Daily Markets Broadcast 2019-05-07

Daily Markets Broadcast

2019-05-07

Wall Street set to decline further

US officials have confirmed President Trump’s threat to impose more tariffs on Chinese goods on Friday, due to apparent back-tracking on early promises by the Chinese. China officials say they are still heading to Washington this week. The Reserve Bank of Australia reviews its benchmark interest rate today.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index pared back early losses but still finished in the red yesterday. Early activity today has seen further weakness after the confirmation of the tariff threat
  • The index is holding above the 55-day moving average at 26,058 after briefly breaking below it yesterday, the first time since January 23. The 200-day moving average is at 25,395
  • The IBD/TIPP economic optimism index is seen improving to 54.5 in May, according to the latest survey of economists. Fed’s Quarles is scheduled to speak.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index looks poised for a second daily loss as it echoes weakness on Wall Street, despite an upward revision to the Markit German services PMI in April
  • The rising 55-day moving average is at 11,776, and has supported prices on a closing basis since February 8
  • German factory orders are expected to fall 6.2% y/y in March, an improvement from February’s -8.4% but it would be the 10th consecutive month of contraction.

 

AU200AUD Daily Chart

Source: OANDA fxTrade

  • The Australia200 index is posting small gains ahead of the RBA meeting in a few hours after posting the biggest one-day decline in more than six weeks yesterday
  • The index is still holding above the 55-day moving average at 6,219, as it has done since January 8. The 100-day moving average is above the 200-day moving average for the first time since December 7. Some interpret this as a medium-term bullish signal
  • The RBA is widely expected to keep the benchmark rate unchanged at a record low of 1.5%. More interest will be focused on the accompanying statement to see whether the dovish expectations are confirmed or not.

 

 

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Andrew Robinson

Andrew Robinson

Senior Market Analyst at MarketPulse
A seasoned professional with more than 30 years’ experience in foreign exchange, interest rates and commodities, Andrew Robinson is a senior market analyst with OANDA, responsible for providing timely and relevant market commentary and live market analysis throughout the Asia-Pacific region. Having previously worked in Europe, since moving to Singapore he worked with several leading institutions including Bloomberg, Saxo Capital Markets and Informa Global Markets, proving FX strategies based on a combination of technical and fundamental analysis as well as market flow information. Andrew began his career as an FX dealer with NatWest and the Royal Bank of Scotland in the UK.