Daily Markets Broadcast 2019-05-16

Daily Markets Broadcast

2019-05-16

Wall Street encouraged by prospect of tariff delay

Reports circulated yesterday that President Trump was considering a delay in imposing tariffs on European car imports, which could have come in to effect at the weekend. US indices staged a relief rally despite a weak set of US economic data. Today’s Australian employment report for April could decide whether the RBA adopts a more dovish bias, or not.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index extended the recent rebound to a second day yesterday but has edged lower since the open this morning
• The 100-day moving average at 25,403 is set to move above the 200-day moving average at 25,404 for the first time since January 28
• US retail sales fell 0.2% m/m in April while industrial production contracted 0.5%. Today sees the release of housing starts and building permits for April.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index was given a boost from the prospect of delayed tariffs, posting the biggest one-day gain in almost two weeks yesterday
• The 55-day moving average at 11,859 continues to support prices, as it has done on a closing basis since February 8
• The Euro-zone trade surplus is seen widening to EUR19.9 billion in March, latest surveys suggest. ECB’s Praet and De Guindos are scheduled to speak today.

AU200AUD Daily Chart

Source: OANDA fxTrade

• Australian shares look set to advance for a third consecutive day ahead of the release of the April jobs report
• The index continues to hold above the 55-day moving average at 6,238, as it has done on a closing basis since January 7
• Surveys suggest the Australian economy added 14,000 jobs in April, less than the 25,700 recorded in March. A weaker number could push the RBA into adopting a more dovish outlook for its monetary policy.

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