The USD extends losses on muted CPI and tariff threats, triggering safe haven demand in CHF, JPY, and Gold. Asian stocks decline and WTI crude sees profit taking
Safe haven JPY, CHF, and Gold are back in demand
The US stock market managed to erase intraday losses on Monday, 28 April, in anticipation of a potential US-China de-escalation, and rosy earnings beat from mega-cap Apple, Amazon, Microsoft, and Meta Platforms results out later this week.
Major US stock indices reversed from their 1% intraday losses, with both the S&P 500 and Nasdaq 100 ending yesterday's session almost unchanged. The Dow Jones Industrial Average and the Russell 2000 added marginal gains of 0.3% and 0.4%, respectively.
In contrast, yesterday’s price actions of Gold (XAU/USD) did not reflect the optimism of a thaw in US-China tensions, as it rebounded after a retest on last Friday’s low of $3,265 and ended with a gain of 0.7%.
In case you missed: Chart of the week – USD/JPY medium-term downtrend remains intact as BoJ looms
Another safe haven asset, Gold (XAU/USD) rallied by 1% yesterday after it managed to find support at its 20-day moving average since Monday, 9 June, and added another intraday gain of 0.5% today to hit US$3,370, a seven-day high.
In addition, geopolitical risk tensions have resurfaced in the Middle East as the US ordered the partial evacuation of its embassy in Iraq amid rising security concerns that Iran may target US military bases in the region.
WTI crude skyrocketed by 5.5% yesterday, its biggest single-day rally since 9 April, but profit-taking activities were seen in today’s Asian session right at the key 200-day moving average, acting as an intermediate resistance at around US$69.15/barrel, reinforced by a news report that scheduled US-Iran nuclear talks on Sunday are still likely to proceed.
Asian stock markets followed the overnight negative price reactions seen in major US stock indices overnight, where the S&P 500 and Nasdaq 100 dropped by -0.4% and -0.4% respectively. Japan’s Nikkei 225 slipped -0.6% to 38,188, snapping a four-day winning streak. Hong Kong’s Hang Seng Index dropped by -0.7% to 24,187 at this time of writing.
The latest intraday technical analysis on US Wall Street 30, US Nas 100, US SPX 500, Hong Kong 33, Japan 225, Germany 30, EUR/USD, GBP/USD, AUD/USD, USD/JPY, EUR/GBP, Gold (XAU/USD), and West Texas Oil can be found in our YouTube video above.
