Tesla earnings and German inflation under the spotlight

Tesla => The stock trades above $1000
AUD/JPY => The pair rises above 95.00
DAX => The index rises to 14200

Tesla Q1 earnings preview

Tesla Q1 earnings are due to be announced after the market closes today.

Tesla has already released vehicle delivery numbers which rose to a record 310,048 deliveries in the first three months of the year. This marks the seventh straight record quarter for deliveries and comes, despite supply chain bottlenecks and factory shutdowns.

Wall Street is expecting earnings per share (EPS) of $2.27 on revenue of $17.8 billion. The market will be looking closely at Tesla’s ability to pass rising prices onto its customers in order to maintain margins and any progress at its new factories in Texas and Berlin. 

Where next for Tesla share price?

Tesla’s share price has lost momentum across recent months and trades below a falling trendline dating back to early November’s all-time high.

The price has stabilized around $1000, with the 100 sma providing support at $970. Stronger than expected results could see the share price propel higher towards the $1100 level, with a move over $1150 making a higher high.

Disappointing numbers could see the price head through the 100 sma, with support seen at $935 the 50 sma towards $900.

AUD/JPY rises to a 7-year high

The Australian dollar rallied against the Japanese yen yesterday, ending the day 1.8% higher on central bank divergence.

The hawkish minutes from the latest RBA meeting buoyed the Aussie, lifting expectations of a rate hike. Meanwhile, the BoJ remains firmly dovish in its outlook, which has pulled the yen lower across the board.

AUD/JPY rose to a 7-year high, while USD/JPY rose to a fresh 20-year high as the yen experienced its longest falling streak in 50 years. Overnight the PBoC held steady on rates but had announced more supportive measures for the Chinese economy earlier in the week, as parts of the country remain affected by COVID lockdown restrictions. Looking ahead, Australian retail sales are due to be released on Wednesday.

DAX looks to German PPI data

The DAX edged lower in the previous session after the IMF downgraded global growth forecasts, with Europe one of the worst affected.

The IMF saw global growth slowing to 3.6%, down from 4.4% previously forecast. The Washington-based body expects the eurozone to be one of the worst affected regions, slashing growth to 1.7%, down from 2.7%, amid rising food and energy prices.

Today the DAX is rising after a strong close on Wall Street overnight. Attention will shift towards German wholesale inflation as measured by the producer price index, which is expected to rise to a fresh record high in March as energy prices jumped amid the start of the Russian war.

Support can be found at 13900 (April 12 low) and 13500 (March 15 low).

Resistance for the index can be seen at 14295 (50 sma) and 14600 (April high).

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