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
Mixed
GBP/USD
Mixed
USD/JPY
Bearish
Gold
Bearish
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
Oil - US Crude
Mixed
Bitcoin
Mixed
More View more
Real Time News
  • Commodities Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Gold: 0.53% Silver: 0.35% Oil - US Crude: 0.20% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/7C3JtRpJc2
  • Fed Funds Futures are pricing a 7.7% probability for a rate cut at next month's FOMC meeting, down from 57.7% on October 3rd https://t.co/0YSVotzeMk
  • RT @ZabelinDimitri: - #USDBRL reaching edging closer to retesting 14-month high - Recent price action suggesting upside momentum is waning…
  • 🇳🇿 NZD BusinessNZ Manufacturing PMI (OCT), Actual: 52.6 Expected: N/A Previous: 48.8 https://www.dailyfx.com/economic-calendar#2019-11-14
  • 🇳🇿 NZD BusinessNZ Manufacturing PMI (OCT), Actual: 52.6 Expected: N/A Previous: 48.4 https://www.dailyfx.com/economic-calendar#2019-11-14
  • Crude #oil prices remain trapped in the sideways consolidation that has defined price action since October 31. Get your market update from @CVecchioFX on crude oil here: https://t.co/v5OKIqX6Z1 #OOTT https://t.co/hzbfxcH6eN
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.57%, while traders in France 40 are at opposite extremes with 84.14%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/czS6J7TV5z
  • Just a reminder, the White House's deadline on the auto tariff decision is due today after the extension. Stay on Twitter watch. Trump seems to like make big calls shortly after the close...
  • Heads Up:🇳🇿 NZD BusinessNZ Manufacturing PMI (OCT) due at 21:30 GMT (15min), Actual: N/A Expected: N/A Previous: 48.4 https://www.dailyfx.com/economic-calendar#2019-11-14
  • RT @ABehsudi: Commerce is expected to extend a limited, temporary waiver for blacklisted firm Huawei, notwithstanding any last-minute direc…
AUD, ASX 200 Falter on Turnbull. Emerging Markets May Hurt Stocks

AUD, ASX 200 Falter on Turnbull. Emerging Markets May Hurt Stocks

2018-08-23 05:00:00
Daniel Dubrovsky, Analyst
Share:

Asia/PacificMarket Wrap – Malcolm Turnbull, US Tariffs, Emerging Markets, AUD, USD, JPY

  • Most Asia/Pacific benchmark stocks traded pessimistically post FOMC minutes as mood soured
  • Threat of Malcolm Turnbull resignation ahead weighed against AUD/USD & ASX 200 prices
  • Potential sanctions from US on South Africa may hurt emerging markets, pulling stocks down

Check out our 3Q forecasts for equities to see where they may go in the DailyFX Trading Guides page

Asia/Pacific benchmark stocks traded mostly lower on Thursday, echoing last minute declines on Wall Street where the S&P 500 inched closer to potentially experiencing a reversal. There, the FOMC meeting minutes reiterated support for another rate hike ‘very soon’ while highlighting some risks to the outlook. Prospects of tightening global credit conditions likely weighed on shares.

Political uncertainty continued depressing both the Australian Dollar and the ASX 200. Over the past few days, Prime Minister Malcolm Turnbull and his leadership have been coming under pressure. This was further amplified today when three more cabinet ministers resigned from his government. Mr. Turnbull noted that he would step aside in the event his rivals gather enough signatures to prove his lack of control.

China’s Shanghai Composite declined about 0.34% heading into Thursday’s close as the US imposed $16b in additional tariffs on them and they equivalently retaliated. In South Korea, the KOSPI also fell as sentiment deteriorated. However, reports that institutions sold around 49b in Korean Won of stocks led the benchmark index lower.

The Nikkei 225 on the other hand remained resilient, rising about a quarter of a percentage point. It was led higher by the consumer discretionary and information technology sectors. The general pullback in market mood lifted the anti-risk Japanese Yen. Meanwhile, the US Dollar edged higher. It often benefits from haven bids when stocks turn lower given its status as the world’s reserve currency.

Over the remainder of the day, keep an eye on emerging market stocks. Earlier this session, President Donald Trump asked Secretary of State Mike Pompeo “to closely monitor South African land and farm seizures and expropriations”. This raised worries the world’s largest economy could impose sanctions against the nation and USD/ZAR rose. Ahead, declines in the MSCI Emerging Markets ETF (EEM) could weigh against shares in the developed economies as a result. This may offer more room for Yen gains.

Find out what the #1 mistake that traders make is and how you can fix it!

MSCI Emerging Markets ETF Technical Analysis

The EEM has just clocked in its longest daily consecutive winning streak since early March. The ETF stopped its latest ascent just under the August 10th high at 43.33 which may be acting as immediate resistance. In the event emerging markets sour over the next 24 hours, we may see it pullback and head down to near the June/July 2017 lows between 41.13 and 40.90. On the other hand, a push higher exposes the long-term descending trend line from January which is keeping the dominant downtrend intact.

AUD, ASX 200 Falter on Turnbull. Emerging Markets May Hurt Stocks

Chart created in TradingView

FX Trading Resources:

--- Written by Daniel Dubrovsky, Junior 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.