August 18, 2021
USD/JPY: The US dollar rose against the Japanese yen on Tuesday on concerns about the situation in the Middle East region, a slowdown of the Chinese economy, and the rapid spread of the Delta coronavirus variant which forced some lockdowns. As for the macroeconomic data, the US Retail Sales showed worse than expected numbers but US industrial production was better than market expectations last month. Today, Japan published its Total Merchandise Trade Balance figures, which indicate the difference between import and export. The indicator showed a positive value. Japan Imports and Exports were also published and turned out to be worse than expected. The local support level can be seen at 109.33. A breakout below could take the pair towards 108.80.
SELL 109.27/TP 108.80/SL 109.43
AUD/USD: The Australian dollar fell against the US dollar on Tuesday as the negative coronavirus news threatened to upend the assumed hawkish outlook for monetary policy in Australia. The fresh developments drove domestic bond yields sharply lower, making the Australian dollar unwanted for global investors. Australia had been fighting the coronavirus outbreak for weeks, which lead to lockdowns in Sydney, Melbourne and Canberra. Today, Australia has published data on the July Westpac Leading Index that also showed negative value, worse than market expectations. The local support level can be seen at 0.7230. A breakout below could take the pair towards 0.7180.
SELL 0.7225/TP 0.7180/SL 0.7240
DowJones 30: The main US indexes fell on Tuesday due to a decline in mega-cap technology-related stocks. DowJones was pressured by the decline of Home Depot’s stocks, which were down by 4.3%. Covid cases continue to spike higher hindering economic recovery, consumer data has declined recently — including consumer confidence last Friday and retail sales and home builders’ sentiment yesterday. Several stocks stopped reacting positively to good earnings. Meantime, the Earnings season continues on Wednesday.
BUY $35 300/TP $35 500/SL $35 233