AUD/USD: Australian business confidence shows monthly growth
AUD/USD is testing 0.6765 due to weak macroeconomic background.
As noted by the National Bank of Australia, business confidence in April's index was 0.0 points to last year's -1.0 points, slowing the year-to-date value from 16.0 points to 14.0 points. Some disappointment was noted by investors on the number of construction licenses issued, which for March was down 0.1% from the previous increase of 3.9% for February, and the annual rate consolidated at -2.8% from the previous increase of 11.3%. Retail sales for April, which managed to gain 0.4% from the previous strengthening of 0.2%, were a strong statistic. Tomorrow, May 11, there will be consumer price forecasts which will help investors refine their trading strategy for the near term.
- Resistance levels: 0.6800 and 0.6950.
- Support levels: 0.6710, 0.6570.
GBP/USD: the Kingdom's mortgage has set an anti-record
GBP/USD currency pair reached the area of 1.2621, having updated the April 2022 maximum, however bulls are limited in prospects due to the lack of new stimulus.
Positive dynamics faced the pressure of the macroeconomic statistics from the UK, reflecting the April decline of 0.3% of the Halifax housing costs index to the March growth of 0.8%, which reduced the value position for the year to 0.1%. Home loans made an all-time high of 7.41% the previous month, collapsing the dynamics of demand among the population. Market participants intend to wait for the outcome of the meeting of the Bank of England officials announced for Thursday, May 11, according to the preliminary estimates, which may announce to increase the cost of borrowing by 0.25% to the target of 4.50%. Meanwhile, another move of monetary policy correction may precede the end of the current cycle, with the UK Consumer Inflation Index still at its peak.
- Resistance levels: 1.2665, 1.2900.
- Support levels: 1.2520, 1.2230.
Gold Prices
Gold prices are trading slightly lower, reaching the level of 2030.00 with the prospect of downward correction. The asset continues to remain attractive for investors amid market participants' desire to minimize risks before the release of U.S. consumer price data.
In turn, support for the precious metal was given by the uncertain situation around the U.S. government debt, the upper threshold of which is impossible due to the conflict of interests in the political establishment of the Congress. On the eve of the President Joe Biden sent recommendations to correct the cap, in which the U.S. leader asked to exclude any preconditions amid demands of the Republican wing to reduce budget expenditures. The Treasury Department has already announced that it will not be possible to continue funding the government structures in full at the current rate of rising public debt since June. The banking sector, which incurred significant losses, which were only intensified by the mass closure of deposit accounts by depositors, only increased the risks. According to the US Federal Reserve's survey, banking institutions have tightened credit requirements since early May in order to form a more reliable portfolio of loans and deposits.
- Resistance levels: 2050.00, 2065.00, 2085.00, 2100.00.
- Support levels: 2030.00, 2015.30, 2000.00, 1981.46.
Crude Oil Market Overview
WTI crude oil reached 73.00 during morning trading. The markets continue to demonstrate low activity due to the wait-and-see attitude of investors in anticipation of the release of the data on consumer prices in the United States. The expert community expects April's rate to consolidate at 5.0% and the core rate to slightly decrease to 5.5% from 5.6%, but the monthly rate could moderate to 0.4% from 0.1%.
Meanwhile, investors continue to wait for the release of the U.S. Energy Information Administration's report, which will clarify the picture with weekly inventories of oil and oil products as of May 5. The market expects to continue its downward trend of 1.6 million barrels, to the previous decline of 1.28 million barrels. An earlier block of statistics from the American Petroleum Institute on commercial hydrocarbon reserves showed a steady increase of 3.618 million barrels from last week's correction of -3.939 million barrels.
- Resistance levels: 74.00, 76.00, 78.00, 79.24.
- Support levels: 72.50, 71.00, 70.00, 68.04.