FX News Today
- Stock market still struggled during the Asian session though and European stock futures are down on the day, as are US futures, although the latter managed to pare some of their overnight losses.
- RBA left cash rate unchanged at 1.5% for now, as federal election looms. The ASX was knocked off highs.
- Trump’s top trade negotiator meanwhile confirmed that Washington plans to go ahead with tariff hikes on Chinese goods on Friday.
- China vice-premier Liu Hewill visit Washington on May 9-10.
- Indices in China and Hong Kong, which started stronger started to pare gains leaving the Hang Seng down -0.11%, the CSI 300 up 0.15% as of 5:32GMT, versus losses of -1.29% and -1.61% in Topix and Nikkei. .
- WTI future managed to climb to USD 62.29.
- German manufacturing orders rebounded 0.6% m/m, -4.0% m/m contraction in the previous month, and showed a sharp decline in orders inflow in the first quarter of the year, highlighting the impact of geopolitical trade tensions on the manufacturing sector in particular.
Charts of the Day
Technician’s Corner
- USA500 rebounded from 2882 lows, up to 2927 area. As the asset sustains gains above the 20-day MA, with momentum indicators positively configured, the next Resistance area comes at 2848-2960. Support is set athe PP of the day and also the low of the day at 2909.78. RSI is at 57 and sloping higher, in contrast with MACD which suggest weakness of the positive momentum.
- USDJPY recovered from the 1-month low of 110.28 s topping at 110.95 in late NY morning trade. Currently is consolidating around PP level at 110.65. As yesterday’s candles closed outside Bollinger Bands area pointing an oversold asset, while 50- and 200-day MAs have been flattened implying to a near-term ranging market, the asset is expected to enter a consolidation mode. Resistance is now at Friday’s 111.07 low, though the downturn in US Treasury yields may limit gains going forward.
Main Macro Events Today
- Ivey PMI (CAD, GMT 14:00) – A survey of purchasing managers, the Index provides an overview of the state of business conditions in the country. Expectations suggest that the Index will decline to 51.1 compared to 54.3 last month, although still remain above 50.
- BoJ Minutes (JPY, GMT 23:50) – BoJ Minutes are expected to shed more light as to how Japanese policymakers are assessing the current global slowdown and whether they plan any further policy actions.
Support and Resistance levels
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Andria Pichidi
Market Analyst
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