Trade ideas on May 29
Let’s look at main movements on the market.
What do you need to know on May 12?
Main movements on the market: risk-off mood strengthened USD, AUD dropped on China’s imports’ ban and Saudi Arabia cut oil production.
USD and stocks ahead of fear of the second wave
Today the market sentiment is quite risk-averse. There are some fears of the second wave of coronavirus infections. On the one hand, it’s awesome for the US dollar and the Japanese yen. On the other hand, it’s terrible for stocks, but not for all of them, the Nasdaq stock gained as biotech is in high need these days. Goldman Sachs expected that S&P 500 can contract by almost 20% in the next three months.
AUD fell under pressure of Chinese import ban
The Australian dollar went down after China had stopped imports of meat from four Australian producers, perhaps, it was the response to the Australian calls the COVID-19 outbreak inquiry.
AUD/USD has been moving up since March 23, but it seemed it takes a pause now. If it breaks through the resistant line at 0.653, it will continue increasing up to 0.667. However, if it crosses the support level at 0.64 it can fall further to the next support at 0.628.
Saudi Arabia announced cut of oil production
Oil stabilized after Saudi Arabia claimed it would reduce output. Saudi Arabia made a decision that it would further slash production, going beyond the OPEC+ agreement. Moreover, there are first signs of recovery of oil demand, that is also beneficial for the oil upper price.
The WTI oil price is slightly above the 50-day moving average. If it is strong enough to break through the 26.00 mark, it will open doors towards the next resistant line at 29. Support is 20.00.
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All attention to AUD: cash rate and RBA statement
The Reserve Bank of Australia will make a statement and release the cash rate on Tuesday, June 2, at 8:30 MT time.
USD: support from the labor data
The US job market shows first signs of improvement. Will that help the USD?
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Trade ideas on May 29
Let’s look at main movements on the market.
EUR: beating the USD so far
Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
All attention to AUD: cash rate and RBA statement
The Reserve Bank of Australia will make a statement and release the cash rate on Tuesday, June 2, at 8:30 MT time.
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