There were some warning moves noted last week and this theme continued last session with safe-haven flows into the US$ and Yen. No such moves as yet into Gold and the AUD/USD and AUD/JPY are holding up fairly well for now but traders should take note of this shift and exercise caution.

There has been little change across most charts ahead of a day with lots of data. Today brings AUD Employment data and the SNB and BoE rate updates. I can’t help feel though that we might in for a bit of risk-off movement especially as Covid-19 continues to rise in many parts of the USA.

The markets are digesting the latest FOMC update where US interest rates are forecast to remain low through to 2022. This news has not helped the US$ but it has helped Gold and the tech heavy NASDAQ has closed above 10,000 for the first time. So, for now, US$ weakness remains the theme.

I’m showing my age here but my chart review this morning brought a childhood television character to mind, the Robot from Lost in Space, and one particular scene where Robot was most agitated and calling a warning to young Will Robinson. The charts are a bit like that for me today; all explained below.

US$ weakness continues but the AUD/USD has stalled at major resistance. The ASX-200 is also facing a challenge today to see whether it can close the week above the key 6,000 level. The ECB extended their stimulus by way of the Pandemic Emergency Purchasing Program (PEPP) and this helped, rather counter-intuitively, to boost the EUR/USD. […]