NZD Outperforms, EUR/GBP Back to Key Support, AUD Awaits CPI - US Market Open
- NZD Outperforms, AUD/NZD Heads Lower
- Euro Watching for Italian Politics
- Traders Continue to Buy the GBP Dip
Equities: A turnaround Tuesday for markets this morning with EU bourses posting modest gains. Encouraging vaccine news from Regeneron helped underpin gains with the company stating that their antibody drug cocktail prevented 100% of symptomatic infections. Going forward, while earnings will remain in focus with Microsoft reporting after the closing bell (implied move = 3.5%).
Euro Stoxx 50 Sector Breakdown
Outperformers: Energy (2.7%), Consumer Discretionary (1.9%), Basic Materials (1.8%)Laggards: Utilities (0.1%), IT (0.16%), Healthcare (0.2%)
Intra-day FX Performance
NZD: The Kiwi is on the front foot yet again as with related flows continue to underpin. AUD/NZD has now broken below 1.0700 with eyes now for a test of 1.0650. EUR: Italian politics is in focus with PM Conte announcing his resignation. However, the next PM, may indeed be Conte. Find out more here. GBP: Markets continue to hold a buy the dip view with GBP back above 1.3700, while EUR/GBP tests key support at 0.8860. The UK jobs report was ignored by GBP with focus remaining on the vaccine race.
Chart in Focus: AUD/NZD Continues to Track Bond Spreads
Commodities: Across the precious metals complex, with little in the way of news flow gold has traded in a narrow range. Brent and WTI crude futures are slightly firmer as oil prices track risk sentiment higher.
Looking ahead: Little on the docket with the US Consumer Confidence data ahead. However, for AUD traders, the CPI data (00:30GMT) will be closely watched.
REPORTS OF NOTE
- “S&P 500, Nasdaq 100 Pushing Onward; Watch FANMAG Breakout” by Paul Robinson, Strategist
- “Italian PM Conte Resigns, What Happens Next? - Euro Outlook” by Justin McQueen, Market Analyst
- “Bitcoin (BTC) Continues to Struggle While Ethereum (ETH) Comes Off a Fresh All-Time High”by Nick Cawley, Strategist
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