Trading Insights: Australia hikes, US services sector cools, Dow Jones 30 range trading
Market talk and ideas
Chart 1 AUD/JPY as of June 6 2023 6:02 UTC
The above chart illustrates AUD/JPY price action following the Reserve Bank of Australia (RBA) 0.25% rate increase announcement.
Today’s economic calendar
Australia hikes 0.25%, signals more hikes on the way
- Current rate 4.1%
- Sticky services prices and increasing wages could support the case for more rate hikes
Source: TradingView / J. Knobel June 6 2023 5:44 UTC
Commentary & insights
US ISM Services point to slowing inflation in the services sector
- Latest headline ISM services reported a reading of 50.3 vs the 52.4 many analysts had been expecting
Prospects of a wide trading range underway?
Dow Jones 30 could move 2,200 points towards the downside or 1,135 points towards the upside?
Chart 2 Dow Jones 30 as of June 6 2023 6:15 UTC
Dow Jones 30 Index: Despite that current price 33,565 (chart 2) is above its multi-month October, March, and May upward trend line, risk for a wide trading range to develop remains a prospect. On the downside, provided the support at the round number 33,000 fails to hold, then the prospect for 31,370 can not be ruled out. On the upside 34,700 could be a cap. Therefore, a range trading strategy could be something to consider when trading the Dow Jones 30 Index until a clear trend can emerge.
Not investment advice. Past performance does not guarantee or predict future performance.
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