logo
Analysis

Dollar down and gold up as JOLTS disappointed

BY Janne Muta

|April 5, 2023

Markets reacted bearishly yesterday after the JOLTS job openings came in well below expectations and the previous month's reading. The number of job openings decreased to 9.9 million in February. This was the lowest reading since 2021. The number was also sharply lower than January’s number which was revised to 10.6 million. Equities closed slightly lower with the bond market rallying strongly. This pushed the yields down and boosted gold.

Inline Question Image

As the market's focus is on employment data, today's ADP report and ISM services PMI release are likely to provide us with added volatility and more trading opportunities. Keep an eye on Gold, DJ, NAS and DAX.

Inline Article Image

DAX

Dax shows signs of weakness near the resistance created in February this year (15 708). After three days of rallying and one sideways day, the market created a daily rejection candle. This is bearish and increases the risk of a market correction. A decisive break below 15 550 would be likely to lead the market down to 15 380 and then to 15 260 on extension. Alternatively, above yesterday's high the market could trade down to 15 850.

Inline Article Image

Gold

Gold is bullish above 2018. Below the level, the market could retrace to 2005 or so. Above the 2018 level, the market could move to 2050. Earlier range trading changed to a strong range breakout after the market created a higher swing low at 1977 and penetrated the 1990 resistance level. The move was supported by dollar weakness, lower yields and general risk aversion in the markets.

Inline Article Image

NZDUSD

NZDUSD is bullish above 0.6310 after a higher-than-expected interest rate hike from the RBNZ (50 bp vs. 25 bp expected). The nearest resistance area is at 0.6390 - 0.6412. Below the 63.10 level, the nearest support level is at 0.6275.

Inline Question Image

Inline Article Image

EURCAD

EURCAD broke out of a bearish trend channel and is now bullish above 1.4670. The nearest support level is at 1.4718 and above the level, the market could rally to 1.4760 and then to 1.4820 on extension. If the 1.4718 breaks a retracement to 1.4670 could be in the cards.

The Next Main Risk Events

  • USD ADP Non-Farm Employment Change
  • USD ISM Services PMI
  • CAD Employment Change
  • CAD Unemployment Rate
  • USD Unemployment Claims
  • CAD Ivey PMI
  • USD Average Hourly Earnings m/m
  • USD Non-Farm Employment Change
  • USD Unemployment Rate

For more information and details see the TIOmarkets economic calendar.

Trade Safe!

Janne Muta
Chief Market Analyst
TIOmarkets.com

DISCLAIMER TIOmarkets offers exclusively consultancy-free service. The views expressed in this blog are our opinions only and made available purely for educational and marketing purposes and do NOT constitute advice or investment recommendation (and should not be considered as such) and do not in any way constitute an invitation to acquire any financial instrument or product. TIOmarkets and its affiliates and consultants are not liable for any damages that may be caused by individual comments or statements by TIOmarkets analysis and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his/her investment decisions. The analyzes and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with any legal requirements for financial analysis and must, therefore, be viewed by the reader as marketing information. TIOmarkets prohibits duplication or publication without explicit approval. FX and CFDs are leveraged products. They are not suitable for every investor, as they carry a high risk of losing your capital. Please ensure you fully understand the risks involved. All the prices in this report are CFD prices based on price charts provided by TIOmarkets unless otherwise stated.

Join us on social media

image-35e46d7235a6e5e76853cfbb4fdb2b38d7e320d8-150x150-png
Janne Muta

Janne Muta holds an M.Sc in finance and has over 20 years experience in analysing and trading the financial markets.

24/7 Live Chat

Trade responsibly: CFDs are complex instruments and come with a high risk of losing all your invested capital due to leverage.