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Dow Jones Industrial Common Steadies on Biden–Xi Non-Occasion. Will US Shares Make a New Excessive?


Dow Jones, US, China, RBA, AUD, NOK, Crude Oil – Speaking Factors

  • The Dow Jones held floor on strong knowledge and calm US-China talks
  • APAC equities have been primarily larger as sentiment remained constructive
  • US retail gross sales knowledge expectations obtained a bump.Wsick DJI resume its uptrend?

The Dow Jones Industrial Common index, and US equities typically, have been just about unchanged in a single day regardless of a robust learn from the Empire manufacturing index reporting on sector circumstances in New York state.

The index got here in at 30.9 in opposition to 22 anticipated for November. This noticed forecasts for right this moment’s US retail gross sales adjusted as much as 1.5% for October in line with a Bloomberg survey.

The Biden-Xi summit might have helped to calm markets because the talks gave the impression to be constructive with no concrete resolutions. The Chinese language Yuan hit a 6-month excessive however there wasn’t a lot else out of it for markets.

In a single day, feedback from William Dudley and Jeffery Lacker, ex Federal Reserve chiefs of New York and Richmond respectively, led to expectations for a speedier tapering price than beforehand thought. The inflation hazard was highlighted as an space of concern, pushing US yields larger with 10-year Treasuries hitting 1.63%.

Markets typically had a constructive tone in Asia with equities nudging larger and Hong Kong’s Dangle Seng Index (HSI) the outperformer due to on line casino operators doing effectively.

RBA Governor Philip Lowe spoke right this moment however like a great central banker, stored to the script. No price hikes earlier than 2024 however the financial institution has beforehand stated that they might hike in 2023 if circumstances warranted it. He dismissed the possibility of 2022 hike, citing inertia in wages.

In currencies, AUD and NZD misplaced floor as iron ore costs continued decrease. The Norwegian Krone was the most effective performing with crude oil transferring larger. Hopeful market chatter has re-emerged, on the lookout for a launch from the US Strategic Petroleum Reserve.

US retail gross sales knowledge is forward.

Dow Jones Industrial Common Technical Evaluation

The Dow made an all-time excessive at 36,565.73 final week and has since pulled again to be beneath the 10-day easy transferring common (SMA).

Nevertheless, it stays above all period SMAs together with the 21, 34, 55, 100 and 200-day SMAs. This might recommend short-term bullish momentum has stalled however that medium and long-term bullish momentum would possibly nonetheless be intact.

The 21, 34, 55, 100 and 200-day SMAs are potential help ranges. The latest earlier low of 35,490.43 might present help.

On the topside, the 10-day SMA and the height at 36,656.73 are attainable resistance ranges.


Chart created in TradingView

— Written by Daniel McCarthy, Strategist for

To contact Daniel, use the feedback part beneath or @DanMcCathyFX on Twitter

DailyFX supplies foreign exchange information and technical evaluation on the tendencies that affect the worldwide forex markets.

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