Crude oil prices rose overnight as investors remained optimistic about global demand as economies reopened. The price of Brent, the international benchmark, rose to more than $ 40, while West Texas Intermediate (WTI) rose to over $ 38. Investors are also waiting for an important OPEC + meeting to happen in the coming week. According to Bloomberg, Russia and Saudi Arabia are committed to continuing the supply cuts announced in May. Another catalyst was inventory data released by the American Petroleum Institute (API). Data showed that US stocks fell by more than 500k barrels after rising by $ 8.7m. Barrels a week before.
The Australian dollar rose to its highest level this year as the market responded to several figures from Australia. The building index in the country rose from the previous 21.6 in April to 24.9 in May, while the important PMI services rose from 19.5 to 26.9. Building permits in April fell by 1.8% after falling by 4.0% in the previous month. Meanwhile, the last reading of GDP in Q1 showed that the economy was up 0.3%. These numbers came a day after the RBA made its interest rate decision. They left the courses unchanged and promised to give them lows for a longer period when trying to stimulate the economy.
Looking ahead, we will receive the services PMI data from several countries, including those in the eurozone and the United States. In most countries, PMI services matter more because the sector creates the most jobs. Eg. In the UK, the service sector is responsible for approx. 70% of GDP. We also get the change of ADP, which is not the courtyard, for May. Analysts, Bloomberg has surveyed, expect the data to show that private wages fell by 9 million after falling 20 million a month before. We will also receive the data on crude oil stocks from the EIA and the Bank of Canada’s interest rate decision.
EUR / USD
The EUR / USD pair rose to a high of 1.1195, which is the highest it has been since March 16. On the four-hour chart, the price is above the 50-day and 100-day exponential moving averages. The RSI is above the overbought level of 70, while the price is above the 61.8% Fibonacci retracement level. The price may continue to rise as bulls try to move above 1,200.
AUD / USD
The AUD / USD pair rose to a high of 0.6880, which was the highest level since January 7. On the daily chart, the price is above the 50-day and 100-day exponential moving averages, while the Force index is above the neutral line. RSI has moved above the level of overbought. The pair may continue to rise as bulls try to move across the resistance at 1.1700.
USD / CAD
The USD / CAD pair fell to an intraday low of 1.3482 as the market awaited the BOC interest rate decision. It was the lowest it has been since March 3rd. On the four hour chart, the price is below the 50-day and 100-day exponential moving averages, while the RSI has moved to oversold levels. The pair may continue to decline as the price of crude oil continues to rise.