Good morning, dear traders! The new trading week has just begun. So, in Monday’s review of the Asian session, we will discuss lots of important things. Why the Asian stock market is declining, which currencies are holding near the negative zone, and where the greenback is located. Watch the video review and find out the answers!
The FOMC meeting is due on January 25-26. Jerome Powell is expected to clarify how the regulator will cap soaring inflation. Consumer prices have already reached multi-year highs. Analysts believe that the central bank will take a hawkish stance. For this reason, the US stock market continues to extend losses this week. The US currency is trading in the narrow range of 95.40 – 96.00 despite a drop in stocks. It is unable to move upwards even after a rise in US Treasuries, the release of strong economic reports, and hawkish comments of Fed policymakers. It is likely to stay flat until the announcement of the FOMC meeting results. It is trading today at 95.75. Analysts expect the US dollar to advance after the Fed’s meeting.
On Friday, the yen managed to rise higher. Its nearest target level is located at 113.26. This morning, the Nikkei index has already dropped by 0.06%. Investors are cautious before the FOMC meeting. They are unwilling to take risks. So, the dollar/yen pair is moving today from the lower border of 110.88 to the upper border of 113.97. However, it has no drivers for further growth. On the daily chart, the downtrend prevails. A signal to open long positions will appear if the price consolidates above 114.37. Currently, the pair is trading at 113.77, which is below the indicated level.
Today, the Aussie has already lost 0.4% at the opening of the session due to risk aversion. Traders are unwilling to buy risky assets after the hawkish statements of the Fed. Inflation data which is on tap on Tuesday is likely to influence the Aussie’s trajectory as well as the RBA’s policy decision. For this reason, on Friday, the Australian dollar reached all the target levels located in the range of 0.7227 - 0.7171. Technical indicators got closer to the bearish zone. Today, the AUD/USD pair is trading at 0.7155. It is moving towards the lower limit of the 0.7065 – 0.7252 price range. If it consolidates above 0.7252, it may trigger a price reversal and a possible escape from the red zone. If so, it will be the seventh attempt of the Aussie to break through the resistance level since December 29 last year. If the pair rises above the 0.7209 level, it has all the chances to climb above the resistance levels of 0.7227 and 0.7252.
This is the main news of the Asian session. The last week of January is ahead. Use the information from this video wisely and increase your profit! Do not miss our next video reviews to stay up to date with the latest market news! If you want to share your opinion or ask some questions, please leave them in the comments down below. See you!