AMERICAN ECONOMY ON TRACK WHILE EUROZONE DATA UNDERWHELMS INVESTORS
U.S DATA OUTPERFORMS EUROZONE
Economic data from the United States remained robust this week, whilst Europe's Manufacturing sector showed signs of a possible slowdown. The United States ISM Manufacturing headline figure held close to record highs this week, while the final EU Manufacturing PMI declined to 55.2. Germany, the powerhouse economy of Europe, also posted weaker Retail Sales figures, and declines in its Manufacturing and Services sectors. The U.S also posted stronger than expected private sector jobs numbers, with the March ADP jobs report hitting 241,000.
The EURUSD pair remains medium-term bearish whilst trading below the 1.2275 level, further declines towards the 1.2160 and 1.2095 levels remains possible.
Should the EURUSD pair move above the 1.2275 for a sustained basis, an upside correction towards the 1.2382 and 1.2430 level cannot be ruled out.
BITCOIN SELLERS PREVAIL
The cryptocurrency market remained under selling pressure this week, as regulations and security concerns weighed on overall sentiment. Bitcoin dropped below the $7,000 level, as the cryptocurrency exchange Binance faced log-in problems, which in turn raised concerns amongst digital currency investors and enthusiasts. Ethereum also traded below the $400 level, with the world's number two cryptocurrency by market capitalization having now lost 47.5 percent of its value during the first three month of 2018.
The BTCUSD pair remains bearish whilst trading below the $7,200 level, further losses towards the $6,400 and $5,000 levels seems possible.
Should the BTCUSD pair move above the $7,200 mark, buyers may then push towards the $7,550 and $7,880 resistance points.
U.S DOLLAR EDGES HIGHER
The U.S dollar moved higher against a basket of top-tier currencies this week, as demand for greenbacks set the trading tone for the start of the new month of April. Strong domestic data from the American economy, and technical buying in the U.S dollar index above the 90.00 level supported overall dollar demand. The U.S dollar outperformed so called safe-haven currencies, such as the yen and Swiss franc, with USDJPY pair making gains above the 107.00 level, while the UDCHF pair performed a key technical breakout above the 95.60 level.
The USDCHF pair remains bullish whilst trading above the 0.7560 level, further upside toward the 0.9680 and 0.9740 levels seems possible.
Should the USDCHF pair move back below the 0.7560 level, a deeper decline towards the 0.7520 and 0.7480 levels remains possible.
RBA STILL ON HOLD
The Reserve Bank of Australia kept interest rates on hold for an eighteenth straight month this week, maintaining the countries interest rate at a record-low, 1.50 percent. RBA policy makers noted a strengthening Australian dollar, and trade tensions between the United States and China as possible causes of concern going forward. The Australian dollar mostly traded towards the bottom-end of its recent range against the greenback, although the AUDUSD pair briefly spiked towards the 0.7725 level, on better than expected Australian Retail Sales numbers.
The AUDUSD pair remains bearish whilst trading below the 0.7725 level, further downside towards the 0.7580 and 0.7550 levels seems possible.
Should the AUDUSD pair move above the 0.7725 level, buyers may then test towards the 0.7755 and 0.7788 levels.