Daily Markets Broadcast 2019-03-21

Daily Markets Broadcast

2019-03-21

NOTE: The Daily Market Broadcast will pause on 22 Mar 2019 and resume on 24 Mar 2019

Wall Street slides despite extra-dovish Fed

The knee-jerk reaction to a more dovish outlook from the Fed was for Wall Street indices to rally, but that proved fleeting and indices closed lower yesterday. Trump said China tariffs will stay until a trade deal is in place. Australia’s unemployment rate drops to a near-eight year low.

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index closed lower for a second straight day yesterday as the Fed said there were no plans for further rate hikes this year and that its balance sheet run-off would end in September
  • The 55-day moving average at 25,153 is about to cross above the 200-day moving average at 25,160, having moved above the 100-day moving average on March 13
  • Having downgraded its growth, unemployment and inflation forecasts, the Fed sees no need to move rates to what it called a “restrictive” level. The “dot plot” last December had looked for two rates hikes this year.

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index fell the most since February 7 yesterday on disappointing corporate results/announcements and early weakness on Wall Street
  • The index failed to close above the 200-day moving average at 11,773. Rising trendline support has shifted to near 11,455
  • EU leaders start a two-day summit. EU says it will not ask UK for a 2nd Brexit referendum but have yet to receive PM May’s Brexit letter or received a request for any extension of Article 50.

AU200AUD Daily Chart

Source: OANDA fxTrade

  • The Australia200 index is edging lower this morning amid a drop in the unemployment rate but with a smaller number of jobs added in February
  • The 55-day moving average at 6,024 is above the 200-day moving average at 6,020 for the first time since November 7
  • Australia’s unemployment rate hit 4.9% in February, below forecasts and the lowest since May 2011. The economy added a net 4.6k jobs in the month but lost 7.3k full-time ones.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Andrew Robinson

Andrew Robinson

Senior Market Analyst at MarketPulse
A seasoned professional with more than 30 years’ experience in foreign exchange, interest rates and commodities, Andrew Robinson is a senior market analyst with OANDA, responsible for providing timely and relevant market commentary and live market analysis throughout the Asia-Pacific region. Having previously worked in Europe, since moving to Singapore he worked with several leading institutions including Bloomberg, Saxo Capital Markets and Informa Global Markets, proving FX strategies based on a combination of technical and fundamental analysis as well as market flow information. Andrew began his career as an FX dealer with NatWest and the Royal Bank of Scotland in the UK.