Morning wrap (07.12.2021)

• US indices finished yesterday's trading higher. S&P 500 gained 1.17%, Dow Jones added 1.87% and Nasdaq moved 0.93% higher. Russell 2000 jumped 2.06%
• Mixed sentiment prevails in Asia. Nikkei surged 2.40%, S & P / ASX 200 added 0.95% and Kospi jumped 0.57%. Indices from China struggled to find common direction
• DAX futures point to a higher opening of the European cash session
• RBA holds cash rate at 0.10%, as expected
• UK retail sales increased 1.8% in November on a like-for-like basis from a year earlier, from a 0.2% fall in the previous month
• China trade balance $71.72B vs $82.75B expected
• China to lower relending rate for small and agricultural companies
• Japan Oct labor cash earnings +0.2% vs +0.7% y/y expected
• Japan Oct household spending -0.6% y/y, in line with expectations
• Australia Q3 home price index, 5.0%, in line with expectations
• Cryptocurrencies rebounded yesterday. Bitcoin broke above $50,000 handle and Ethereum tested $4300 level
• Oil and precious metals prices move higher
• AUD and CAD are the best performing majors. JPY and USD lag the most

AUDUSD pair advanced following the RBA interest rate decision. The guidance continued to suggest no rate hikes until mid-2023 while some economists expected the first hike in July. Pair bounced off psychological support at 0.70 during yesterday's session and if current sentiment prevails, local resistance at 0.7165 may be at risk. Source: xStation5