Forex news for NY trading on April 27, 2020
- NASDAQ index closes above its 100 day moving average for the 1st time since March 4
- Crude oil futures trade below 100 and 200 hour moving averages
- US CDC cases rise to 957,875 from 928,619 yesterday
- Ohio Gov. Dewine: Announces reopening transition
- 5 largest stocks in S&P all reporting this week, for only the 2nd time ever.
- Gold not having a good day, but holds above MA support
- France coronavirus deaths rise to 23,293 from 22,856 on Sunday
- US treasury auctioned off $42B of 5 year notes at a high yield of 0.394%
- Italy's infection count lowest in 7 weeks
- European shares end the day with solid gains
- New York death toll rises by 337 versus 367 yesterday
- US treasury auctions off $34 billion at 0.229% versus 0.242% WI yield
- Canada case count rises to 47,327 from 45,791
- UK finance minister Sunak: Over 4 million jobs have been furloughed
- Dallas Fed manufacturing activity for April -73.7 vs -75.0 estimate him him
- For what it's worth, US advanced retail sales was revised to -8.4% from -8.7%
- Why the rally in the Australian dollar will continue
- The AUD is the strongest and the CHF is the weakest as NA traders enter for the day
- WTI crude extends fall under $14, down by 20%
In other markets:
- Spot gold fell $14.86 or -0.86% to $1714.71. The high price extended to $1729.06. The low extended to $1706.30. The good news technically for spot gold is that it held above the 200 hour moving average $1707 (see post here)
- WTI crude oil futures fell $4.01 or -23.6% at $12.95. The high price extended to $16.98. The low price fell to $11.88. Him
The price of crude oil continues to be influenced by the supply shock from Russia and Saudi Arabia price war (which the OPEC+ agreement failed to solve sufficiently - the cuts are not scheduled to go into effect until May 1), and the coronavirus demand shock which is ongoing as well. US Baker Hughes rig counts on Friday showed oil rigs tumbled by 60 rigs, which should lead to a natural cut in US oil production, but it will still likely take a sharp rise in demand for an extended period of time to get prices off low levels.
Despite the sharp fall in the oil market, the major US indices closed the day higher with the S&P index and the Dow industrial average leading the way. The NASDAQ index lagged with market leaders with Amazon, Facebook, Alphabet, and Microsoft all moving lower. Apple eked out a small gain for the day. All 5 of those major, highly capitalized companies will release their earnings this week starting
- Alphabet on Tuesday.
- Facebook, and Microsofton Wednesday.
- Amazon, and Apple on Thursday.
The final numbers for the stock market today are showing:
- S&P index rose 41.74 points or 1.47% at 2878.48.
- NASDAQ index rose by 95.64 points or 1.11% at 8730.16.
- Dow industrial average rose 358.51 points or 1.51% at 24133.78.
In the forex, the AUD started the session as the strongest of the majors and it kept that distinction. The AUDUSD moved to the highest level since March 12, taking out the April high at 0.6440 in the process. It will take a move back below that level to get some downside probing in the new trading day. The CHF was the weakest of the majors with the USD also mostly lower (the USD only gained vs the CHF).
A quick look around the other major currency pairs vs the USD as the new day gets underway is showing:
- The USDJPY fell to a lot of 106.99 which was just above the swing low area at 106.92 to 106.975. The 107.214 to 107.295 is a swing area that will need to be broken and stay broken to give buyers more hope for more corrective upside potential. Absent that, the sellers are more in control.
- The GBPUSD ran up to test it's 50% retracement at 1.24466 but kept finding sellers near the level. The corrective move stalled near its 200 hour MA at 1.24047, and the broken 38.2% of the move down from the April high on April 14 at 1.23994 (call it 1.2400). In the new day, stay above the 1.2400 level keeps the buyers in control with a break of the 50% the next key hurdle. Fall below the 1.2400 level and there should be more downside probing for the pair.
- The USDCAD is starting the new day near the session lows and in the process ignored the tumble in oil . The pair is testing the low from Friday at 1.4023. The next targets come in at low from last week at 1.3999 (a nice round number) and then other swing levels between 1.39874 and 1.39947 (so 1.3987-1.4000) is a support target that may prove difficult to get below on the first look. Be aware.
Have a great day. Good fortune with your trading.
