Markets Open Higher on Wall Street Lead - Forex News by FX Leaders

Markets Open Higher on Wall Street Lead

Posted Wednesday, July 24, 2019 by
Rowan Crosby • 2 min read

US Markets pushed higher over nigh, lifted by some positive leads from various earnings reports.

The SPX closed higher lifted by strong quarterly reports from Coca-Cola and United Technologies, as well as yesterday’s debt ceiling and budget deal between President Donald Trump and Congress.

The USD has also carried on the positive sentiment its seen lately and has started to push higher towards the 98.00 level. Since the next rate cut is fully priced in, the market is largely focused on what might follow. And that looks like it might now be as many cuts as the FOMC had previously indicated.

BTC has also broken lower and is now under the $10,000 level. Whether or not that holds is a big question as it is a huge mental level. If it can hold the break lower, then we could be in for some more selling here.

Yesterday all the focus was on Boris Johnson and the UK leadership vote. There was little reaction to Boris Johnson winning the UK Conservative Party leadership, and the GBP/USD didn’t really respond. Johnson was widely expected to win, so clearly it was already priced in.

 

Asian Market Outlook

The AUD/USD has been the big loser so far in Asian trade. We saw a weak PMI release and that has opened up the flood gates and the sellers have piled in. At the moment, the Aussie is now back below the 0.7000 mark for the first time in a while. This is also on the back of the strong USD.

We also saw NZD/USD trade balance data that was a little better than expected and the Kiwi is holding up relatively strong against the backdrop of a stronger Greenback.

It looks like again it is the USD that is the major player at the moment and if that keeps appreciating, we could well see the AUD and NZD tumble further. Both are arguably higher than their fair value in my opinion.

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About the author

Rowan Crosby // Asia-Pacific Analyst
Rowan Crosby is a professional futures trader from Sydney, Australia. Rowan has extensive experience trading commodities, bonds and equity futures in the Asian, European and US markets. Rowan holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.
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