Expectations of rate cut continues to grow as traders look to CPI data tonight

$E-mini S&P 500 Futures(SEP4) (ESmain.US)$ (4 Hour Chart) -[BEARISH ↘ *] S&P is now close to near term resistance at 5472.50. We turn bearish with low conviction for now, expecting price to do an intraday push lower towards 5375 support. Technical indicators are mixed for now with Stochastics indicator close to resistance where price pulled lower in the past.

$USD (USDindex.FX)$ (4 Hour Chart) -[BEARISH ↘ **] DXY drifted lower and broke previous supports. We turn bearish for now, expecting price to pause below resistance at 102.955 before shaping a new push lower towards 102.160 support. Technical indicators are advocating for a bearish scenario for now.

$Gold Futures(DEC4) (GCmain.US)$ (4 Hour Chart) -[NEUTRAL] Gold prices pushed higher and is currently toppish and consolidating between 2522.50 resistance and 2487 support. We prefer to stay neutral for now with a slight bullish bias. A candlestick close above 2522.50 resistance will open a fresh push higher towards next resistance at 2550.50. Technical indicators are bullish for now, however MACD is turning flat showing a slowdown in momentum.

$Nikkei 225 (.N225.JP)$ (4 Hour Chart) -[BULLISH↗ *] Nikkei continues to drift higher. We turn bullish with low conviction for now as long as price holds above 35850 support. A further push higher towards 37700 resistance is expected. Technical indicators are advocating for a bullish scenario for now.

$HSI Futures(AUG4) (HSImain.HK)$ (4 Hour Chart) -[BULLISH↗ **] HSI is currently moving in an uptrend. We maintain a bullish directional bias as long as price holds above key support level at 17000. We expect price to push towards 18000 resistance level. Technical indicators advocate for a bullish scenario as well.

$FTSE Singapore Straits Time Index (.STI.SG)$ (4 Hour Chart) -[NEUTRAL] We maintain a neutral directional bias on STI as we expect price to move between 3200 support level and 3300 resistance level. Technical indicators are mixed. A 4 hour candlestick closing below 3200 support level could open a drop towards 3150 support level.

US markets rallied last night, with $E-mini S&P 500 Futures(SEP4) (ESmain.US)$ and $E-mini NASDAQ 100 Futures(SEP4) (NQmain.US)$ climbing higher by 1.66% and 2.49% respectively. Megacap tech stocks led the gain, with $NVIDIA (NVDA.US)$, $Tesla (TSLA.US)$ and $Super Micro Computer (SMCI.US)$ pushing prices up by 6.5%, 5.2% and 4.9% respectively. This comes after weaker than expected PPI data, which continues to boost confidence in the market of a possible rate cut in September. Traders should take note of CPI data released tonight.

Asian markets moved up today across the board, mirroring that of the US markets. $Hang Seng Index (800000.HK)$ climbed the most by 0.58%. This is due to strength from the finance and energy minerals sector and weakness from the tech sector. $Nikkei 225 (.N225.JP)$ edged higher by 0.44%. The recent risk-on sentiment continues to persist among traders as the JPY continues to weaken following the rally of the US markets last night. Traders should take note of GDP data out today. $FTSE Singapore Straits Time Index (.STI.SG)$ moved up by 0.41%, with the finance sector experiencing gains. $Wilmar Intl (F34.SG)$ saw the highest jump by 3.32%.

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