Trading Insights: Saudi cuts 1m barrels per day; US ISM services up next
Market talk and ideas
Chart 1 Brent Crude Oil as of June 5 2023 6:46 UTC
The above chart illustrates Brent Crude price action following the announcement that Saudi Arabia will cut its daily oil production by 1 million barrels.
Today’s economic calendar
The US services industry is expected to have grown last month. SP500 index in the spotlight, the index is up +1.7% during the last five days and +10% year to date.
US ISM Services PMI measures business activity across the services sector
- Above 50 indicates that the industry is expanding
- Below 50 indicates that the industry is declining
The US services sector looks set to continue to expand, the current ISM service reading is 51.9 with today’s data expected to show a reading of 52.5.
Source: TradingView / J. Knobel June 5 2023 6:13 UTC
Commentary & insights
Reserve Bank of Australia (RBA) rate decision due on Tuesday (Tomorrow)
- Expected that the RBA will hike 0.25%, lifting the official cash rate to 4.1%
- Increasing wages and “sticky” inflation are seen as the motive behind the expected rate hike
AUD/JPY prospects for upside price extension
Chart 2 AUD/JPY as of June 5 2023 7:09 UTC
AUD/JPY current price 90.507 (chart 2) is above its 10 week moving average (bullish). The fact that both the 6 and 13 week rate of change (ROC) indicators are above their respective signal lines (zero line), and that price seems to have found support at the 90.13 level (chart 2), could support the case for price to extended towards the 99.65 level over the next 10 weeks. Downside risk below 90.13.
Not investment advice. Past performance does not guarantee or predict future performance.
Chinese property giant Evergrande's default places additional pressure on stocks. Oil prices dip while US treasury yield...
Bank of Japan made the decision to keep rates in negative territory earlier today, bolstering the EUR/JPY and USD/JPY cu...