US Stocks Smashed – Nasdaq Down 2.5%
US Stock markets took a pounding yesterday as investors reacted to another move higher in treasury yields and geopolitical concerns. The Nasdaq took the biggest hit again, its worst this year, finishing 2.43% down on the day despite strong earnings from Meta, the S&P slumped 1.43% and the Dow closed down 0.32% to complete a poor day all-round. US treasury yields spiked higher again with the benchmark 10-year moving 13 basis point back up to challenge its recent highs near 5%. The dollar gained again across the board with UsdJpy now trading above the key 150.00 level and Aussie dropping despite an earlier jump after a stronger than expected CPI result down under. Gold and Oil both pushed higher again after geopolitical tensions heightened again in the Middle East.
Dollar Outmuscles the Aussie to Remain top of the Pile
Aussie traders experienced a frustrating day yesterday as local data was outmuscled by a much stronger US dollar to leave the currency 0.74% down. Earlier in the trading day key CPI data had come out well above market expectations, the year-on-year number coming in 0.3% above the expected 5.3% putting more pressure on the Reserve Bank to hike again. The Aussie had rallied well, jumping swiftly from 0.6360 to 0.6399. However, as the day wore on and the US dollar started to gain ground, weak long positions were flushed out and the pair retraced the whole move from the last couple of days to now sit challenging yearly lows. This move probably shows that in the current conditions, if you are trading the majors, anything affecting the dollar side of the equation will outstrip the local currency.
ECB in Focus Today on the Event Calendar
It’s set to be another busy day for traders today as the event calendar keeps pushing out fresh trading opportunities. There is little of note due out in the APAC time zone but the main focus for the day will come in the European session when we have the latest rate decision from the European Central Bank with expectations for the rate remaining at 4.5%. The New York session see’s the usual weekly US unemployment claims data alongside the Advance GDP number and Durable Goods data. Later in the day we hear from Fed member Waller as he speaks in Washington DC and the earnings season will continue to keep stock traders on their toes.
