This week, the most attention of traders is focused on the situation around a lawsuit of SEC against Binance. BNB coin was hammered massively, along with Bitcoin , Ether, and other cryptos. Positions for a total amount of approximately 500 million dollars were liquidated from crypto markets, confirming a “crypto winter” narrative.
Stock indices, on the other hand, display much greater resilience, with Nasdaq and S&P500 moving higher with VIX positioned at around 14: the long-term low. That points to an extremely low level of fear, which, on the one hand, indicates an established bull market, and creates a lift in prices. On the other hand, it creates a vulnerable situation when volatility can potentially grow.
The main group of events ahead are CPI publication on Tuesday next week and, of course, interest rate decision from FED, as well as a press conference by Jerome Powell.
Gold had started a recovery, followed by declining yields of the US dollar, while it is still located in an intermediate-term uptrend. Gold is also treated as protection against chaos, and while the market fear is still low, it has an increased upside potential should the overall market volatility rise.
The Australian dollar had performed an uptick following the unexpected rise of the interest rate from RBA. This reaction might be temporary, though now Aussie is of the few currencies, gaining higher yields in real-time.
Considering the position of AUDUSD at the intermediate-term resistance area, it may pull back as shown on the chart, and resume moving in ascending trend.
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