22.08.22 Macro Morning
Chris Becker | Aug 22, 2022 10:08
Risk markets were spooked a bit by further inflation prints and measures by the Fed that saw Wall Street lose significant ground as we head into the Jackson Hole meeting in this trading week. This spilled over into a higher USD, with Euro and Pound Sterling making new monthly lows, as the former heads to parity again. The Australian dollar didn’t fare much better, pushed below the 69 cent level as commodity prices generally fell across the board. Bond markets were equally volatile with 10 Year Treasuries almost back above the 3% level while interest rate futures suggest a 60bps rise at the next Fed meeting. Crude oil remains tenuous, with Brent crude unable to get back above the $96USD per barrel level while gold lost even more ground to finish the week at the $1745USD per ounce level, again rejecting the $1800 resistance level.
Looking at share markets in Asia from Friday’s session, where mainland Chinese share markets were unchanged until the afternoon session when the selloff commenced, with the Shanghai Composite closing down 0.6% to 3258 points while the Hang Seng Index was dead flat, capping off a poor week and finishing below the 20,000 point level. The daily chart is still showing considerable overhead resistance and daily momentum readings now pushing into oversold mode as the moving average channel accelerates lower without any upside pressure. The May lows are coming under pressure with another break below the low moving average likely:
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