United States macroeconomic data points continue to shine
The United States posted another string of incredibly data points this week, with inflation, retail sales, and weekly jobs data all posting positive surprises. The United States Consumer Price Index inflation reading jumped to 9.1 percent, marking the sharpest increase in nine years. The strong CPI number was also complimented by a bumper US Retail Sales number for March, which showed a massive 9.8 percent monthly advance. Weekly jobless claims also fell by nearly 200,000 from the previous week to a new pandemic low. The overall market reaction saw stocks surging and bond yields falling, although the US dollar failed to follow through, and remained under pressure.
- The S&P 500 is only bearish while trading below the 4,060 level, key support is found at the 4,000 and 3,960 levels.
- The S&P 500 only bullish while trading above the 4,060 level, buyers may test towards the 4,200 and 4,500 resistance levels.
Coinbase’s initial public offering captured the imagination of traders across the world this week, as the regulated US crypto exchange entered the Nasdaq. The listing of Coinbase on a major US exchange had been seen as a major milestone for the cryptocurrency industry. On the day of the IPO Coinbase’s share price spiked towards the $430.00 resistance level a reserve listing price of $250.00. News that Turkey was moving to ban cryptocurrency payments hit Bitcoin and the altcoin space this week, with the Turkish central bank putting the ban in place on April 30th this year. Bitcoin peaked close to $60,000 this week, and then fell back towards the $60,000 level on the bearish news surrounding Turkey.
- The BTCUSD pair is only bearish while trading below the $60,000 level, key support is found at the $58,000 and $55,000 levels.
- If the BTCUSD pair trades above the $60,000 level, buyers may test towards the $63,500 and $65,000 resistance levels.
The Australian dollar moved above the 0.7700 level this week after the nations monthly jobs report almost doubled the market's expectations. The March unemployment report from the Australian economy showed that 71,000 new jobs were created last month, which was one of the strongest monthly jobs numbers since the COVID-19 pandemic began. The unemployment rate also dropped by 0.2 percent from last month, taking the official unemployment rate down to 5.6 percent. Data also showed the Australian labour participation moving to a new record high of 66.3 percent during the month of March.
- AUDUSD is only bullish while trading above the 0.7650 level, key resistance is found at the 0.7770 and 0.7810 levels.
- AUDUSD is only bearish while trading below the 0.7650 level, key support is located at the 0.7610 and 0.7580 levels.
The FTSE 100 stormed above the 7,000 level this week as the United Kingdom economy coming out lockdown boosted optimism towards UK stocks. Financial, energy, and retail stocks inside the FTSE100 index, which is considered to be the leading UK index, all rallied sharply. The early rollout of the COVID-19 vaccine has meant that the United Kingdom economy is amongst the first to come out lockdown in Europe. The FTSE250 in the United Kingdom, which is made up Blue Chip companies, also rallied to a new all-time record high this week as traders and investors turned increasingly bullish towards the United Kingdom’s economic outlook.
- The GBPUSD pair is only bearish while trading below the 1.3670 level, key support is found at the 1.3500 and 1.3370 levels.
- The GBPUSD pair is only bullish while trading above the 1.3670 level, buyers may test towards the 1.3840 and 1.3900 resistance levels.