SEC sues Binance - BTC Affected
BTC has seen an initial sell off after breaking news of SEC suing both Binance and Coinbase in relation to the misuse of client funds and breach of regulations.
This saw the bottom of the recent range tested $26,000 with a dip below.
Dipy buyers appear to have propped BTC up for the short term with the price revising $27,500. No concrete direction has been established yet. However, more negative news could see a market flush of stops and leveraged positions.
Other Instruments are Now Reacting
Gold
Gold currently remains in a tight $10 range between $1956 band $1966. A break above or below these price points would see some clear airspace to test $1040 support, or $1980 resistance.
Unfortunately, the lack of news to break these ranges means we could see prices stranded until we have the catalyst to breakout.
AUD
AUD remains the strongest FX market after yesterdaty's surprise rate hike, although the FX market has been very quiet this week... Outside of the RBA news, there are no real economic drivers to give the FX market a kick start.
The markets are awaiting BoC's policy decision later today, with no real market sentiment on pause or hike.
The market is finally balanced with a 50/50 bias towards either a hike or pause of rates. We would wait for the dust to settle as usual, rather than taking a trade on the anticipation of a particular outcome.
Equities
Equities remain flat after the initial move higher, after the debt ceiling agreement being passed through the Senate.
This is specifically seen on the VIX, which is hitting fresh multi year lows. One thing to bear in mind is that any potential negative news out could have magnified reactions in equities on a short-term.
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