Technical Analysis

Markets wobble after US data slate but sentiment quickly rebounds


There was some heavy selling in US equity futures after the economic data and that was coupled with buying the US dollar. It was a strange move given that the PCE data was generally in-line with estimates. The durable goods orders data was soft on the headline but it was entirely due to volatile transportation orders while the core non-defense capital goods orders data was up 0.2% compared to a flat number expected.

None of the data would have shifted Fed views and the steady decline in PCE inflation should be comforting for the Fed.

In any case, the market moves didn’t last. Here’s a 1 minute chart of AUD/USD, which shows the short-lived price action.

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