Indices Defy Dollar Strength, Push Higher
30 November 2023
Today's financial calendar is bustling with activity, exhibiting mostly disappointing figures. The day kicked off with China's manufacturing PMI falling short of expectations at 49.4. In the Eurozone, inflation numbers also trailed behind forecasts, with core CPI at 3.6% and CPI at 2.4%. Looking ahead, we await GDP figures from Canada and core PCE price index data from the US, accompanied by the usual Thursday unemployment claims.
Reflecting on Wednesday's outcomes, Australian inflation numbers came in lower than anticipated, leading the Australian dollar to be the weakest currency of the day. In contrast, the US's preliminary GDP outperformed expectations at 5.2%, surpassing the 5% forecast. These developments have notably shifted currency strengths: the American dollar now leads as the strongest currency, closely followed by the Canadian dollar. This shift has impacted Forex charts significantly; the EURUSD pair is notably declining, hinting at a potential triple top formation, while the American dollar to Japanese yen is on the rise, forming a double bottom pattern. The Australian dollar to American dollar pair is on a downtrend, rebounding off a long-term resistance line.
In the world of indices, despite the dollar's strength, we're observing a general uptrend. DAX and Dow Jones are showing robust growth, whereas NASDAQ and S&P 500 are lagging slightly behind.
Turning our attention to commodities, the stronger dollar is exerting its influence, particularly on precious metals which are undergoing a correction after four days of gains. Oil, however, showed a promising buy signal yesterday, breaking free from its pennant formation. Today, this uptrend is being challenged by the dollar's rise, although the mid-term buy signal for oil remains intact.