U.S. economic data this week
This week, all eyes will be on Fed Chair Jerome Powell’s speech. The speech will provide insight into how the economy is doing during the Fed’s rapid rate-hiking cycle.
While the market expects rates to continue to hike, the question remains how much more and for how much longer.
Based on current data, U.S. Treasury yields increased on Friday but dropped for the week as market players anticipated that major central banks will raise interest rates further to control inflation.
The Benchmark of 10-year Treasury yields note was higher, trading at 3.134 %, down from 3.231 % last Friday. Benchmark 30-year Treasury yields increased by about 8 basis points to 3.263 % from last Friday and closed at 3.282%Inflation and global economic growth are factors that investors are frightened of as the U.S. Treasury yields increase.
Investors will be monitoring the CPI data from May on Thursday to prepare and expect whether inflation is slowing.
Stock Market Rally
Nasdaq, Dow Jones Along with the S&P 500 futures rose on Sunday night. The stock market rally and gained better momentum, with major averages rising strongly on Friday and for the whole week.
The stock market rally created substantial weekly gains within a short week, with the major indices closing Friday at their highest levels. During last week’s stock market trading, the Dow Jones Industrial Average increased by 5.4 percent. The S&P 500 index increased by 6.5%. The Nasdaq composite increased by 7.5%. The Russell 2000 small-cap index increased by 6%.
According to an expert, the Stock market rally often can last up to two months, before it has significantly dropped again.
During this time, Investors would have the opportunity to sell some of their equity holdings to anticipate the worst economic conditions.
AUD/USD may rebound
Data on Chinese industrial profits are expected to assist the tone for trade in Emerging economies. Those figures are the main subject that helps to focus on APAC trade. To determine how the market will react to those figures, one ideal proxy is the Australian Dollar.
The situation from major lockdown in China has improved since then. However, Chinese industrial profits data could assist the APAC market to be more optimistic. It also can affect the rising of AUD/USD if the figure exceeds that of the prior month.
Last week, the AUD/USD experienced a little rebound from a several-week losing streak that was linked with a broader drop in risk assets.
Data on Chinese industrial profits are expected to assist the tone for trade in Emerging economies. Those figures are the main subject that helps to focus on APAC trade. To determine how the market will react to those figures, one ideal proxy is the Australian Dollar.
The situation from major lockdown in China has improved since then. However, Chinese industrial profits data could assist the APAC market to be more optimistic. It also can affect the rising of AUD/USD if the figure exceeds that of the prior month.
Last week, the AUD/USD experienced a little rebound from a several-week losing streak that was linked with a broader drop in risk assets.
