Markets look to global inflation and GDP data for direction

Inflation and GDP

During the upcoming trading week, traders and investors look to the release of global inflation and Gross Domestic Product Data for direction. The Japanese, eurozone, UK, Swiss, and German economies all release important GDP growth figures, while important inflation data is expected from the Chinese, United States, France, and Germany.

Traders will also be closely following the Reserve Bank of New Zealand policy meeting and a key OPEC members meeting this week. The Australian economy will release its closely followed monthly jobs report, while China is set to release important Industrial Production and Retail Sales figures.

Crypto traders will also be closely watching the outcome of Bitcoin’s halving event this week, and how it will affect the price of the pioneer cryptocurrency.

Monday 11th May, NZD Electronic Card Sales

Electronic Card Retail Sales as reported by Statistics New Zealand and measures purchases made in New Zealand on debit, credit, and store cards. The figure gives a hint of the strength inside the nation’s retail sector and also influences the RBNZ interest rate decision. A high number is generally positive for the New Zealand dollar, while a weak number is seen as negative for the New Zealand dollar.

  • The NZDUSD pair is only bullish while trading above the 0.6000 level, key resistance is found at the 0.6150 and 0.6280 levels.
  • If the NZDUSDpair moves below the 0.6000 level, sellers may test towards the 0.5890  and 0.5660 levels.

Tuesday 12th May, US Consumer Price Index

The US Consumer Price Index is released by the US Bureau of Labor Statistics and evaluates fluctuations in the cost of living by measuring the changes in prices consumers pay for a set of items. CPI is used as the headline figure for inflation as inflation reflects a decline in the US dollars purchasing power, which means that the US dollar depreciates in value and each US dollar is capable of buying fewer goods and services

  • The USDJPY pair is only bearish while trading below the 107.00 level, key technical support is found at the 106.00 and 104.50 levels.
  • If the USDJPY pair trades above the 107.00 level, buyers will likely test towards the 107.40 and 108.00 levels.

A screenshot of a cell phone

Description automatically generated

Wednesday 13th May, UK Consumer Price Index

The UK Gross Domestic Products is the market value of all final goods and services from the United Kingdom and usually calculated on an annual basis. Because most of the report components are known in advance, the actual UK GDP figure is usually well anticipated. The vigorous growth of the UK GDP is related to a healthy economy, while a negative UK GDP figure means that economic activity contracted.

  • The GBPUSD pair is only bearish while trading above the 1.2420 level, further losses towards the 1.2365 and 1.2300 levels remain likely.
  • If the GBPUSD pair trades above the 1.2420 level, buyers may test towards the 1.2640 and 1.2850 resistance levels.

Thursday 14th May, Australian Jobs Report

The Employment Change is released by the Australian Bureau of Statistics and measures the change in the number of employed people in Australia. Generally speaking, a rise in this indicator has positive implications for consumer spending which stimulates economic growth. Therefore, a high reading is seen as positive for the Australian dollar, while a low reading is seen as negative for the Australian dollar.

  • The AUDNZD pair is only bearish while trading below the 1.0725 level, key support is found at the 1.0650 and 1.0500 levels.
  • If the AUDNZD pair moves above the 1.0725 level, buyers will likely test towards the 1.0770 and 1.0830 resistance levels.

Friday 15th May, Chinese Industrial Production

Chinese Industrial Production is released by the National Bureau of Statistics of China and is an economic indicator that measures changes in output for the manufacturing, mining, and utilities. Industrial Production figures are also used by central banks to measure inflation, and are closely watched by market participants as China is considered to be the engine of the global economy.

  • The AUDUSD pair is only bearish while trading below the 0.6190 level, key support is found at the 0.5990 and 0.5800 levels.
  • If the AUDUSD pair trades above the 0.6190 level, buyers may test towards the 0.6600 and 0.6800 resistance

Add a comment