Market Review 12 May 2020

by Constantinos Loizou

  • In today’s Economic calendar we can expect to see some volatility in the AUD and USD.
  • At 08:30 (GMT), the Australian Government will release their yearly budget.
  • At 12:30 (GMT), the US Bureau of Labor Statistics will release their Consumer Price Index (CPI*)
  • That number measures the price movements by the comparison between the retail prices of a representative shopping basket of goods and services.
  • The result is forecasted in a decrease to -0.2%, considering that last month was at -0.1%.
  • At 18:00 (GMT), the Financial Management Service of the USA will release their Monthly Budget Statement.
  • That number summarizes the financial activities of federal entities, disbursing officers, and Federal Reserve banks.
  • The previous month the result was -$119B


On the charts


  • As we can observe on the USD/CNH* daily chart, the price has formed a nice downward trading channel (red)
  • The channel has been broken to the upside a few days ago, but the price returned and retested the trendline of it
  • The price is now at 7.10260, above the 20 days Moving Average (purple)
  • The MACD and its signal line are both above zero, indicating some bullish attitude
  • Considering the above and if the price remains above the 20 days Moving Average, there is a possibility to see the pair moving higher to 7.15700, the previous resistance area