AETOS Capital Group is a leading Australian financial trading service provider, licensed and regulated by ASIC (313016) and FCA (592778), offering a wide range of financial derivatives trading services in foreign exchange, energy, metals and indices to retail and institutional clients worldwide.AustraliaHighlightFinancial markets have been bombarded by heavy economic events this week, setting off a long party for global investors.Us inflation data cooled more than expected again in November on Tuesday, triggering a sharp rally in US stocks, with the Nasdaq (NAS100), once forced into a bear market by the hawkish Federal Reserve, easily breaking through the key 12,000 resistance level.The dollar and Treasury bonds, beneficiaries of the high-interest environment, naturally fell sharply after the inflation data.But sharp traders will find that the accelerating decline in inflation did not sustain the enthusiasm of the market, on the other hand, the three major indexes suddenly lost momentum during the session, and only a small gain by the end of the day.It was inflation and the Fed's decision in the early hours of Thursday morning to raise interest rates by 50 basis points that prompted the swift pullback.Sure enough, after Thursday's resolution landed, the stock market also finally ended with a low close for the much-anticipated "Federal Reserve turning point."Not only that, in the early hours of Friday morning East Coast time in Australia, the US stock market suddenly plunged, of which the Dow fell more than 700 points, while the Nasdaq plunged 360 points (-3.23%), along the way through a number of key support levels.For many investors looking forward to the Federal Reserve interest rate resolution to bring bull market carnival, the market's 180 degree sharp turn has made many people break the defense, but in fact, the market price behavior behind it is not difficult to understand.In other words, the sharp rise in the stock market was fully priced after the inflation data and before the interest rate decision, so the position of a large number of market participants to cut profits after the decision fell triggered a sharp pullback.So, the plunge that occurred in the early hours of Friday morning can also be interpreted as "good news out," or "Buy the rumour sell the news."Interest rate decisions and inflation are clearly spilling over into currency markets as well.On Thursday evening, the Bank of England, the European Central Bank and the Swiss National Bank each raised interest rates by 50 basis points, further causing volatility in the currency markets, but also once again giving sharp traders an important signal that the interest rate spread of the world's eight major currency pairs is expected to change significantly.Although several major central banks have lowered interest rates on the back of falling inflation, inflation in the UK and the eurozone is still far higher than in the US, so it is not common sense to follow the Fed's downward action.Another point is that historical data show that inflation rises quickly and for a long time, while disinflation falls faster and for a short time.That said, central banks in other countries are not in a position to lower their intensity, and this set of operations is likely to cause the counterattack of the above non-US currency pair to be delayed.Even more exciting is the Australian dollar, as the first G20 developed economies to lower the rate of interest, Australia is now suddenly faced with the problem of an unexpected surge in the labor market - inflation may pick up again.AUDUSD exchange rate trends at a glanceSo will the RBA come under renewed pressure to raise interest rates further? Will the US and Australian stock markets, which have fallen sharply, enjoy a "Christmas bull run" in the remaining trading days of December?What about a general counterattack against the dollar by other major currencies?AETOS focuses on market hot spotsGlenn Yin, Senior analyst at AETOS, will take you back to the great trading opportunities of this year's big events, and take you to look ahead to the major market trends after the end of the "inflation game", and layout the foreign exchange market and stock indexes.Wonderful reviewAETOS wins First Hurun Australia's Best Online Trader Award! This is the first and only Best online Trader award given by Hurun Report since its launch in Australia in 2019.