Currencies
- The euro (EUR) dropped yesterday against the US dollar (USD) from 1.3679 by 0.2% and is currently trading around 1.3650. The pair crashed yesterday after the US ADP Non-Farm employment change announcement, as the data was better than expected. The single currency is under pressure today as European Central Bank press conference and US Non-Farm Payrolls are taking place this afternoon at the same time.
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The US dollar (USD) is edging higher against the Japanese yen (JPY) at 101.873. The dollar rose from almost an eight-week low against the yen as a better than expected private jobs report boosted confidence that nonfarm payroll data tomorrow may show the US economy is having a stronger recovery.
Equities
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US equities remain range bound, after reaching all-time highs on Tuesday. The US 500 (SPI) went to 1966, the US 30 (DOW), towards 16888 and the USTech (NDQ) to 3889.
Commodities
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Platinum (XPT) fell from its highest in 10 months and is currently trading at 1496, after good US employment data may show further improvement in the US economy.
Mover & Shaker with FX Options
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Gold (XAU) was range bound around 1325 yesterday, with resistance around 1333 and support below 1321. Gold fell this morning as investors looking for riskier assets, while the ECB and NFB come ahead later today.
- Option traders may consider constructing a Long Straddle Strategy on the XAUUSD and gain if the pair moves in either direction, while the risk is limited to the premium paid.
- A Long Straddle Strategy can be constructed by buying an at the money a Call and a at the money Put.
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AUD/USD rises to two-day high ahead of Aussie CPI
The Aussie Dollar recorded back-to-back positive days against the US Dollar and climbed more than 0.59% on Tuesday, as the US April S&P PMIs were weaker than expected. That spurred speculations that the Federal Reserve could put rate cuts back on the table. The AUD/USD trades at 0.6488 as Wednesday’s Asian session begins.
EUR/USD now refocuses on the 200-day SMA
EUR/USD extended its positive momentum and rose above the 1.0700 yardstick, driven by the intense PMI-led retracement in the US Dollar as well as a prevailing risk-friendly environment in the FX universe.
Gold struggles around $2,325 despite broad US Dollar’s weakness
Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.
Ethereum continues hinting at rally following reduced long liquidations
Ethereum has continued showing signs of a potential rally on Tuesday as most coins in the crypto market are also posting gains. This comes amid speculation of a potential decline following FTX ETH sales and normalizing ETH risk reversals.
Australia CPI Preview: Inflation set to remain above target as hopes of early interest-rate cuts fade
An Australian inflation update takes the spotlight this week ahead of critical United States macroeconomic data. The Australian Bureau of Statistics will release two different inflation gauges on Wednesday.