Market Digest: What Happened Last Week?

Must read

Economic calendar

There were not many high impact news hitting the markets in the past week. In the U.S., consumer confidence printed way lower than the expectations, signalling a potential slowdown in consumer spending. On the other hand, although ISM Services PMI came out slightly lower than the previous data, it is still healthier than the consensus. 


Although there wasn’t a sizable move in the most widely traded FX pair during the past week, its volatility has seen some improvement when compared to the week before. The pair ended the week in the middle of its trading range which makes it harder to determine a directional bias. However, do keep in mind that NFP is coming on the second Friday this month (which is this Friday) so we are expecting volume to increase gradually in the next few days.

Through the CPI print we can see that inflation in Australia has started to cool down quickly with the data printing 7.4% vs 8.4%. While we are talking about AUD, the currency finally took a breather after being smashed with 4 consecutive losing weeks against US dollar. I believe the rebound was majorly due to the fact that China’s manufacturing expanded in its fastest pace in more than a decade.


From a technical perspective, the currency pair hovered around the crucial 0.67 level for most of last week. Despite some selling pressure, buyers remained steadfast and pushed the pair up to close the week with gains. Nevertheless, considering that the pair has broken out of its bullish channel, the overall sentiment for AUDUSD remains bearish.



Gold has had an exemplary week with it bagging more than $44.50, or 2.45% in gains in the past week. Looking at the chart, a bullish engulfing pattern can also be seen on the weekly timeframe, signaling a major shift in sentiment. With that being said, all eyes are on Powell as he is scheduled to deliver his semi-annual testimony to lawmakers tomorrow and Wednesday. 

Ru Yi
Financial Markets Analyst

Sign up and trade with Alchemy Markets now.
The only place where you get to trade more than 1000 instruments including Stocks, FX, Cryptos, and many more with ultra-low spreads and institutional-grade liquidity.

Latest article