By Chris Becker
It was an easy night for short USD traders as Fed chief Powell reiterated the central banks dovish stance, sending interest rates and King Dollar down and lifting stock markets and commodities. Oil spiked higher on a greater than expected inventory drawdown while base metals also rallied alongside gold, although Bitcoin took a tumble.
Looking at the action in Asia yesterday, where the Shanghai Composite just couldn’t get any traction, falling 0.4% to 2911 points. The Hang Seng Index came back however after five straight lower sessions, closing 0.3% higher to 28205 points, still below the previous set of highs at 28500 but at least isn’t going any lower with support firming at 28000. This level must be supported for this bounceback rally to continue or a full retracement back below 27000 points is probable:
