The US PPI will come out on Thursday, May 12, at 15:30 MT time.
AUD/USD Dropped After RBA & Other News
Information is not investment advice
- The market sentiment worsened on Tuesday because of the latest coronavirus restrictions in China. As a result, most stock indexes are falling, while safe-haven assets experience increased demand (gold, the JPY, the USD against risk-on currencies).
- Traders await key central bank decisions: the Fed on Wednesday and the Bank of England on Thursday. The banks are expected to start tapering amid concerns about elevated inflation. If it happens, it will support the national currencies.
- The Australian dollar fell after the RBA Governor Philip Lowe left the policy unchanged and claimed that there will not be a hike in the cash rate before 2024.
- The earnings season is about to end. In the US, more than 80% of companies in the S&P 500 have shown better-than-expected earnings results for the third quarter. It helped S&P 500 to hit a record high, but the stock index takes a breath at the start of the week.
EUR/USD has surged above the psychological mark of 1.1600. The short retracement can occur back to this level after such an important breakout. The next resistance zone is actually quite close. It is at 1.1615-1.1620 – the 50-period moving average and the highs of October 26-27. The long-term trend is bearish. Thus, the pair is likely to reverse down soon: from the 50- or the 200-period moving average. Support levels are 1.1600, the lows of late October at 1.1590 and 1.1580.
Gold keeps moving inside the ascending channel. If it manages to break above the psychological mark of $1800, the way up to the October peak of $1810 will be open. Support levels are the 200-day moving average of $1792 and the 50-day moving average of $1780.
AUD/USD has reversed down from the 200-day moving average of 0.7550. It can drop to the low of October 22 at 0.7450. If it manages to close below it, the way down to the next support level at 0.7400 near the 100-day moving average will be open.
Representatives from 15 oil-rich nations attend OPEC meetings. They discuss a range of issues regarding energy markets and, most importantly, agree on how much oil they will produce.
The ECB will publish the Monetary Policy statement on Thursday, April 14, at 14:45 MT (GMT+3).
The Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.
The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT.
The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.