Forex Signals Brief for May 2: RBA Keeps Interest Rates at 3.60%
The RBA held interest rates unchanged at 3.60% early this morning, while the Eurozone CPI inflation report will be released soon
Yesterday’s Market Wrap
Yesterday it was mostly quiet during the European session, with many countries being on holiday for May 1st labour day. Although there was a slight weakness in the USD until the release of the US ISM manufacturing report, which has taken importance now, after the jump above recession in US PMI manufacturing indicator last week.
The ISM manufacturing indicator remined below 50points, showing that the activity remains in contraction. But, the ISM manufacturing prices jumped higher last month, from 49.2 points to 53.2 points which indicates that prices have stopped falling and are increasing fast again. That reversed the USD higher again, with Gold losing all the gains it made in the European session.
Today’s Market Expectations
Today the main event is already behind us, as the Reserve Bank of Australia (RBA) held its meeting early this morning, keeping interest rates unchanged at 3.60%, the same as last week. German retail sales showed a return to growth in April a while ago, while the Eurozone CPI inflation report will be released shortly. The headline inflation is expected to tick higher from 6.9% to 7.0%, while core inflation YoY is expected to tick lower from 5.7% to 5.6%.
Forex Signals Update
Yesterday the volatility was low with most countries on bank holiday for may 1st, although there was some price action in the USD which declined unexpectedly during the European session, but reversed up in the US session. We opened four trading signals, although only two reached the targets, one closing in profit the other in loss.
GOLD Continues the Consolidation
The value of gold was increasing during March and April due to a combination of factors such as a weaker US dollar and uncertainty in global markets, but it is been trading in a range since the middle of last month and yesterday’s price action confirmed the range further. The price of Gold jumped above $2,000 per ounce yesterday as the USD resumed the retreat but later retreated to a lower level after the ISM manufacturing report.
XAU/USD – 240 minute chart
Booking Profit in USD/JPY
Since the last week of March, USD/JPY has been showing a bullish trend. After the Bank of Japan (BOJ) meeting and a 200 pip surge last week, buyers seem even more confident. On the H4 chart, moving averages, particularly the 200 SMA (purple), have been acting as support. On Friday, there were two USD/JPY buy signals, so we recommended over the weekend to continue holding a long position this week. We opened a buy USD/JPY signal yesterday which closed in profit as the upside momentum continued.
USD/JPY – 240 minute chart
Cryptocurrency Update
BITCOIN Continues to Hoover Around $30,000
It seems like cryptocurrencies are consolidating with BTC trading close to $30,000. Last month, the value of Bitcoin rose above $30,000 due to the uncertainty surrounding the traditional banking sector and the global economy, which increased demand for cryptocurrencies. Although there was a retreat in the previous week, it provided a good opportunity to open another buy signal for Bitcoin, which remains open as the up and down action continues.
BTC/USD – 240 minute chart
Can the 50 SMA Hold As Support for ETHEREUM?
Last week, the price of Ethereum dropped below $1,900, but it found support at the 50-day SMA at $1,800. As a result, we opened a buy signal for Ethereum, which looked promising as the 50 SMA provided support during the retreat. Yesterday, Ethereum saw an increase in value towards $2,000, but the climb was halted by the 20 SMA (gray), causing ETH to reverse back down to the 50 SMA.
ETH/USD – 240 minute chart
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