Bitcoin seems to reverse up from the local dips. Are there enough reasons to buy it now?
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.
The US inflation will come out today at 15:30 GMT+3. Traders can’t wait to see the numbers as they will impact all the pairs with the USD!
The greatest sale of Bitcoin continues! It has approached the psychological mark of $30,000. The traders’ focus remains on Thursday’s report on US inflation.
The United States will release retail sales and producer inflation (PPI index) numbers at 15:30 MT time on June 15.
Gold has plunged amid the stronger US dollar as investors await the Fed’s meeting this week.
All eyes are turning to the Federal Reserve and the US dollar. How to trade XAU/USD, EUR/USD, and GBP/USD?