7 May 2019 Afternoon Session Analysis
AUD spikes, RBA remains neutral.
Australian dollar skyrocketed during mid-Asian trading session following the release of statement from the Reserve Bank of Australia (RBA). As of writing, pair of AUD/USD rose 0.65% to 0.7038. As widely expected, RBA kept their interest rate unchanged at 1.50% for 38th straight meeting, dialing down the expectation for a possible rate cut. In the statement, RBA remains neutral as they expect economic growth in Australia to remain resilient while being subjected to risks which are tilted to the downside. The central bank noted that growth in international trade has diminished and investment intentions have softened in several countries. However, RBA expects domestic growth to grow around 2.75% for 2019 and 2020 due to a pickup in infrastructure investment. Overall, the statement remains tilted towards neutral, confounding prior expectations for a possible dovishness and interest rate cut ahead from the central bank. Likewise, the Australian dollar received additional bullish support after Retail Sales for the month of March grew by 0.3%, cementing market sentiment for an eventual recovery in consumer spending.
As for commodities market, crude oil price depreciates by 0.40% to $62.30 per barrel. Oil prices came under pressure following concerns of escalating US-China trade dispute which may slowdown global economy and demand for crude oil. Otherwise, gold price appreciates by 0.19% to $1,282.92 a troy ounce due to rising trade war risks.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 22.00 | USD – JOLTS Job Openings (Mar) | 7.087M | 7.350M | – |
| 22.00 | CAD – Ivey PMI (Apr) | 54.3 | 51.5 | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded lower following prior retracement from the resistance level at 97.40. MACD which illustrate bearish momentum suggest the index to extend its losses toward the support level at 97.05.
Resistance level: 97.40, 97.60
Support level: 97.05, 96.70
GBPUSD, H1: GBPUSD was traded higher following prior rebound from the support level at 1.3090. MACD which illustrate bullish momentum and the formation of golden cross suggest the pair to extend its gains toward the resistance level at 1.3140.
Resistance level: 1.3140, 1.3185
Support level: 1.3090, 1.3045
EURUSD, H4: EURUSD was traded higher following prior breakout above the previous resistance level at 1.1180. MACD which illustrate bullish momentum and the formation of golden cross suggest the pair to extend its gains toward the resistance level at 1.1215.
Resistance level: 1.1215, 1.1255
Support level: 1.1180, 1.1125
USDJPY, H1: USDJPY was traded lower following prior retracement from the resistance level at 110.85. MACD which display bearish momentum and the formation of death cross suggest the pair to extend its losses toward the support level at 110.35.
Resistance level: 110.85, 111.15
Support level: 110.35, 109.75
AUDUSD, H4: AUDUSD was traded higher following prior breakout above the previous resistance level at 0.6995. MACD which illustrate bullish momentum and the formation of golden cross suggest the pair to extend it gains toward the resistance level at 0.7025.
Resistance level: 0.7025, 0.7055
Support level: 0.6995, 0.6960
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level at 0.6630. MACD which illustrate bearish bias momentum suggest the pair to extend its losses toward the support level at 0.6585.
Resistance level: 0.6630, 0.6670
Support level: 0.6585, 0.6545
USDCAD, H4: USDCAD was traded lower following prior breakout below the previous support level at 1.3440. MACD which illustrate bearish momentum and the formation of death cross suggest the pair to extend its losses toward the support level at 1.3390.
Resistance level: 1.3440, 1.3505
Support level: 1.3390, 1.3345
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level at 1.0180. MACD which display bearish momentum suggest the pair to extend its losses toward the support level at 1.0155.
Resistance level: 1.0180, 1.0220
Support level: 1.0155, 1.0125
CrudeOIL, H4: Crude oil was traded lower following prior retracement from the resistance level at 62.75. MACD which illustrate diminishing bullish momentum suggest the commodity to extend its losses toward the support level at 61.45.
Resistance level: 62.75, 64.45
Support level: 61.45, 60.20
GOLD_, H4: Gold was traded higher following prior rebound from the support level at 1278.45. MACD which illustrate bullish bias momentum suggest the commodity to extend its gains toward the resistance level at 1287.65.
Resistance level: 1287.65, 1293.20
Support level: 1278.45, 1272.45