Australian Dollar and oil not enjoying Wednesday trading at all
26 April 2023
The beginning of the week was really quiet, but Wednesday is bringing about some interesting moves and promising situations on the market. The calendar is still not extremely busy but, apparently, it is enough, at least for now. The key data today was already published - the inflation in Australia. CPI decreased significantly to 6.3% from the 6.8% reported before. The reaction to dropping inflation was pretty straightforward: the AUD dropped like a rock. Simply speaking, the declining inflation does not require more interest rate rises from the RBA.
The calendar has been busy in the US as well, in the peak of the earnings season. Yesterday, we learned the Q1 numbers from Microsoft, Google, Visa, Nestle, PepsiCo, and McDonald’s and all of them came better than expected. For the first three companies, we are yet to see their reaction as the numbers were published after the session close.
The first few hours of the European session bring indices trading close to the weekly lows. Yesterday, Dow Jones and Nasdaq broke important horizontal supports. Today, Nasdaq is trying to cancel that breakout with a small bullish reversal. We are yet to find out if the bullish counterattack is successful here.
Important things are currently happening with oil, who is canceling the entire rise that happened on Monday and Tuesday. I am not surprised about that, as I did claim a few times that the chances of closing the OPEC+ gap are still huge and this gap is pulling the price like a magnet. With this momentum and price action, it is very probable that we witness the final gap closing soon.
Today, after the American session close, we will learn the Q1 results from Meta Platforms. In the last three quarters, Meta missed the EPS numbers - let’s see if the trend continues. Meta awaits the results of a short-term bearish correction after hitting the mid-term highs in the middle of April.