Read this before you start trading today!

  • US indices finished yesterday’s trading lower. S&P 500 dropped 0.25%, Dow Jones declined 0.16% and Nasdaq moved 0.38% lower. Russell 2000 added 0.11%

  • Stocks in Asia trade higher. Nikkei gains over 2%, Kospi adds 1.2% while S&P/ASX 200 trades 0.7% higher

  • DAX futures point to a higher opening of the European session

  • Fed’s Kaplan said he expects GDP growth at 6.4% this year and unemployment rate at 4%. Kaplan said that he still expects first Fed rate hike to occur in 2022

  • Study from the United States showed that Pfizer and Moderna vaccines are effective against Indian coronavirus variant

  • China is encouraging companies to launch domestic iron ore exploration projects as well as seek new sources of iron ore from abroad. Move comes amid tensions with Australia, who is China’s largest supplier of iron ore

  • Axios reports that US Treasury Secretary Yellen will ask business to help pay for the infrastructure bill during her speech today

  • According to RBA minutes, central bank will pay attention to incoming data when making decision whether to launch more easing

  • Japan’s Q1 GDP declined 1.3% QoQ (exp. -1.2% QoQ). GDP drop on year-over-year basis stood at 1.9%

  • Precious metals, oil, industrial metals and agricultural goods trade higher

  • USD is the worst performing major currency while NZD and AUD outperform

AUDUSD is one of the best performing currency pairs today, thanks to USD weakness and outperformance of AUD. The pair is testing the resistance zone at 0.7800. Keep in mind that failure to break above this zone may result in a head and shoulders pattern surfacing on the chart.