Moreover, regarding commodities, the Australian economy faces negative headwinds from China. The economic powerhouse is Australia’s largest trading partner, which leaves it particularly vulnerable to policy moves from Beijing. A recent order to release metals from state reserves has added additional weight to prices, with copper taking the brunt of the hit. Moreover, China has also ordered firms to curb exposure and limit leverage in metal markets.
- Fibonacci retracements can be applied to a variety of markets in the effort of identifying possible support or resistance levels. - In this article, we look at how traders that follow multiple asset classes can apply Fibonacci analysis to their charts, building on the previous article in which we investigated the topic of confluence with Fibonacci retracements.
Looking ahead to next week, with there being on the economic calendar, I suspect markets will continue to digest the Fed surprise. Upside risks likely to persist for the greenback vs low yielding currencies (EUR, CHF) and should equities extend losses in what is typically a seasonally weak time for risk assets, commodity currencies can be expected to weaken further.