EUR/USD: negative sentiment persists
The single currency of the eurozone is trading with mixed dynamics in a pair with the US dollar, testing the 1.0650 mark, continuing past sessions of decline, updating the local minimum from May 23.
Negative factors for the euro became even more noticeable with the onset of Tuesday, when the May inflation data in the EU was published. According to statistics, the CPI increased the pace to 3.8% from the previous 3.5%, surpassing the neutral forecasts of analysts, which allowed the overall indicator to update the peak indicator at 8.1% for May, contrary to analysts' expectations by 7.7%. At the same time, publications on sales activity in the retail segment were published on the eve, which disappointed experts – the April indicator changed the dynamics of the annual level, decreasing by 0.4%, having fallen by 1.7% the day before last month. Market forecasts of positive dynamics in terms of growth up to 4.0%, and up to 5.4% on a monthly basis, having increased 0.9% in March, did not materialize.
- Resistance levels: 1.0700, 1.0747, 1.0800, 1.0850.
- Support levels: 1.0640, 1.0600, 1.0500, 1.0459.
NZD/USD: continuation of the downward correction
During Asian trading, the NZD/USD currency pair is testing the 0.6470 mark, being at the support level on May 27. Earlier, the asset made attempts to turn the dynamics to growth, but had no success, which is why by the end of the afternoon trading it again rolled back to the "red" zone.
The trading pair was supported by positive publications from Australia and China, which recorded a softer decline in economic indicators than expected by analysts. Thus, the Caixin PMI increased in production capacity to 48.2 points from 46.0 points, contrary to expectations of a correction to 47.0 points. According to economists, the subsequent indicators of activity in the production segment will strengthen at a less active pace, because since the beginning of the summer, Shanghai firms have begun to resume work in normal mode upon completion of quarantine restrictions.
- Resistance levels: 0.6500, 0.6567, 0.6600, 0.6650.
- Support levels: 0.6450, 0.6400, 0.6300, 0.6250.
Gold
The positions of the precious metal are trading above the key level of 1800.00, being in correction, having finished a slight increase the day before.
Despite the strong volatility on global markets, the metal segment continues to be the key in terms of reliability among other investment instruments. Even if investors preferred to open contracts for gold last year, the demand for bullion and coins is actively growing in the real world. Thus, according to the statistics of the US Mint, the level of transactions for the series of the most popular "American Golden Eagle" in May significantly exceeded the indicator of the previous months, which is confirmed by the sale of 200.5 thousand coins, in gold equivalent is 147 thousand ounces. Recall that similar figures for last month amounted to 122.5 thousand, or 88 thousand ounces. Moreover, given the activity on transactions in May last year, where the indicator was only 205% thousand ounces, which only strengthens the positive trend.
- Resistance levels: 1866.0, 1917.0.
- Support levels: 1810.0, 1770.0.
Crude Oil market
Over the past weeks, the leaders of the eurozone states have successfully agreed on another block of sanctions restrictions, which makes it possible to refuse to supply 2/3 of the volumes of Russian oil. Thereby pushing the Brent asset to new highs to 122.00.
Among the new restrictions, there is a ban on the purchase of energy carriers delivered by sea, leaving Hungary the right to use the Druzhba pipeline for imports. According to officials, by the end of 2022, the alliance will be able to refuse 90% of all supplies from the Russian Federation, which it will be able to reimburse by purchasing American and Asian raw materials, having previously carried out technical work to restructure logistics for new suppliers. Oil immediately reacted to the geopolitical situation, showing a strong strengthening of quotations at 122.00 in the current trading week, reaching a maximum of March 24.
- Resistance levels: 122.00, 129.00, 135.00.
- Support levels: 114.50, 107.15, 101.90.