President Donald Trump has promised action over China’s new national security legislation for Hong Kong by the end of the week. On Wednesday, Mike Pompeo said the US would no longer consider Hong Kong autonomous from China, setting the stage for further sanctions.
Other equity indices were trading sideways, with EU bourses somewhat higher, but the SP500 index was flat before the bell, and the Nasdaq 100 was down 1%. The underperformance of the tech sector seems to be getting stronger.
In the FX land, the EURUSD pair was trying to breach the critical 200DMA resistance at 1.1020, GBPUSD was flat near 1.2260, USDJPY pair was flat near 107.80, and the NZDUSD pair was fighting for the key level of 0.62. If the kiwi settles above this level, we might see a significant rally over the next weeks.
Moreover, another 2,123K Americans have lost their jobs in the last week, worse than 2,100K expected. And US durable goods came out better than expected.