Crypto Slipping Down

The crypto market capitalisation declined by 0.66% to $1.038 trillion, showing several waves of decline with increasingly lower local lows. This is a sure sign that the bears are in control, and the pressure seems to be coming from the stock market, as the institutional favourites that are losing the most so far are Bitcoin (-1.1%), Ethereum (-0.9%) and XRP (-0.7%).

Australian Dollar Sinks after RBA Pause, GDP Next

The Australian dollar has plunged on Tuesday after the Reserve Bank of Australia held rates at today’s policy meeting. In the European session, AUD/USD is trading at 0.6373, down 1.36%.

AUD/USD Falls Sharply after the Decision of the Reserve Bank of Australia

The Reserve Bank of Australia (RBA) kept interest rates at 4.10% for the third month today, fueling rumors that the tightening cycle is over. Although according to Reuters, the majority of economists polled by the agency expect another increase by the end of the year after the release of the inflation report for the third quarter.

Swiss Franc Hits Two-Month Low after Weak GDP

The Swiss franc is in negative territory on Tuesday. In the European session, USD/CHF is trading at 0.8884, up 0.44%. The Swissie has lost over 1% since Wednesday and is trading at its lowest level seen mid-July.

European and Chinese Economies Drag Markets Down

China’s services PMI fell from 54.1 to 51.8, the smallest growth rate since last December. That’s a sharper slowdown than the 53.6 expected. The momentum of the recovery from lifting COVID restrictions is quickly fading, and the stimulus measures announced so far have proved unable to reverse the trend.

Sunset Market Commentary

The dollar returned from a long weekend and immediately left a stamp on trading. EUR/USD lost support from the lower bound of the 2023 upward sloping trading range at around 1.0785 before moving further south towards next support at 1.0735 (December 2022 interim high).

The Two-Month Pound Correction Not Over Yet

Business activity in the UK is losing ground, as is the case in Europe and China, although the final reading for August saw the services PMI rise to 49.5 from the first estimate of 48.7. According to today’s PMI, the services sector moved from growth to contraction in August, falling to 49.5.

Australia: July Monthly Inflation Softer Than Market Expectations

The July Monthly Indicator rose just 4.9%yr (0.3%mth) softer than market expectations but was clost to our 4.8%yr (0.2%mth) forecast. As it is close to our forecast it is unlikely to see us meaningfully revise our Q3 CPI forecast of 1.0%qtr.

DYX Dropped Below 104 (Close 103.5)

The DYX dropped below 104 (close 103.5). A potential test of the 104.7 end May top is called off for now. EUR/USD jumped to the high 1.08 area (close 1.088). Even the yen received some breathing space after USD/JPY initially jumped well north of 147 (close 145.88). Even so, the USD/JPY uptrend remains intact for now.

EUR/USD Eyes German, Eurozone CPI Reports

The euro’s mini-rally has run out of steam. EUR/USD climbed 0.80% over the past two days but is trading in negative territory on Wednesday. In the European session, the euro is trading at 1.0867, down 0.11%.