Indices Correction: A Temporary Dip or More to Come?

By Tomasz Wisniewski|

Published: November 28 2023, 06:08 GMT+0

Indices Correction: A Temporary Dip or More to Come?

Hello traders! Let’s dive into what Tuesday has in store for us. We’ve already seen some action with retail sales figures from Australia and remarks from Reserve Bank of Australia’s Bullock, who echoed a hawkish tone. This has unsurprisingly boosted the Australian dollar, making it one of the strongest currencies as the day begins.

In the economic calendar, we’re still anticipating consumer confidence data from the US, which is forecasted to be around 101. Now, let’s shift our focus to the markets.

On the forex front, the Australian dollar’s rise continues, but the Japanese yen steals the spotlight as the strongest currency, maintaining its lead from yesterday. Conversely, the British pound and euro are experiencing dips, while the American dollar holds a middle ground.

Turning to indices, we observed a controlled correction phase yesterday. This appears to be the start of a short to mid-term bearish trend, especially evident in the DAX, suggesting a possible further downturn today.

Commodities are presenting a mixed bag – precious metals like gold and silver enjoyed an upward trend yesterday, whereas oil experienced declines. While oil remains in a somewhat sideways trend, it does carry a bearish undertone, hinting at potential further declines.