This is what you need to know to trade today Tuesday, August 17:
The market mood has soured amid new Chinese techlash, COVID fears and uncertainty ahead of Fed Chairman Poweill’s speech and US retail sales later in the day. Antipodean currencies are hit the hardest, while gold benefits from falling yields and cryptocurrencies stabilize.
Risk: Markets are suffering another “hangover” after record highs in the S&P 500 and other US stock indices. China is moving against “idle culture,” a call that is seen as hitting video games and other activities, as part of its reaction against powerful tech companies. Asian stocks are struggling and dragging others lower.
COVD-19 cases continue to rise in the United States and weigh on the recovery, but the dollar is winning from safe-haven cash flows across the board.
The coronavirus is hitting the currencies of the antipodes hard. The AUD/USD It has fallen below 0.73 after the minutes of the Reserve Bank of Australia meeting revealed uncertainty about the economy following the covid-related lockdowns.
The NZD / USD has dropped more than 1% and below 0.70 after a case of coronavirus in Auckland prompted the government to order a three-day nationwide lockdown, with longer restrictions in several regions.
The GBP/USD it is slipping toward 1.38 amid a strong dollar and amid a mostly upbeat jobs report. The UK unemployment rate fell to 4.7% in June and wages are up 8.8% year-on-year. Unemployment claims disappointed with a minor drop of -7,800.
The EUR/USD is approaching 1.17 in response to risky mood. Growth is expected to confirm at 2% in the second quarter.
It is expected that US retail sales show a minor drop in overall consumption volume and a minor rise in underlying measures in July after strong figures in June. Investors are looking at the impact of rising inflation and the Delta variant of covid on buyers.
See: US Retail Sales Preview: Dollar Driver? Low expectations, market mood points to clear reaction
Jerome Powell, Chairman of the Federal Reserve, he is scheduled to speak at the end of the day and could refer to the time when the central bank will reduce its bond purchase plan. Central bank officials have been moving to support an announcement as early as September and both CNBC and the WSJ moved toward such a move. That has also been supporting the US dollar.
The oro It has been extending its rally, hitting $ 1,792 as US Treasury yields fell, making the unperforming precious metal more attractive.
cryptocurrencies: Bitcoin is trading below $ 46,000, retreating from the highs, and Ethereum has stabilized around $ 3,150.
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