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Alibaba earnings miss pulls down Asia

"We don't care about 'why'. Real traders only have the time and interest to care about 'what' and 'when' and 'if' and 'then'. 'Why' is for pretenders." - JC Parets.

 

 

HEADLINES

 

 

  • Euro's pain makes for dollar's weekly gain
  • Oil hovers above six-week low as China readies crude reserve release
  • Gold slips as U.S. jobless claims data cements rate-hike bets
  • Asian shares down as Alibaba's slide reignites China worries
  • S&P, Nasdaq end at record peaks on strong earnings
  • AUD/USD: A return to the 2021 0.80 highs seems quite unlikely in 2022 – ING

 

 

FOREX

 

 

Euro's pain makes for dollar's weekly gain

 

The dollar was set to post a second week of chunky gains against the euro on Friday as traders wager on interest rates rising faster and further on the North Atlantic's western shore, while sterling and the kiwi have also firmed with rate hike bets.

In emerging markets, a gathering currency crisis in Turkey has driven the lira to a record low after the central bank - facing political pressure - cut rates despite inflation running near 20%.

Among majors the euro has been the week's big mover, and although it has recovered to $1.1372 after slumping to $1.1263, traders said it remains vulnerable as fundamentals and positioning swing to favour the dollar.

 

 

COMMODITIES

 

 

Oil hovers above six-week low as China readies crude reserve release

 

Oil prices rose slightly on Thursday after dropping to six-week lows as investors wondered about how much crude major economies would release from their strategic reserves and how much that would ease global crude demand pressures. Prices fell to six-week lows early in the session as China said it was moving to tap reserves.

 

Gold slips as U.S. jobless claims data cements rate-hike bets

 

Gold prices slipped on Thursday as encouraging weekly U.S. jobless claims data strengthened bets for an earlier-than-expected rate hike by the Federal Reserve following recent strong inflation data out of the United States.

 

 

STOCKS

 

 

Asian shares down as Alibaba's slide reignites China worries

 

Asian shares fell on Friday as disappointing earnings from Chinese e-commerce giant Alibaba (BABA) heightened worries about Beijing's broad regulatory crackdown and slowing growth in the world's second-biggest economy. That saw the region lag a solid Wall Street performance overnight, with MSCI's broadest index of Asia-Pacific shares outside Japan off 0.44% and set for a weekly decline of 1.2%.

 

S&P, Nasdaq end at record peaks on strong earnings

 

Both the S&P 500 and the Nasdaq eked out record closing highs after a topsy-turvy Thursday on Wall Street, as investors focused on upbeat retail and technology earnings which outshone hawkish inflation comments from a Federal Reserve policymaker.

 

 

ANALYSIS

 

 

AUD/USD: A return to the 2021 0.80 highs seems quite unlikely in 2022 – ING

 

“We think the RBA will taper asset purchases and end QE before the end of 2022. The first hike may only come in early 2023, although risks are skewed towards an earlier move. Still, the market pricing (75bp of tightening in the next 12 months) is too hawkish in our view.”

“We expect a moderate net-negative impact of commodities on AUD in 2022.”

“AUD is the most undervalued (-11%) G10 currency against the USD, according to our medium-term BEER model. AUD is also the most oversold currency in G10 and has the widest room to benefit from short squeezes in risk-on periods. A return to the 2021 0.80 highs in AUD/USD seems quite unlikely in the next year.”

 

 

CHART

 

 

S&P 500 – 4-Hour Candlesticks


 

Source: GKFX Prime Metatrader 4

SP500 is trending strongly higher and is supported by a rising trendline while being capped at the 4700 level.  - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT


Source: FX Street Economic Calendar

 

 

SOURCE

 

 

https://www.fxstreet.com/economic-calendar
https://www.investing.com/news/stock-market-news/asian-shares-down-as-alibabas-slide-reignites-china-worries-2684816
https://www.investing.com/news/economy/euros-pain-makes-for-dollars-weekly-gain-2684775
https://www.investing.com/news/stock-market-news/nasdaq-futures-boosted-by-tech-demand-nvidia-earnings-2683959
https://www.investing.com/news/commodities-news/oil-under-pressure-as-us-looks-to-lead-spr-shock-treatment-2683369
https://www.cnbc.com/2021/11/18/gold-markets-treasury-yields-federal-reserve-inflation.html

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