AUD/USD => The pair rises over 0.64
Apple =>The stock jumps above $155
Stoxx50 => The index falls to 3625
AUD/USD rises ahead of the RBA rate decision
AUD/USD is rising as the new week begins snapping a two-day losing run. The pair slipped at the end of the last week after US Q3 GDP beat forecasts, growing faster than expected and after core PCE inflation also ticked higher. The data comes ahead of Wednesday’s FOMC rate decision. Investors are shrugging off downbeat China PMI data. However, Australian retail sales were in line with forecasts. Prior to the Fed’s rate decision, the RBA will announce its next move for monetary policy on Tuesday. The RBA caught the market off guard in the last meeting by hiking by 25 basis points, less than the 50-bps expected. Since then, inflation has continued to rise to 7.3% in Q3, raising the possibility that the RBA could surprise again and hike by 50 bps at this meeting.
|US core PCE YoY Sept||Actual: 5.1% (0.2%)|
Where might the AUD/USD price head to?
AUD/USD has risen from the 2022 low of 0.6170, recapturing the 20 sma and falling trendline resistance before running into resistance at 0.6510 last week’s high. The pair has fallen away from here and is testing the falling trendline resistance turned support at 0.64. A break below here could open the door to 0.6350 the 20 sma ahead of the 2022 low. On the flip side, a rise above 0,6510 is needed to create a higher high and expose the 50 sma at 0.6590. Above here the July low at 0.68 could come into focus.
Apple jumped 7.7% on Friday. Here’s why.
Apple rallied 7.7% on Friday, its best one-day gain since 2020, after quarterly earnings and revenue modestly beat forecasts and calmed concerns over demand for its products, even as consumers are increasingly squeezed. The upbeat Apple earnings were even more noteworthy after most big tech earnings disappointed and missed the mark. Meta and Alphabet showed signs of ad revenue growth weakness, and Amazon fell after giving weak guidance for the key holiday quarter. Therefore, the Apple results could have helped cement the stock’s safe haven status, lifting demand and the price. Apple sales rose 8% in the quarter, and Mac sales jumped 25% even as PC sales elsewhere slowed considerably.
Stoxx50 looks to eurozone GDP, CPI data
Stoxx50 rallied 3.9% last week as investors digested the latest earnings releases, as the ECB hiked rates by 75 basis points, in line with forecasts, and as investors grew increasingly optimistic that the Fed could slow the pace of rate hikes after the November meeting despite core PCE and Q3 USD GDP beating forecasts. Today the focus will shift to eurozone Q3 GDP data which is expected to show that the economy grew again in Q3, defying gloomy forecasts of recession. Meanwhile, inflation is expected to cool to 9.8% YoY in September, down from 9.9%. Stronger than forecast growth and, or weaker than expected, inflation could help stocks higher.
|EZ GDP Q3 QoQ||Expected: 0.2% (0.6%)|
Support can be found at 3510 (last week’s low) and 3472 (20 sma).
Resistance for the index can be seen at 3680 (September high) and 3822 (August high).