October 27, US stock indexes closed lower, as a jump in the yield of Treasury bonds, caused a sale in the protective sectors, such as real estate and utilities. The yield on 10-year Treasury bonds rose 5 basis points to 1.84% on Thursday. After the latest economic data from the United States, have increased the chances of raising interest rates by the Federal Reserve, in the near future. At the same time, investors analyzed mixed profit results. Revenues were not so impressive to become a catalyst for market growth, but still helped the market, remain close to historical highs. The S & P 500 fell by -6.39 points, or -0.30%, closing at 2,133.04. The Dow Jones Industrial Average finished with a decline of -29.65 points, or -0.16%, at 18.169.68. The Nasdaq Composite fell -34.29 points, or -0.65%, to close at 5,215.97. October 28, the growth in the yield of ten-year sovereign bonds, also had a negative impact on Asian stock indexes and dragging them out into negative territory. Positive dynamics was observed only in the Japanese market, which was growing against the background of a weaker yen and domestic statistics. During the Asian session, the yield on US 10-year US Treasury bonds continued to grow, adding two basis points to 1.86 percent. Signs of improvement in the global economy drive rumors that central banks will abandon ultra-soft monetary policy. The probability of a Fed rate hike this year rose by 5 percentage points this week to 73%. All this leads to an increase in yield on treasury bonds. Japan’s household spending index rose 2.8% in September, while analysts had forecast an increase of 0.6%. The ratio of vacancies and job seekers in Japan in September was 1.38, with a forecast of 1.37. The national base consumer price index of Japan (yoy), and in September, fell at the same rate of -0.5%. Nikkei Stock Average rose 109.99 points, or 0.63%, ending trading at 17.446.41. S & P / ASX 200 in Australia was down by -11.71 points, or an -0.22%, to the level of 5.283.84. The Shanghai Composite Index went down by -8.08 points, or -0.26%, to the level of 3,104.27. The Hang Seng index traded down, losing -178.64 points, or -0.77%. October 28, during the Asian session, the US dollar traded in different directions, remaining near the level of 99 points in anticipation of data on US GDP, this afternoon.
USD / JPY: After yesterday’s jump to the top, the USD / JPY currency pair quotes continue to strengthen. The MACD indicator continues to grow, pointing to the continued potential of the bulls. In this situation, we can expect the continuation of bullish dynamics, to test the key resistance level of 106.75. Alternative option. In the case of a resumption of decline, the USD / JPY currency pair quotes and the breakout of the Low level of yesterday’s daily candle, the bears will have a good opportunity to continue moving south to work out the key support level of 103.53.
AUD / USD: Yesterday, the AUD / USD quotes dropped sharply, practicing a high-wave reversal candle. The MACD indicator has approached the zero line, the intersection of which will indicate the superiority of bears. During the Asian session, the decline continued and for now there is no reason to talk about a turnaround. Today we can expect the continuation of the downward trend, to test the key support level of 0.7490.
NZD / USD: During the Asian session, the quotes of the NZD / USD currency pair strengthened slightly, probably the bulls tried to win back yesterday’s losses. Against this background, there is a possibility of continuing correction to the top. So, in case of continued growth and breakdown of the High level of yesterday’s daily candle, we can expect further upward movement in the direction of the key resistance level of 0.7296. Alternative option. In the case of a resumption of decline, quotes of the NZD / USD currency pair, we can expect the downward movement to continue, in the direction of the key support level of 0.7053.
XAUUSD: Gold quotes froze in anticipation of new fundamental data. On the chart, a horizontal corridor formed from the support of 1240.62 and the resistance of 1277.12. After a slight correction to the top, during yesterday’s trading, there appeared a likelihood of continuing to strengthen the quotes, to test the key resistance level of 1277.12. Alternative option. In the case of a resumption of the decline and breakdown of the level of yesterday’s daily candlestick, gold prices may continue to decline, in the direction of a key support level of 1240.62.
EUR / JPY: The EUR / JPY currency quotes are moving northward, approaching a key resistance level of 115.45. The MACD indicator continued to grow, and pressed against the zero line, the intersection of which confirms the potential of the bulls. Today, we can expect continued growth in the EUR / JPY currency pair quotes, to test the key resistance level of 115.45, the breakdown of which will open the way for the bulls for further growth, in the direction of the key resistance level of 118.46. Alternative option. At the same time, in the case of the resumption of the decline and breakdown of the Low level of yesterday’s daily candle, we can expect a downward movement to test the key support level of 112.32.
BRNU6: During the Asian session, the quotes of futures for Brent crude oil continued to strengthen. Despite this, the MACD Indicator continues to decline, approaching the zero line, the intersection of which will confirm the strength of the bears. Formed yesterday on the daily chart candlestick pattern, bullish absorption and continued growth during the Asian session, indicate the possibility of continuing bullish dynamics in the direction of the key resistance level of 51.89.
Overview prepared by Fort Financial Service Analytics
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