DAILY ANALYSIS 17 AUGUST 2022

• US indices finished yesterday’s session mixed. S&P 500 rose 0.19%, Dow Jones moved 0.71% higher while Nasdaq fell 0.19%. Russell 2000 dropped 0.04%
• Indices from Asia-Pacific traded mostly higher today. S&P/ASX 200 added 0.20% while Nikkei rose 1.15%. Indices from China traded higher. Kospi underperformed and fell 0.70%
• DAX futures point to a slightly higher opening of the European cash session
• Iran’s parliament will hold a closed session today to discuss nuclear deal, however Goldman Sachs does not expect a major breakthrough
• RBNZ raised interest rate by 50bp as expected and lifted its projection for the peak in rates to 4.1% in Q2 of 2023 from 3.9% in previous forecasts
• AUD weakened after the Australian wage price index increased by 0.7% for the third consecutive quarter in Q2, below consensus of a 0.8% rise.
• BoC Gov Macklem says inflation may have topped out
• API report showed that US oil inventories fell more than expected
• Musk clarified that he is not buying Manchester Utd or any other sports team
• Cryptocurrencies are trading higher today. Bitcoin rose over 1.0% and Ethereum jumped more than 2.0%
• Oil is trading slightly higher. WTI trades near $86.80 per barrel while Brent is approaching $93.00 mark
• Upbeat moods prevail on the precious metals market. Gold trades 0.40% higher while silver gains 0.80%
• NZD and GBP are the best performing major currencies while USD and AUD lag the most
• 

AUDUSD failed to break above 200 SMA (red line) and the pair pulled back below support at 0.7060, which coincides with 38.6% Fibonacci retracement of the upward wave launched in March 2020. Currently the pair is testing an earlier broken upper limit of the wedge formation. Should break lower occur, downward move may accelerate towards recent lows at 0.6717.