The quarterly inflation report from New Zealand saw consumer prices rising at a slower pace than forecast. Data from Statistics New Zealand showed that the consumer price index rose 0.1% in the first three months of the year.
This was well below estimates of a 0.3% increase and inflation grew at the same pace as Q4 2018.
The NZD is down 0.64% at the time of writing.
Euro Eases Despite Rising Economic Sentiment
The eurozone ZEW economic sentiment index released yesterday saw an increase in the index from -2.5 to 4.5 in April. The solid rebound came with Germany’s ZEW economic sentiment index also rising. Investor confidence in Germany rose to a 13-month high, bringing optimism of a rebound in the eurozone’s economy.
Will EURUSD Break Out Above 1.1300?
The EURUSD retreated off the highs after briefly testing the 1.1300 handle. The retracement saw price falling back to 1.1258. With support forming here, a rebound in the EURUSD is likely. The next main target is at the 1.1330 handle. If the common currency manages to break this level, we anticipate a move toward 1.1400.
Gold Falls for the Fourth Session, 200-day MA Stalls Declines
Gold prices extended declines for the fourth consecutive session, losing 0.83% on the day after pulling back from a 4-month low. Sentiment was already weak but only grew steady as Chicago Fed President Evans said that he expects one more rate hike by 2020. Similar views came from Boston Fed President Rosengren who stated that the economy was doing quite well.
Will XAUUSD Rebound to the Upside?
The declines in the XAUUSD saw the price of the precious metal falling to the 200-day moving average on a daily basis. Price posted a modest pullback following this decline. We expect the bearish momentum to slow as a result. A pullback is quite possible in gold prices with the recently breached support of 1285 likely to serve as resistance.
Oil Rebounds on Weekly API Draw
WTI crude oil caught a bid after the weekly report from the American petroleum institute on Tuesday saw a draw in oil inventories. According to the API data, US crude oil inventory fell 3.09 million barrels for the week ending April 12th. This was in contrast to expectations of a 1.71 million build-up in inventory. Oil traders wait for the official data from EIA today.
Can Crude Maintain the Momentum to the Upside?
Oil prices rebounded sharply on the day as it reclaimed the previous highs near 64.55. However, with the bearish divergence, there is scope for price to erase the gains once again. But despite this, there is a risk of oil prices inching higher to test the 65 – 66 level where resistance is most likely to form. In the short term, we expect oil prices to trade flat within 64.55 and 63.20 corridor.