Australia’s employment data due out tomorrow

As our title suggests, Australia’s employment data for April is set to be released in tomorrow’s Asian session. The current expectations by economists are for the unemployment rate to remain steady at 4.1%, with the employment figure set to come in at 20k which would be lower than the prior months figure of 32.2k. In turn the employment figure may imply a loosening labour market, yet the unemployment rate may take the stage for Aussie traders and could potentially aid the Aussie should it come in as expected or lower. On the other hand, a higher than expected unemployment rate could imply a loosening labour market, which may weigh on the AUD.In the US, the nation’s CPI rates for April where released yesterday. The Core CPI rate for April remained steady at 2.8%, yet the headline CPI rate came in lower than expected at 2.3% versus 2.4%, implying easing inflationary pressures in the US economy. In turn this may weigh on the dollar, as pressure on the Fed’s decision to resume its rate cutting pat may resume.In the US Equities markets, President Trump met with the Crown Prince of Saudi Arabia Mohammed bin Salman yesterday. Following their meeting, Bloomberg reported that agreements are expected to be unveiled in the coming days, which would give access to the UAE and Saudi Arabia to advanced AI chips from Nvidia and AMD. The announcement could potentially aid the stock prices of the aforementioned companies.In the EU equities markets, Beijing per Reuters has issued exports permits to at least four rare earth magnet producers, which include the European manufacturing giant Volkswagen, marking the first time permits have been given since Beijing’s decision to restrict shipments last month. In turn this may aid Volkswagen’s stock price.

EUR/USD appears to be moving in a downwards moving fashion, despite the pair currently resting on our 1.1185 (R1) resistance line. We opt for a bearish outlook for the pair and supporting our case is the the MACD indicator below our chart, yet the RSI indicator currently registers a figure near 50, implying a neutral market sentiment. Nonetheless, for our bearish outlook to continue we would require a break below our 1.0950 (S1) support level, with the next possible target for the bears being the 1.0740 (S2) support line. On the other hand for a bullish outlook we would require a clear break above the 1.1185 (R1) resistance line with the next possible target for the bulls being the 1.1420 (R2) resistance level. Lastly, for a sideways bias we would require the pair to remain confined between the 1.0950 (S1) support line and the 1.1185 (R1) resistance level.

XAU/USD appears to be moving in a downwards fashion, after breaking below our upwards moving trendline and then failing to clear our support level. We opt for a bearish outlook for the precious metal’s price and supporting our case is the MACD indicator below our chart. Yet the RSI indicator currently registers a figure near 50, which tends to cast some doubt on our aforementioned hypothesis. Nonetheless, for our bearish outlook to continue we would require a clear break below the 3230 (S1) support level with the next possible target for the bears being the 3115 (S2) support line. On the flip side for a sideways bias we would require gold’s price to remain confined between the 3230 (S1) support line and the 3350 (R1) resistance level. Lastly, for a bullish outlook we would require a clear break above the 3350 (R1) resistance line with the next possible target for the bulls being the 3500 (R2) resistance ceiling.

その他の注目材料

Today we get Germany’s and Sweden’s final inflation metrics for April, while from Canada we get the building permits for March and oil traders may be more interested in the release of EIA’s US weekly crude oil inventories figure. On the monetary front, BoE Deputy Governor Breeden and Fed Vice Chair Jefferson are scheduled to speak. In tomorrow’s Asian session, we highlight the release of Australia’s employment data for April, while San Francisco Fed President Daly is speaking.