Dollar eases as retail sales data improves

15 November, 2019

The US dollar eased slightly yesterday even after the US released some solid numbers. In October, the Producer Price Index (PPI) came in at 1.1%, which was better than the estimated 0.9%. It rose by 0.4% on a MoM basis after declining by -0.3% in the previous month. The market also received data from Walmart. The company recorded an annual growth of 3.2%, with its e-commerce division soaring by 41%. Walmart is an important company because it predicts trends in consumer spending. The market will receive October retail sales later today. The market expects the core retail sales to increase by 0.4% and headline retail sales numbers to increase by 0.2%.

EUR/USD technical analysis


The EUR/USD pair rose to a high of 1.1030 on positive data from Europe. It also reacted to Jerome Powell’s testimony to Congress. The pair is trading at 1.1025, which is along the 50% Fibonacci Retracement level. The price is slightly below the upper side of the Bollinger Bands. The RSI rose to 51. The pair may see some major movements as Europe and the US release inflation numbers and retail sales today.

Crude oil rises as opec trims output growth


The price of crude oil declined after OPEC released its monthly report. The cartel lowered oil production growth forecast for non-OPEC members for 2020. The report said that the US will produce less crude oil in the year. It now forecasts that oil production will drop by 34k a day to 2.17 million barrels. The US has revised production by 33k a day. Meanwhile, data from EIA showed that inventories rose by 2.2 million barrels in the past week. This was higher than the 1.649 million that traders were expecting.

XTI/USD technical analysis


The XTI/USD pair declined yesterday from a high of 57.85 to a low of 56.73. The pair is now trading at 57.15. The price is slightly below the middle line of the Bollinger Bands while the RSI remains at the neutral level of 50. The pair may attempt to move higher to retest the previous high of 57.82.

Euro awaits inflation numbers


Traders will receive European inflation numbers for the month of October. The market expects consumer prices to have risen by an annualised rate of 0.7% and a MoM rate of 0.2%. The core CPI, which strips the volatile food and energy prices, is expected to remain unchanged at 1.1%. These numbers are below the ECB target of 2.0%. The European data released this week has shown some improvements. The GDP data showed that the economy expanded by 1.2%, which was higher than the consensus estimates of 1.1%. In Germany, the economy narrowly avoided a recession.

EUR/SEK technical analysis


The EUR/SEK pair declined to a low of 10.6550 as the Riksbank seemed set to move from negative interest rates. On the hourly chart, the pair has moved from a high of 10.7488. The price is below the 14-day and 28-day moving averages. The RSI has moved to a low of 26. The signal line of the MACD has been dropping. The pair may continue to decline.


Source  
Trade Optimism Overshadows Weak Trade Data

The Australian dollar declined while Australian stocks rose after the Bureau of Statistics released important trade and retail sales data. The country had...

Australian Stocks Fall After RBA Decision

The Australian dollar rose sharply after the RBA delivered its interest rates decision. The bank left interest rates unchanged at 0.75%...

Trump Signs Hong Kong Support Bills

Australian stocks pared back record gains made this week in reaction to Donald Trump's decision to sign bills in support of Hong Kong...


Kiwi strengthens as business confidence rises

The kiwi continued to strengthen against the Australian dollar after the market received better-than-expected data. Business confidence...

Kiwi jumps on positive retail sales data

The kiwi rose after Statistics New Zealand released the latest retail sales data. Retail sales rose at an adjusted rate of 1.6% in the September quarter...

Hong Kong stocks fly on local elections

Australian stocks rose despite controversy within the financial sector. Problems escalated last week when banking giant, Westpac...


Falling into the end of the year

Volatility remains below historical norms, however, the risk rally over the past 3 months appears to be losing stream suggesting volatility should...

Australian Stocks Soar on Westpac Scandal

Australian stocks rose today as the markets continued to react to the latest revelations by Westpac bank. On Wednesday, the bank announced...

Markets React to Latest Westpac Crisis

Australian stocks are having one of their worst weeks this year. The AUS200 index has declined from a high of $6835.35 to a low of $6635.25...