Tensions between the US and China escalates once again

On Thursday, China moved forward with a resolution to introduce national security laws in Hong Kong to quell protests that befall there.The proposal came after the US House of Representatives passed a bill on Wednesday, ruling out sanctions to Chinese officials involved in the suppression of Uighurs. It stemmed from the decision of the US that Hong Kong is no longer autonomous from China, making President Donald Trump take actions, such as the cancellation of special trade agreements, which is of great importance to many large US companies doing business in Hong Kong. However, despite all those dissents, the Chinese government still proceeded to ratify the so-called national security law, which supposedly tightens control over Hong Kong. The move further angered the United States, and the relations between the two countries continue to deteriorate.The increased hostility between Beijing and Washington over China’s human rights policies, including its relations with Hong Kong and the treatment of the Muslim minority, reinforces the demand of safe haven assets.”The souring US-China relations have returned to the forefront of the market,” wrote Jim Wyckoff, senior analyst at Kitco.com.Gold was also affected by the negative economic performance of the US dollar.US GDP has dropped by 5%, durable…

Australia Private Sector Credit Steady In April

Private sector credit in Australia was flat on month in April, the Reserve Bank of Australia said on Friday – following the 1.1 percent increase in March. On a yearly basis, credit rose 3.6 percent – unchanged from the March reading. Housing credit was up 0.2 percent on month and 3.1 percent on year, while personal credit dropped 3.0 percent on month and 9.3 percent on year and business credit added 0.1 percent on month and 6.7 percent on year. Broad money gained 2.9 percent on month and 9.3 percent on year. The material has been provided by InstaForex Company – www.instaforex.com…

South Korea Industrial Production Falls 6.0% In April

Industrial output in South Korea dropped a seasonally adjusted 6.0 percent on month in April, Statistics Korea said on Friday. That missed expectations for a decline of 3.2 percent following the 4.6 percent increase in March. On a yearly basis, industrial production sank 4.5 percent – again missing forecasts for a fall of 2.2 percent after rising 7.1 percent in the previous month. The Index of All Industry Production was down 2.5 percent on month and 5.0 percent on year. The Manufacturing Production Index in April fell 6.4 percent on month and 4.7 percent on year. The Manufacturing Shipment Index lost 7.2 percent on month and 7.3 percent on year. The Manufacturing Inventory Index eased 0.4 percent on month but added 2.5 percent on year. The Production Capacity Index in April eased 0.1 percent on month but climbed.8 percent on year. The Index of Capacity Utilization Rate dropped 7.7 percent on month and 8.5 percent on year. The Manufacturing Average Capacity Utilization Rate in April was 68.6 percent, down 5.7 percentage points from the previous month. The Index of Services gained 0.5 percent on month but lost 6.1 percent on year. The Retail Sales Index added 5.3 percent on month…

Japan Jobless Rate Climbs To 2.6% In April

The unemployment rate in Japan came in at a seasonally adjusted 2.6 percent in April, the Ministry of Internal Affairs and Communications said on Friday. That was beneath expectations for 2.7 percent but was up from 2.5 percent in March. The jobs to applicant ratio fell to 1.32, missing forecasts for 1.33 and down from 1.39 in the previous month. The number of employed persons in April was 66.28 million, a decrease of 800,000 from the previous year. The number of unemployed persons in April was 1.89 million, an increase of 130,000 from a year earlier. The material has been provided by InstaForex Company – www.instaforex.com…

Elliott wave analysis of EUR/JPY for May 29, 2020

EUR/JPY has rallied to a high of 119.39 or just above our ideal target at 119.31. This has completed wave iii/ and we should now see a correction in wave iv/. As wave ii/ was a simple deep zig-zag correction, we should expect a complex flat correction, that doesn’t correct more than 38.2% of wave iii/. Then the pair may try to hit 117.84. Wave v/ may climb to at least 120.30 and possibly even closer to 121.16 where we see solid resistance. In the short-term, a break below minor support at 118.45 will confirm that wave iii/ has peaked and wave iv/ is in motion. R3: 120.29R2: 119.65R1: 119.39Pivot: 118.80S1: 118.45S2: 118.20S3: 117.84Trading recommendation: We took profit of 75% of our long EUR position at 119.20 enjoying a nice profit of 355 pips. We will re-buy EUR at 118.00 The material has been provided by InstaForex Company – www.instaforex.com…

Japan Data To Be Released On Friday

Japan is scheduled to release a batch of data on Friday, headlining a busy day for Asia-Pacific economic activity. On tap are April figures for unemployment, industrial production, retail sales and housing starts, plus May figures for consumer confidence and Tokyo inflation. The jobless rate is expected to rise to 2.7 percent from 2.5 percent in March. Industrial production is tipped to fall 5.1 percent on month and 7.3 percent on year after sliding 3.7 percent on month and 5.2 percent on year in the previous month. Retail sales are expected to sink 6.6 percent on month and 11.5 percent on year after dropping 4.5 percent on month and 4.6 percent on year a month earlier. Housing starts are tipped to tumbled an annual 12.1 percent after falling 7.6 percent in March. Overall Tokyo inflation is called flat on year after adding 0.2 percent in April, while core CPI is tipped to fall 0.2 percent on year after easing 0.1 percent in the previous month. The consumer confidence index had a score of 21.6 in April. South Korea will provide April data for industrial production and retail sales. Industrial production is tipped to fall3.2 percent on month and 0.5 percent…

Forecast for EUR/USD on May 29, 2020

EUR/USD
Yesterday, investors’ expectations for positive US data did not materialize. The volume of orders for durable goods fell by 17.2% in April after a previous drop of 14.7%. The forecast was -19.0%, but of -17.2% optimism, of course, does not cause. The second estimate of GDP for the first quarter was revised down from -4.8% to -5.0% against the forecast without change (i.e. -4.8%). As a result, the dollar index lost -0.47%, the euro grew by 68 points, the S&P 500 fell by 0.21%.
Macro statistics do not have to wait for optimism to an even greater extent today. The forecast for personal incomes of consumers for April is -7.0%, for personal expenses -12.6% versus the March contraction of -7.5%. The index of business activity in the manufacturing sector of the Chicago region in May is expected to increase from 35.4 to 40.1, but here (in the spirit of the times) there is a great emotional component, so the data may turn out to be worse.
The euro is moving towards its first target of 1.1140 on the daily chart. Whether there will be a price reversal from this level or the euro will continue to grow higher…

Forecast for AUD/USD on May 29, 2020

AUD/USD
The Australian dollar is consolidating for the third day at the 0.6677 level (extremum of August 7, 2019, October 1, 2019, March 9, 2020, etc.). At first glance, this is a sign of continued growth, but if the price does not manage to do this before the Marlin oscillator signal line goes into the negative area, it will fall. The purpose of growth is the record level of 0.6820. In the event of a price reversal, the first goal will be to support the embedded line of the price channel at around 0.6470.
According to Marlin, divergence is observed on the four-hour chart, but the price is higher than the indicator lines of balance and MACD, which shows sufficient potential for continued growth, if not to the target level of 0.6820, then with the possibility of a false exit above the first target level of 0.6677. Departure of the price to the signal level of 0.6569 will confirm the Australian dollar in adherence to the main scenario – to initially drop to 0.6470, then to lower targets (0.6328, 0.6107).
The material has been provided by InstaForex Company – www.instaforex.com…