Daily Market Review — 05/04/2016
Reserve Bank of Australia rate statement is the main event today
The pair is in a downward trend since the beginning of this week. This is due to the publication of several negative statistics on the Australia’s trade balance, which was much lower than experts’ forecast. Meanwhile, Japan reported wage growth in February. Bank of Japan Governor Haruhiko Kuroda pointed that national economy is recovering at a moderate pace. He said that the reason for low inflation was the fall in oil prices. However, the Australian currency recovered some lost positions after Reserve Bank of Australia left the interest rate unchanged. It should be noted that most analytics thought that the regulator will lower interest rates. At the same time, the bank’s representative said that the scope for easier policy exists.
Resistance: 84.36, 84.82, 85.26
Support: 83.85, 83.35, 82.78
Yesterday British currency recovered all losses caused by strong data on the US labor market. This trend was due to positive report on U.K. Construction PMI, which was slightly better than the forecast. Even in spite of S&P’s warning that Britain could lose AAA rating in case of Brexit, the pound continued to strengthen. Today, the publication of U.K. Services PMI (08:30 GMT), will have significant impact on the pair’s dynamics. Also, the dynamics of the trade will depend on of U.S. ISM non-manufacturing business activity report (14:00 (GMT)).
Resistance: 1.4283, 1.4333, 1.4396
Support: 1.4192, 1.4140, 1.4058
Major European stock indexes rose slightly yesterday, because of positive statistics on the region’s economy. The unemployment rate in Eurozone was 10.3% in February, which fully met expectations. In addition, data on Eurozone Sentix investor confidence appeared much higher than it was expected. Meanwhile, further growth was hampered because experts have predicted that European companies’ profit would be much lower due to the slowdown in global economic growth. Today, the dynamics of trade will depend on Eurozone retail sales data, which will be published at 09:00 (GMT).
Resistance: 9857.11, 9928.95, 9992.43
Support: 9761.88, 9713.43, 9659.97
Light Sweet Crude Oil Futures
Quotations of “black gold” fell yesterday, breaking the mark of $36 dollars per barrel. This trend was caused by the fact that investors do not believe in the positive outcome of oil producers in Doha, on April 17. In addition, representatives of Saudi Arabia said yesterday the country will not cap output unless Iran and other major producers do so. Meanwhile, today the dynamics of trading will depend on U.S. API weekly Crude Oil stock data (20:35 (GMT)).
Resistance: 36.24, 37.07, 37.70
Support: 35.23, 34.56, 34.00