Most markets still in the red, despite rebound

Friday’s action was one of consolidation in the Asian session, with most assets classes still in the red for the week, despite the rebound seen in the last few days. The US30 index is down 0.33% on the week after bouncing off the 55-week moving average at 25,267. The NAS100 has fallen 0.14% and the SPX500 0.35%.

In the currency sphere, AUD/USD is languishing near 4-1/2 month lows after a disappointing week as the market interpreted recent data releases as an input that would push the RBA to an easing bias, possibly as early as next month’s meeting. AUD/USD is up 0.07% today at 0.6893. USD/JPY has seen some profit-taking and a scaling back of safe haven yen buying this week and is almost flat on the week. It’s now at 109.88 after touching 109.01 earlier in the week. The FX pair could snap a four-week losing streak this week.

 

USD/JPY Weekly Chart

Source: OANDA fxTrade

 

Singapore exports contract further

Singapore’s non-oil domestic exports contracted again in April, the second month in a row and this time by 10.0% y/y following an 11.8% decline in March.  The major culprits for the decline were a 31.1% decline in shipments to Japan and -25.4% to the Euro-zone. Shipments to the US increased by 2.2% from a year ago.

The Singapore dollar weakened further after the release of the data, falling as much as 0.1% versus the US dollar to 1.3735, the weakest level since December 27. USD/SGD is now trading above the 61.8% Fibonacci retracement of the decline from October to January. The 78.6% retracement will be found at 1.3780.

USD/SGD Daily Chart

Source: OANDA fxTrade

 

Are we due a Hong Kong growth revision?

Hong Kong releases final economic growth numbers for the first quarter of this year later today. The first estimate showed the economy expanded 0.5% from a year earlier with government spending the major contributor. Despite the fact that China reported steady growth of +6.4% y/y in the same quarter, there is still a risk that the Hong Kong numbers could be revised lower.

Such an outcome could indicate that Q2 performance might not be as buoyant and could result in a negative reaction across asset classes. The data is released at 0830GMT.

 

Euro-zone consumer prices feature

Consumer prices in the Euro-zone are expected to show a slower pace of increase in April, according to the latest survey of economists. Prices probably rose 0.7% m/m after spiking to +1.0% in March, the highest reading in 13 months.

It’s a slow calendar in North America, with US Michigan sentiment seen improving to 97.5 in May from 97.2. Speeches from Fed’s Clarida and Williams complete the week.

It’s a public holiday in Singapore on Monday so the next update will be on Tuesday 21st.

Have a great (long) weekend.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities.

Opinions are the authors — not necessarily OANDA’s, its officers or directors. OANDA’s Terms of Use and Privacy Policy apply. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Feed news

Latest Forex Analysis

Editors’ Picks

EUR/USD recovery reaches critical 1.1170 price zone

The EUR/USD pair bounced from a fresh multi-year low of 1.1106, although the advance stalled in the 1.1170 region, with the pair having been unable to extend gains beyond it since last Friday. Bulls to become more courageous if the advance extends beyond 1.1200.

EUR/USD News

GBP/USD modestly up for the day after flirting with 1.2600

The GBP/USD pair is poised to close in positive ground for the first time in ten days, a result of an extremely overbought dollar and US data giving bulls a reason to take some profits out of the table. Brexit chaos persists, Pound gains unlikely.

GBP/USD News

USD/JPY trades at weekly lows near 109.70 as risk aversion dominates

The USD/JPY pair met a renewed selling pressure in the American trading hours amid intensifying flight-to-safety and touched its lowest level in a week at 109.68.

USD/JPY News

Market confidence in doldrums as PMI surveys plummet

US and German PMI surveys failed to muster any form of confidence in the growth picture, with stocks and the dollar under pressure today. The UK political picture looks bleak, with the chances of a no-deal Brexit or general election rising with May’s departure. 

Read more

Gold jumps to weekly tops and retreats, still well bid near $1280 level amid risk-off mood

Gold built on its intraday positive move and spiked to fresh weekly tops, around the $1284 region in the last hour, albeit retreated a bit thereafter.

Gold News

Majors

Cryptocurrencies

Signatures