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Thomson Reuters
Mar 04 - 09:48 PM
AUD/USD - COMMENT-S&P 500 May Provide Clue For Next AUD/USD Move
First appeared on eFXplus on Mar 04 - 07:30 PM

The S&P 500 reversed lower on Monday after topping out at resistance at 2,816 points and its next move could set the tone for the AUD/USD.
Monday's S&P move was a textbook "buy the rumour, sell the fact" reaction to reports the U.S. will likely wind back tariffs on Chinese imports as part of a trade deal nL1N20R033.
The AUD/USD managed to hold its ground through the S&P reversal, but it is worth watching the S&P price action in the coming days for clues on the next move in the AUD/USD.
The S&P topped out between 2,800 and 2,820 three times between mid-October and mid-December.
The pullback from the Oct 17 high of 2,816 was around 7.50 percent, from the Nov 7, 2,815 high around 6.50 percent and a whopping 16.20 percent from the Dec 3 high at 2,800.
The AUD/USD fell nearly two percent from the Oct 17 and Nov 7 highs and crashed over nine percent from the Dec 3 high.
The markets might need another catalyst besides the calming of U.S.-China tensions and the dovish turn in central bank expectations to take risk assets higher and avoid another downward correction.

S&P 500 Click here

aud/usd Click here

Source:
Thomson Reuters IFR Markets

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