The Australian unemployment rate will be released on August 13 at 4:30 MT time!
News digest on May 14
The market continues to be in a risk-off mode. Time to gain on falling!
AUD dropped on poor unemployment data
Almost 600,000 jobs were lost in April in Australia. Numbers were worse than analysts anticipated. As a result, AUD sank after its strong rally. Let’s look at the daily AUD/USD chart. The price has hit the 100-day moving average already twice. There is a still strong upward trend. However, no way AUD can break out this level soon in such a risk-averse market. If it manages to do it though, it will open doors towards 0.6635. Support are at 0.6375 and 0.626.
Trump disagrees with Powell on negative rates
The US president wants rates to go below zero, but Jerome Powell, the Fed chairman, doesn’t even consider this tool. Yesterday Powell claimed that outlook is dire and there are downside risks ahead. He thinks extra government spending will prevent the country from the long-term recession. The Fed also began buying exchange-traded funds to supply more money to the market and discussed additional aids. USD surged as well as JPY.
Stocks are overvalued
Stanley Druckenmiller, a billionaire investor, said that he didn’t remember the time when the risk of holding stocks so outweighed the potential profit. According to him, the market is flooded with liquidity and soon it will contract. Donald Trump, as always, impressed everybody with his straightforwardness.
However, Wall Street analysts don’t think the same. The S&P 500 has dipped this week, and economists expect the further downturn. Most analysts believe the market will be bearish this year.
Oil trades higher
The WTI oil price increased to $25 a barrel. Overall, it’s going up in May. It was caused by the drop in U.S. crude inventories, marking the first decline since January. However, analysts warn that oil prices could go negative again ahead of June contacts expiration.
The US dollar edged higher, while gold dipped down. Let’s discuss main news and market movements in detail.
The market sentiment improved after the USA reported some decreasing in coronavirus hospitalizations. Gold dropped below $2 000 and the US dollar dipped down, while stocks surged. Let’s have a closer look.
Follow the report on August 14 at 15:30 MT time!
The market sentiment switched to risk-on. The US dollar is dipping down, while riskier assets are rising, especially the Australian dollar after the positive employment data. All eyes on US unemployment claims.
Everyone is talking about a stock split of Tesla. What is it?