD hovering around 1.2500, modestly flat on the day.
The cryptocurrencies remain in the red, with Bitcoin holding its range around $ 45,000. The SEC Chairman highlights that crypto and DeFi trading platforms may be violating securities laws.
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