We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Bullish
USD/JPY
Bullish
Gold
Mixed
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Bullish
More View more
Real Time News
  • RT @vtchakarova: British PM Johnson says won't negotiate further Brexit delay with EU. The EU also made it very clear (see Juncker’s recent…
  • How will the Trump impeachment process affect #forex and US stocks? Find out from Rupert Osborne, @IG_US, only on Trading Global Markets #podcast. Missed the episode? Read up here: https://t.co/1Bgo0Fl5CV https://t.co/BRNvqHVjYY
  • RT @bbclaurak: I'm told that's the advice from Cabinet Secretary - legal default is still leaving at end of this month, because they can't…
  • RT @bbclaurak: No 10 claims chances of no deal go up if Letwin passes - 'the govt will step up no deal preparations immediately as the risk…
  • RT @NSoames: I shall vote against The Letwin amendment and for the Deal
  • RT @Robert___Harris: On the eve of tomorrow’s rushed Commons vote I keep thinking of the journalist Phillip Knightley’s memo to the executi…
  • The $AUD has wilted as markets price in further rate cuts even as the OCR hovers at just 1%. Those cuts may come, but labor market strength may have to wane first. Get your market update from @DavidCottleFX here: https://t.co/h1Uvm8ogXh https://t.co/M1IP0jqh41
  • The inside bar pattern occurs regularly within the financial markets. Incorporating the inside bar strategy within a trading system can enhance a trader’s market analysis technique. Find out how you can use it from @WVenketas here: https://t.co/E3EWOYTYNw https://t.co/ZCT4pwc6nv
  • Greed has proven to be a hindrance more than assistance for traders. How does greed impact your trading? Find out from @RichardSnowFX here: https://t.co/aT8TZjlFqP https://t.co/C4vrTm69sE
  • Central bank independence has several advantages and disadvantages. Find out what they are in-depth with @MartinSEssex here: https://t.co/wVFXbbTxf1 https://t.co/WkwZK6wtzy
USD Recovery Extends, Apple Shares Eye Support on Sell Downgrade

USD Recovery Extends, Apple Shares Eye Support on Sell Downgrade

2019-07-08 23:00:00
Daniel Dubrovsky, Analyst
Share:

Asia Pacific Market Open Talking Points

  • US Dollar extends advance on cooling of aggressive Fed rate cut bets
  • S&P 500 fell, Apple shares left vulnerable on Rosenblatt downgrade
  • Pro-risk AUDUSD and NZDUSD may fall if Asia equities aim lower

Not sure where equities are heading next? We recently released the third quarter equities fundamental and technical forecast!

US Dollar Keeps Climbing, Apple Shares Sink on Rosenblatt Sell Downgrade

The US Dollar extended gains from Friday in a relatively quiet trading session during the beginning of this week. The bulk of economic event risk for the currency is due later on with items such as a testimony from Fed Chair Jerome Powell and the minutes of the June FOMC meeting due to cross the wires later this week. As such, markets likely echoed on recent fundamental developments.

One of those was last week’s solid US jobs report, which resulted in the markets pricing out chances of a 50 basis point cut this month. Over the past 24 hours, we saw local front-end government bond yields rally and the S&P 500 decline as it ended the day 0.48% to the downside. This reflected the cautious cooling in bets of loser credit conditions from the United States as sentiment soured despite a US-China trade truce.

While this contributed to the sour mood on Wall Street, Apple shares were left particularily vulnerable after Rosenblatt Securities downgraded the stock to a “sell” from “neutral”. Prior to market open, the research and investment brokerage firm did so on expectations of a “fundamental deterioration” in the next six to twelve months. Apple shares gapped 1.67% to the downside at open, compared to -0.35% for the S&P 500.

Apple Stock Technical Analysis

The drop in Apple shares on Monday solidified near-term resistance around 204.50 as prices struggle climbing above the rising trend line from June 2016. Immediate support appears to be at 195.71 which if broken, exposes March 2018 highs at 183.50. Otherwise, resuming the uptrend from late May opens the door to eventually testing the April high at 215.31.

Apple Stock Daily Chart

USD Recovery Extends, Apple Shares Eye Support on Sell Downgrade

*Charts Created in TradingView

Tuesday’s Asia Pacific Trading Session

Another relatively quiet Asia Pacific trading session ahead of the aforementioned event risk places the focus for foreign exchange markets on market mood which is looking sour. S&P 500 futures are pointing notably lower heading into Tuesday trade. This may result in a rosy session for the anti-risk Japanese Yen at the expense of the sentiment-linked Australian and New Zealand Dollars.

FX Trading Resources

--- Written by Daniel Dubrovsky, Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.