*Australia Performance Of Service Index 44.5 In February – AiG

Trading 04 mar 2019 Commentaire »

Australia Performance Of Service Index 44.5 In February - AiG


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Dollar Stays Firm On Trade Deal Hopes

Trading 04 mar 2019 Commentaire »

The U.S. dollar edged higher against most major currencies on Monday, as reported suggested a trade deal between the U.S. and China is very likely in the foreseeable future.

Rising treasury yields aided the dollar's uptick, while a couple of disappointing economic reports limited its gains. The greenback gained despite U.S. President Donald Trump's comments on Saturday that he was not pleased with its strength against other world currencies.

"I want a dollar that's great for our country but not a dollar that's prohibitive for us to be doing business with other countries," said Trump.

The dollar index rose to 96.82 and was last seen hovering around 96.60, up by about a quarter percent over previous close.

The Euro was down 0.23% at $1.1342, falling from Friday's close of $1.1368 and the British Pound Sterling dropped to $1.3178, losing about 0.2%.

The Pound Sterling weakened on weak construction activity in the U.K. A survey report from IHS Markit showed that the seasonally adjusted construction Purchasing Managers' Index, or PMI, fell to 49.5 from 50.6 in January. Economists had forecast a score of 50.5.

The reading was the lowest since March 2018, when snow disruption hurt the sector.

Against the Japanese Yen, the dollar weakened to 111.74, losing about 0.16%, after having strengthened to 112.01 yen earlier in the session.

On the trade front, media reports suggest the U.S. and China are close to ending their bitter year-long trade dispute, with sort of agreement expected during a meeting between their two presidents later this month.

The Wall Street Journal reported Sunday that talks have progressed far enough that the two sides could reach a formal agreement at a potential meeting around March 27.

It is reported that China is offering to lower tariffs and other restrictions on American products, while the U.S. is considering removing most, if not all, sanctions levied against Chinese products since last year.

Reports indicate a likely meeting between President Donald Trump and Chinese President Xi Jinping later this month.

In economic news, a report released by the Commerce Department on Monday unexpectedly showed a pullback in U.S. construction spending in the month of December.

The report said construction spending fell by 0.6% to an annual rate of $1.293 trillion in December after climbing by 0.8% to a rate of $1.301 trillion in November. The drop surprised economists, who had expected spending to edge up by 0.2%.

The unexpected decrease came as spending on private construction slid by 0.6% to an annual rate of $991.2 billion after surging up by 1.3% to a rate of $997.1 billion in November.

The Commerce Department said spending on public construction also dropped by 0.6% to an annual rate of $301.5 billion in December after tumbling by 1% to a rate of $303.5 billion in November.

Meanwhile, the revised data from the University of Michigan revealed consumer sentiment in the U.S. rebounded by much less than initially estimated in the month of February.

The report said the consumer sentiment index for February was downwardly revised to 93.8 from a preliminary reading of 95.5. However, the index is still well above the final January reading of 91.2, but the revised reading came in well below analyst estimates of 95.7.


The material has been provided by InstaForex Company - www.instaforex.com

Australia Rate Decision On Tap For Tuesday

Trading 04 mar 2019 Commentaire »

The Reserve Bank of Australia will wrap up its monetary policy meeting on Tuesday and then announce its decision on interest rates, highlighting a busy day for Asia-Pacific economic activity. The RBA is widely expected to keep its benchmark lending rate unchanged at 1.50 percent.

Australia also will see Q4 numbers for current account and February results for the Performance of Service Index from AiG. The current account is expected to show a deficit of A$9.1 billion following the A$10.7 billion shortfall in the three months prior, while the service index had a score of 44.3 in January.

South Korea will release Q1 numbers for gross domestic product; GDP was up 0.6 percent on quarter and 2.0 percent on year in the previous reading.

The central bank in Malaysia will conclude its monetary policy meeting and announce its decision on interest rates; the central bank is widely expected to keep its benchmark ending rate steady at 3.25 percent.

Japan will see February numbers for the services and composite indexes from Nikkei; in January, their scores were 51.6 and 50.9, respectively. Nikkei also will release February results for its business PMIs for Hong Kong and Singapore; in January, their scores were a respective 48.2 and 50.1.

China will see February numbers for the services and composite indexes from Caixin; in January, their scores were 53.6 and 50.9, respectively.

New Zealand will provide February figures for its commodity price index; in January, prices were up 2.1 percent.

Hong Kong will release January numbers for retail sales; in December, sales added 0.1 percent on year.

The Philippines will see February data for consumer prices; in January, inflation was up 0.1 percent on month and 4.4 percent on year.


The material has been provided by InstaForex Company - www.instaforex.com

Treasuries Rebound Amid Pullback On Wall Street

Trading 04 mar 2019 Commentaire »

After initially showing a lack of direction, treasuries moved higher over the course of the trading session on Monday.

Bond prices moved to the upside in late-morning trading and remained firmly positive throughout the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 3.3 basis points to 2.722 percent.

With the decrease on the day, the ten-year yield gave back ground after ending last Friday's trading at its highest closing level in over a month.

The advance by treasuries coincided with a pullback by stocks on Wall Street, which came under pressure after seeing initial strength.

Profit taking contributed to the downturn by stocks after continued reports of progress in U.S.-China trade talks drove the Nasdaq and the S&P 500 to their best intraday levels in over four months in early trading.

Traders were also reacting to a report from the Commerce Department showing an unexpected drop in construction spending in the month of December.

The report said construction spending fell by 0.6 percent to an annual rate of $1.293 trillion in December after climbing by 0.8 percent to a rate of $1.301 trillion in November. The drop surprised economists, who had expected spending to edge up by 0.2 percent.

Trading on Tuesday may be impacted by reaction to reports on service sector activity in February and new home sales in December.


The material has been provided by InstaForex Company - www.instaforex.com

Crude Oil Futures Settle Higher On Trade Deal Hopes

Trading 04 mar 2019 Commentaire »

Crude oil prices moved higher on Monday, amid growing optimism about a trade deal between the U.S. and China this month, and on OPEC-led output cuts.

West Texas Intermediate Crude oil futures for April ended up $0.79, or 1.4%, at $56.59 a barrel.

On Friday, crude oil futures settled at $55.80 a barrel, losing $1.42, or 2.5% for the session.

Crude oil prices have moved up significantly since the beginning of this year, riding on supply cuts by OPEC and some non-OPEC members. According to a survey from Reuters, supply from OPEC dropped to a four-year low last month, thanks largely to a larger than originally agreet output reduction by Saudi Arabia.

Data released by Energy Information Administration last week said crude oil inventories in the U.S. dropped for the first time in six weeks, falling by more than thrice the expected level, to 8.65 million barrels in the week to February 22.

According to media reports, the U.S. and China are close to ending their bitter year-long trade dispute, with sort of agreement expected during a meeting between their two presidents later this month.

The Wall Street Journal reported Sunday that talks have progressed far enough that the two sides could reach a formal agreement at a potential meeting around March 27.

It is reported that China is offering to lower tariffs and other restrictions on American products, while the U.S. is considering removing most, if not all, sanctions levied against Chinese products since last year.

Reports indicate a likely meeting between President Donald Trump and Chinese President Xi Jinping later this month.


The material has been provided by InstaForex Company - www.instaforex.com

Gold Futures Tumble Again, Extend Losses To 6th Straight Session

Trading 04 mar 2019 Commentaire »

Gold futures ended notably lower on Monday, extending losses to a sixth successive session, with traders shunning the safe haven asset despite U.S. stocks plunging sharply after a good start.

The U.S. dollar gained against most major currencies amid optimism the U.S. and China could agree on a trade deal in the foreseeable future, and contributed significantly to the yellow metal's slide.

The dollar index was up by about 0.35% at 96.70, after rising to a high of 96.82, rallying from the day's low of 96.33.

Gold futures for April ended down $11.70, or 0.9%, at $1,287.50 an ounce, falling to a six-week low.

On Friday, gold futures for April declined $16.90, or 1.3%, to $1,299.20.

Silver futures for May ended down $0.151, at $15.105 an ounce, while Copper futures for May settled at $2.9090 per pound, down $0.0230 from previous close.

After opening on a firm note amid rising optimism about U.S.-China trade agreement, equities tumbled on Wall Street, weighed down by disappointing economic data.

According to reports from multiple sources, the U.S. and China are in the final stage of negotiations on a long-term trade deal.

A report from the Wall Street Journal said China is offering to lower tariffs and other restrictions on American products, while the U.S. is considering removing most, if not all, sanctions levied against Chinese products since last year.

It is reported that U.S. President Donald Trump and Chinese President Xi Jinping are planning to meet later this month to finalize the agreement.

On the economic front, a report released by the Commerce Department on Monday unexpectedly showed a pullback in U.S. construction spending in the month of December.

The report said construction spending fell by 0.6% to an annual rate of $1.293 trillion in December after climbing by 0.8% to a rate of $1.301 trillion in November. The drop surprised economists, who had expected spending to edge up by 0.2%.

The unexpected decrease came as spending on private construction slid by 0.6% to an annual rate of $991.2 billion after surging up by 1.3% to a rate of $997.1 billion in November.

The Commerce Department said spending on public construction also dropped by 0.6% to an annual rate of $301.5 billion in December after tumbling by 1% to a rate of $303.5 billion in November.

Meanwhile, the revised data from the University of Michigan revealed consumer sentiment in the U.S. rebounded by much less than initially estimated in the month of February.

The report said the consumer sentiment index for February was downwardly revised to 93.8 from a preliminary reading of 95.5. However, the index is still well above the final January reading of 91.2, but the revised reading came in well below analyst estimates of 95.7.


The material has been provided by InstaForex Company - www.instaforex.com

U.S. Construction Spending Unexpectedly Drops 0.6% In December

Trading 04 mar 2019 Commentaire »

A report released by the Commerce Department on Monday unexpectedly showed a pullback in U.S. construction spending in the month of December.

The report said construction spending fell by 0.6 percent to an annual rate of $1.293 trillion in December after climbing by 0.8 percent to a rate of $1.301 trillion in November. The drop surprised economists, who had expected spending to edge up by 0.2 percent.

The unexpected decrease came as spending on private construction slid by 0.6 percent to an annual rate of $991.2 billion after surging up by 1.3 percent to a rate of $997.1 billion in November.

Spending on residential construction tumbled by 1.4 percent to a rate of $536.7 billion, more than offsetting a 0.4 percent increase in spending on non-residential construction to a rate of $454.5 billion.

The Commerce Department said spending on public construction also dropped by 0.6 percent to an annual rate of $301.5 billion in December after tumbling by 1 percent to a rate of $303.5 billion in November.

While spending on educational construction was nearly unchanged at a rate of $77.5 billion, spending on highway construction slumped by 0.9 percent to a rate of $89.1 billion.

Despite the monthly decrease, the Commerce Department said total construction spending in December was up by 1.6 percent compared to the same month a year ago.


The material has been provided by InstaForex Company - www.instaforex.com

Bitcoin analysis for March 04, 2019

Trading 04 mar 2019 Commentaire »

Bearish breakout of the 4-day balance support at $3.718.

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We find the bearish breakout of the 4-day balance, which is a sign that sellers are in control and that we may expect further decline on the BTC. Support levels are seen at $3.528 and $3.386. Key short-term resistance level is seen at $3.862.

Trading recommendation: We are short BTC from $3.680 with targets at $3.528 and $3.386. Protective stop is placed at $3.865.

The material has been provided by InstaForex Company - www.instaforex.com

EUR/USD analysis for March 04, 2019

Trading 04 mar 2019 Commentaire »

EUR/USD has been trading downwards but the intraday bullish divergence is in creation. Careful with selling positions.

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The level of 1.1327 provided intraday support. According to the M15 time – frame, we found that bullish divergence on the stochastic oscillator in creation, which is sign that selling at this stage looks risky.Intraday resistance levels are set at 1.1346, 1.1368 and 1.1380. Even if the price breaks the support at 1.1327, we wouldn't recommend you going short on intraday prospective due to potential oversold condition.

Trading recommendation: We are neutral on EUR/USD with the intraday risk for the downside. Anyway, if we see the breakout of the resistance at 1.1346, we will buy with small position and put targets at 1.1368 and 1.1380.

The material has been provided by InstaForex Company - www.instaforex.com

March 4, 2019 : GBP/USD is retracing towards its newly-established Demand-Zone.

Trading 04 mar 2019 Commentaire »

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On December 12, the previously-dominating bearish momentum came to an end when the GBP/USD pair visited the price levels of 1.2500 where the backside of the broken daily uptrend was located.

Since then, the current bullish swing has been taking place until January 28 when the GBP/USD pair was almost approaching the supply level of 1.3240 where the recent bearish pullback was initiated.

Shortly after, the GBP/USD pair lost its bullish persistence above 1.3155. Hence, the short-term scenario turned bearish towards 1.2920 (38.2% Fibonacci) then 1.2820-1.2800 (50% Fibonacci level) within the depicted H4 bearish channel.

On February 15, significant bullish recovery was demonstrated around 1.2800-1.2820 (Fibonacci 50% level) resulting in a Bullish Engulfing daily candlestick.

This initiated the current bullish breakout above the depicted H4 bearish channel. Quick bullish movement was demonstrated towards 1.3155, 1.3240 and 1.3300.

Early signs of bearish reversal/retracement were demonstrated around the price level of 1.3317. Bearish pullback was expected to extend down towards 1.3240 and 1.3200 where price action should be watched cautiously for bullish positions.

Bullish persistence above the newly-established depicted demand-zone (1.3240-1.3190) is mandatory to allow further bullish advancement.

Any bearish breakdown below 1.3190 invalidates the short-term bullish scenario allowing a quick bearish movement to occur towards 1.3150 (lower limit of the demand zone) and 1.3060 where the recent bullish breakout was initiated.

Trade Recommendations:

Conservative traders can watch for the current bearish pullback around 1.3190 for a valid low-risk BUY entry. S/L to be located below 1.3150. T/P levels to be located around 1.3240 and 1.3317 initially.

The material has been provided by InstaForex Company - www.instaforex.com