Daily Market Review — 04/05/2016
USD will be on the move. ADP Non-Farm Employment Change at 12:15 GMT.
The Australian dollar dropped significantly yesterday after the Reserve Bank of Australia unexpectedly decided to slash the national interest rates by 0.25 points, leaving them at record lows − 1.75%. Low inflation and a strong AUD exchange rate were the two main catalysts behind the decision. Additionally, the pair is under pressure as the USD strengthening ahead of Friday’s NFP report.
Today’s trading dynamics will strongly depend on the results of the U.S. ADP Non-Farm Employment Change, scheduled for 12:15 GMT. Additionally the pair should be affected by, today also will be presented data on U.S. Factory Orders and U.S. ISM Non-Manufacturing business activity, both of which are scheduled for 14:00 GMT.
Resistance: 0.7548, 0.7585, 0.7631
Support: 0.7467, 0.7411, 0.7362
After recovering from last week’s losses yesterday, today the pair is benefitting from a better than expected PMI report from Germany. Additionally the Eurozone final PMI came in at 53.1, in line with expectations. Furthermore, 9:00 GMT, the Eurozone Retail Sales data will be announced.
Resistance: 123.46, 124.29, 124.85
Support: 122.54, 122.12, 121.69
Alibaba ( NYSE: BABA)
Earnings season continues in the United States. Tomorrow, before the market opens Alibaba (NYSE: BABA), the world’s largest online store will present its report. According to experts the company’s average quarterly profit per share should reach $0.56 and its revenue – $23.17 billion. It could be the fifth consecutive season when report is better than the average forecast. If the report exceeds expectations it will be for the fifth consecutive time, which could very well push the data will exceed the forecast, the company’s share price could rise to $78 a share. Currently, the stock has been trending down over the last few days, but that could all change with a better than anticipated report.
Resistance: 76.77, 78.12, 79.53
Support: 75.38, 74.36, 73.64
Crude Oil Futures
Crude oil prices fell by more than 3% yesterday as renewed concerns about global oversupply impacted the market. Additionally, weak data concerning manufacturing activity in China negatively impacted the market. Furthermore, the US Institute of Petroleum’s data showed oil inventory grew by 1.3 million barrels as opposed to the forecasted 0.5. Today oil prices will primarily depend on the U.S. crude oil inventory report, scheduled for 14:30 GMT.
Resistance: 44.48, 45.31, 46.10
Support: 43.26, 42.53, 41.90