Daily Markets Broadcast 2019-05-16

Daily Markets Broadcast

2019-05-16

Wall Street encouraged by prospect of tariff delay

Reports circulated yesterday that President Trump was considering a delay in imposing tariffs on European car imports, which could have come in to effect at the weekend. US indices staged a relief rally despite a weak set of US economic data. Today’s Australian employment report for April could decide whether the RBA adopts a more dovish bias, or not.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index extended the recent rebound to a second day yesterday but has edged lower since the open this morning
  • The 100-day moving average at 25,403 is set to move above the 200-day moving average at 25,404 for the first time since January 28
  • US retail sales fell 0.2% m/m in April while industrial production contracted 0.5%. Today sees the release of housing starts and building permits for April.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index was given a boost from the prospect of delayed tariffs, posting the biggest one-day gain in almost two weeks yesterday
  • The 55-day moving average at 11,859 continues to support prices, as it has done on a closing basis since February 8
  • The Euro-zone trade surplus is seen widening to EUR19.9 billion in March, latest surveys suggest. ECB’s Praet and De Guindos are scheduled to speak today.

 

AU200AUD Daily Chart

Source: OANDA fxTrade

  • Australian shares look set to advance for a third consecutive day ahead of the release of the April jobs report
  • The index continues to hold above the 55-day moving average at 6,238, as it has done on a closing basis since January 7
  • Surveys suggest the Australian economy added 14,000 jobs in April, less than the 25,700 recorded in March. A weaker number could push the RBA into adopting a more dovish outlook for its monetary policy.

 

 

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.
Andrew Robinson

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