German PPI inflation and Australian jobs data
OIl=> The commodity rises towards 83.00
EUR/GBP=>The pair falls to 0.8650
Tesla=> The stock rises to $220
DAX falls ahead of wholesale inflation
After two straight days of gains, the DAX closed marginally lower. The German index, along with other global indices, had been buoyed by better-than-expected US banks’ earnings and stronger-than-forecast beating ZEW economic sentiment data earlier in the week. Yesterday the DAX fell lower as worries over inflation resurfaced. Eurozone inflation rose to a record high of 9.9% YoY in September, up from 9.1% in August. The preliminary figure showed a rise to 10%. The ECB is widely expected to hike the rate by 75 basis points next week. Today the DAX is falling as attention turns to German wholesale inflation (PPI). PPI is expected to cool modestly. Hotter than forecast PPI could pull the DAX lower.
| Ger. PPI | Expected: 44.7% (0.9%) | Previous: 45.8% |
Where might the DAX price head to?
The DAX is testing resistance at the 50 sma at 12850 ahead of the 100 sma at 13060. The RSI is over 50, which suggests that momentum supports further upside. Beyond 13060, buyers will look for a move over 13375, the falling trendline resistance ahead of 15375, the September high. Rising above this level creates a higher high. Should sellers successfully defend the 50 sma, bears could see the price test support at 12765, the October 4 high. Could a move below here open the door to 12000, last week’s low?
Philip Morris Q3 earnings preview
Philip Morris is expected to release Q3 earnings as the share price trades down 9% across the year, outperforming the broader market. The tobacco giant is likely to benefit from rising volumes and higher prices. However, forex headwinds are likely to weigh on overall revenue growth, given the 4% rise in the USD over the quarter. Earnings come as the firm aims to generate the majority of its revenue from smoke-free products within the next three years. The firm is looking at ways to purchase Swedish Match in a deal that would accelerate the growth of “heat- not-burn products.” Any news here could be watched closely. Philip Morris is expected to report a 14% drop in earnings to around $1.36 and a 10% fall in revenue to $7.27 billion.
AUD/USD falls after mixed jobs data
AUD/USD declined 0.7% in the previous session in risk-off trade and after hawkish comments from Federal Reserve officials. Treasury yields rose to a two-week high and Fed President Neel Kashkari highlighted that the Fed couldn’t pause rate hikes whilst core inflation continues rising. His comments and equally hawkish comments from Fed Bostic and Mester boosted the USD. Meanwhile, four-month high COVID cases in China dragged on the Aussie dollar. Today the pair is falling further after Australian jobs data showed that unemployment held steady, but the number of jobs added slowed dramatically to 0.9k, down from 35.5k in August
Support can be found at 0.6170 (2022 low) and 0.600 (round number).
Resistance for the pair can be seen at 0.6340 (weekly high) and 0.600 (round number).
