America’s Roundup: Dollar gains on renewed U.S.-China trade tension, Wall street gains ,Gold gains, Oil up 3% as countries ease lockdowns-5th May 2020

Market Roundup

• US All Car Sales 1.95M , 2.86M previous

• French 12-Month BTF Auction-0.462%    , -0.403% previous    

• French 3-Month BTF Auction -0.475%,    -0.454% previous

• French 6-Month BTF Auction-0.455%,-0.427% previous

• Brazil April Markit Manufacturing PMI  36.0, 48.4 previous    

• US April ISM NY Business Conditions  4.3%, 12.9% previous

• US ISM-New York Index 826.5,      849.3 previous    

• US March Durables Excluding Defense (MoM) -16.0%,    -15.8% previous    

• US March Factory Orders (MoM) -10.3%, -9.7% forecast, 0.0% previous  
     
• US March Factory orders ex transportation (MoM) -3.7%,  -0.9% previous    

Looking Ahead - Economic Data (GMT)

• 22:30 New Zealand April AIG Construction Index   37.9 previous

• 22:30 New Zealand March Building Consents (MoM)  4.7% previous

• 22:30 New Zealand Services PMI 19.6 forecast, 38.5 previous 

• 01:00 New Zealand ANZ Commodity Price Index (MoM) -2.1%    previous

Looking Ahead - Events, Other Releases (GMT)

• 04:30 Australia May RBA Interest Rate
Decision 0.25% forecast, 0.25% previous

• 04:30 Australia RBA Rate Statement 

Currency summaries       

EUR/USD: The euro dipped against dollar on Monday, as concern about another growing trade spat between the United States and China over the coronavirus crisis also weighed euro.  The threat of fresh U.S. tariffs on China battered risk appetite, given that Washington and Beijing were yet to fully deescalate their nearly two-year long trade war.At (GMT 12:00), the euro was last trading down 0.37% at 1.0938. Immediate resistance can be seen at 1.0992 (Higher BB), an upside break can trigger rise towards 1.1020 (May 1st high).On the downside, immediate support is seen at 1.0908 (21 DMA), a break below could take the pair towards 1.0860 (9 DMA).

GBP/USD:  Sterling declined against dollar on Monday, as re-escallation of U.S.-China tensions increased appetite for dollar. The United States made a renewed effort to blame China for the coronavirus outbreak. U.S. Secretary of State Mike Pompeo said on Sunday there was evidence the virus, which has killed nearly a quarter of a million people globally, was made in a Chinese laboratory.  Immediate resistance can be seen at 1.2478 (5 DMA), an upside break can trigger rise towards 1.2500 (Psychological level).On the downside, immediate support is seen at 1.2417 (11 DMA), a break below could take the pair towards 1.2369 (30 DMA).

USD/CAD: The Canadian dollar weakened to an 11-day low against the greenback on Monday as rising tensions between the U.S. and China over the origin of the coronavirus weighed on risk appetite. The Canadian dollar was trading 0.1% lower at 1.4094 to the greenback. The currency, which gained 0.1% last week, touched its weakest intraday level since April 23 at 1.4151. Immediate resistance can be seen at 1.4101 (50 % fib), an upside break can trigger rise towards 1.4159 (38.2% fib).On the downside, immediate support is seen at 1.4067 (30 DMA), a break below could take the pair towards 1.4035 (21 DMA).

USD/JPY: The dollar declined against the Japanese yen on Monday,as as a spat between top U.S. officials and China over the origin of the coronavirus fuelled fears of a new trade war. The U.S. dollar dipped against yen amid fears that last year’s U.S.-China dispute would be reignited, this time over the origins of the pandemic that has stalled economies around the world. Immediate resistance can be seen at 106.89 (5 DMA), an upside break can trigger rise towards 107.13 (9 DMA ).On the downside, immediate support is seen at 106.36 (Lower BB), a break below could take the pair towards 106.00  (Psychological level). 

Equities Recap

European stocks ended lower on Monday as investors were greeted with fresh Sino-U.S. tensions following a May Day break, after Washington threatened tariffs against China over the coronavirus.

UK's benchmark FTSE 100 closed down by 0.16 percent, Germany's Dax ended down by 3.40 percent, France’s CAC finished the day down by 4.24 percent.

The S&P 500 and Dow Jones dropped for the third session on Monday following a U.S.-China spat over the origins of the coronavirus outbreak and billionaire Warren Buffett’s Berkshire Hathaway’s move to dump stakes in major U.S. airlines.

Dow Jones closed up by 0.11 percent, S&P 500 ended up by 0.42 percent, Nasdaq finished up by 1.24 percent.

Treasuries Recap

U.S. Treasury yields ended little changed on Monday, as heavy corporate debt issuanc weighed on prices and brought yields off session lows after an early round of safe-haven buying. Yields fell early on concerns about rising tensions between China and the United States, which has threatened to retaliate over the spread of the novel coronavirus.

Benchmark 10-year note yields were last 0.64%, unchanged from Friday. The yields have held in a tight band between 0.543% and 0.785% for the past month.

Commodities Recap

Gold prices rose on Monday as U.S. President Donald Trump's threat to impose tariffs on China over the coronavirus crisis overshadowed optimism about economies easing lockdown measures,  driving investors away from riskier assets.

Spot gold  was up 0.2% at $1,701.63 an ounce by 1227 GMT. U.S. gold futures rose 1% to $1,717.60.

Oil was up 3% on Monday as more countries announced they would begin easing coronavirus lockdowns and as crude supply cuts by the world’s top producing nations and companies take hold.

Brent crude  settled at $27.20 a barrel, up 76 cents, or 2.9%, while U.S. West Texas Intermediate (WTI) crude  gained 61 cents, or 3.1%, to $20.39 a barrel.