EUR/USD: euro is declining
The EUR/USD is displaying multidirectional sentiment in the pair, testing the 1.0700 level and the local low of March 20. Investors are keeping low trading activity after the holiday the day before.
Meanwhile the economists are estimating the recession in the German economy negatively, which may affect the stability of the European Union participants. Recall that the day before the publication the statistics on the national gross domestic product reflected the decrease to -0.2% from 0.3% against the market expectations of 0.2%, while the quarterly value remained negative to -0.3% from -0.4% against analysts' forecasts of -0.1%. Bloomberg experts see the reason for the low pace in failed energy policy and a slow transition to new technology.
- Resistance levels: 1.0725, 1.0758, 1.0800, 1.0850.
- Support levels: 1.0682, 1.0640, 1.0600, 1.0550.
USD/CHF: US dollar is getting stronger
In the morning session the USD/CHF is making up for the losses incurred from the two-day correction and traded at 0.9060, waiting for new impetus to develop further dynamics.
Market participants' optimism supported the instrument, as traders noted positively the agreement on the US sovereign debt. Thus, at the end of last weekend, President Joe Biden confirmed the information about the success of the negotiations, where the speaker of the House of Representatives, Kevin McCarthy, acted as the second party. If Congress approves the bill by the end of the week, the United States will be able to avoid default and investors will shift their attention back to the Fed's strategy on monetary parameters.
Today, May 30, the Swiss gross domestic product for Q1 and the index of leading indicators from the Swiss Economic Institute are scheduled to be published. Analysts expect the annual economy to correct to 0.6% from 0.8% but the quarterly economy to strengthen by 0.1%. The day before the dynamics were expected to be zero.
- Resistance levels: 0.9073, 0.9100, 0.9150, 0.9200.
- Support levels: 0.9030, 0.9000, 0.8960, 0.8930.
AUD/USD: the Australian currency has resumed its decline
Trading pair AUD/USD is dominated by the "bears", having lost the potential of upward dynamics of the last two sessions. The pair reached 0.6516 and continued to decline amid weak macroeconomic data from Australia.
Thus, investors noted a sharp drop of 8.1% in the number of approved construction work orders for April, previously down 0.1% in March contrary to market expectations of a 2.0% growth, while the annual value has strengthened the negative trend to -24.1% from -17.3%, defying the average forecasts. Tomorrow the April revised Australian CPI data is scheduled for release and it is not expected to show significant correction to 6.1% according to the forecasts.
- Resistance levels: 0.6530, 0.6563, 0.6590, 0.6635.
- Support levels: 0.6489, 0.6450, 0.6400, 0.6350.
Oil market review
According to the information from the trading floors, quotations of the North American light oil grade WTI are correcting in the downward dynamic at the mark 72.41.
The day before the Secretary General of the cartel OPEC has held a conversation with reporters from the Iranian edition Shana, which was an opportunity to refute the desire of the organization to establish a fixed price for hydrocarbons, because exporters want to focus on the balance of supply and demand. Contrary to recent criticism of OPEC+ actions, the official spoke of the need to avoid populist rhetoric in the media, as the organization takes decisions on adjustments based solely on a fundamental analysis of market values and trends. In turn, the official expects the lifting of sanctions against official Tehran in the medium term, which will bring a significant amount of cheap raw materials to the world market and cap the resulting increased demand for oil and oil products.
- Resistance levels: 74.70, 80.60.
- Support levels: 70.30, 64.30.