Markets on Wednesday: Commodity Currencies Shake-Off Tariff Talk
Rowan Crosby • 1 min read
Markets were back into the swing of things yesterday, led by a rally in US equities. The S&P 500 was poised for trouble when it closed below its 200-SMA, but fortunately for long-only investors price rebounded.
Markets were helped by a positive tone coming back into the tech sector. It appears that while the Chinese tariff situation continues to gather steam, the USD is still holding up.
We saw some strength in the Greenback, while there were some strong performers from the commodity currencies that included the NZD, CAD and AUD.
Bitcoin has cracked 7,000 resistance and is starting to make another bull run. We’ve seen this a few times now and on every occasion, we’ve failed to find buyers.
The USD is grinding higher ever so slowly and we are looking at a test of 90.50. Perhaps even in today’s session.
This has been a relatively strong level and I feel that it is going to provide some selling. It might be worth looking at some of the majors that have been strong, to perhaps outperform.
If the commodity currencies can continue to gain momentum on Wednesday, that would be a good option.
US Dollar Index (DXY)- 240 min Chart.