Wall Street rally extends as data matches China’s rebound
The rebound in China’s PMI numbers was echoed in the US, pushing Wall Street indices higher for a third day. It’s the RBA rate meeting today with a chance of a dovish bias. Brexit is still not decided.
US30USD Daily Chart
Source: OANDA fxTrade
- The US30 index rallied for a third day yesterday, touching the highest since October, as the March ISM manufacturing PMI beat estimates.
- The next possible resistance point could be the October high of 26,940.
- The ISM March manufacturing PMI hit 55.3, higher than economists’ forecast of 54.5. Today sees the release of durable goods orders for February, which are expected to fall 1.8% m/m.
DE30EUR Daily Chart
Source: OANDA fxTrade
- The Germany30 index ignored below-forecast PMI readings for Germany and the eurozone yesterday, instead of building on the positive sentiment from the China numbers and advancing for a sixth straight day, the longest winning streak since July last year.
- The index is testing the 200-day moving average resistance at 11,717. That average has capped prices on a closing basis since July 31
- German Markit manufacturing PMI weakened to 44.1, below estimates of 44.7 while the eurozone equivalent came in at 47.5, missing estimates of a 47.6 reading. ECB’s Praet is scheduled to speak today.
AU200AUD Daily Chart
Source: OANDA fxTrade
- The Australia200 index looks poised to rally for a fourth straight day today as the market awaits the RBA’s rate decision.
- The index has advanced to the highest in 3-1/2 weeks on hopes the RBA will adopt a more-dovish stance on interest rates, similar to other central banks in the region.
- Building permits were strong in February, rising 19.1% m/m after a 2.5% gain in January. The RBA announcement is scheduled for 1130 SGT.