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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

71% of retail investor accounts lose money when trading CFDs with this provider.

Market Insights

Trading Insights: Saudi cuts 1m barrels per day; US ISM services up next

Copy of Blog Images - Skilling - 2023-06-05T121253.378

Market talk and ideas

Screenshot 2023-06-05 121456
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.

Screenshot 2023-06-05 121806
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

Screenshot 2023-06-05 122012
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.

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Not investment advice. Past performance does not guarantee or predict future performance.