Tesla and Netflix Earnings Awaited as Wall Street Records Upward Momentum.

Introduction

In the latest market update, U.S. stocks closed higher on Monday as investors eagerly awaited the upcoming batch of quarterly results during the earnings season. Financial and technology firms played a significant role in driving the positive momentum. This news article will delve into the market update, providing insights into the earnings season and highlighting key events from the Asia session. Additionally, it will explore the implications for the Europe and U.S. sessions, focusing on the Dollar Index (DXY), the Australian Dollar (AUD), and the Kiwi Dollar (NZD). Let’s dive in!

Wall Street Performance

Wall Street witnessed a positive trading week, with U.S. stocks ending higher on Monday. The upward trajectory was propelled by advancements in financial and technology companies. Notable companies, such as Tesla (TSLA.O) and Netflix (NFLX.O), are scheduled to report their earnings this week. Moreover, renowned banking institutions including Bank of America (BAC.N), Morgan Stanley (MS.N), and Goldman Sachs (GS.N) are also expected to release their earnings reports following last week’s reports from competitors like JP Morgan (JPM.N) and Citigroup (C.N). The market is keenly observing the business outlooks of these companies, considering the anticipated 8.1% decrease in earnings for the quarter, as revealed by Refinitiv data. This projection represents a slight deviation from the initial 5.7% reduction forecasted earlier this month.

Asia Session Highlights

During the Asia session, the Reserve Bank of Australia (RBA) publicly disclosed the minutes of its July 4 monetary policy meeting. The board exhibited a hawkish tone, indicating its readiness to lower inflation. Despite a decline in domestic inflation, the labor market remains remarkably tight, and service inflation continues to be robust. Consequently, the Australian dollar experienced an increase, reaching 0.6840 upon the release of the minutes.

Implications for Europe & U.S. Sessions

Given the limited economic data releases expected during the Europe session, the afternoon could be relatively calm, with most currency pairs trading within a narrow range. Notably, the markets may experience potential shocks from significant events scheduled later in the day, including Canadian inflation data, U.S. retail sales, and industrial output statistics.

The Dollar Index (DXY)

Today’s Key News Events:

1. Retail Sales
2. Industrial Production

Anticipated Developments for DXY:

Future data on retail sales and industrial production will provide valuable insights into the performance of consumer spending and manufacturing activity in the United States. The most recent ISM manufacturing PMI survey indicates that the activity remains in contraction territory. Consequently, another disappointing print for industrial production may further underscore this trend. It is essential to consider various factors, including labor market conditions, inflation pressures, inflation expectations, and international and financial developments when assessing potential adjustments to monetary policy. The upcoming meeting of the Committee is scheduled for July 26, 2023.

Next 24 Hours Bias: Medium Bearish

The Australian Dollar (AUD)

Today’s Key News Events:

Monetary Policy Meeting Minutes

Expectations for AUD:

The release of the RBA’s July 4th monetary policy meeting minutes has revealed a preparedness to address inflationary concerns. The hawkish tone conveyed by the board signals a willingness to lower inflation despite a decline in domestic inflation rates. Notably, the labor market remains tight, and service inflation remains strong.

Central Bank Notes:

• The RBA increased the cash rate target by 25 basis points to 4.10%.
• Inflation in Australia has peaked but remains high at 7% and requires a return to the target range.
• Further tightening of monetary policy may be necessary.
• The next meeting is scheduled for August 1, 2023.

Next 24 Hours Bias: Medium Bullish

The Kiwi Dollar (NZD)

Today’s Key News Events:

CPI

Expectations for NZD:

New Zealand’s inflation has exhibited a significant decline, with the latest readings expected to confirm this trend. While the Kiwi Dollar has shown upward movement, finding support at 0.6320, the release of inflation figures later in the day could potentially impact its momentum.

Central Bank Notes:

• The Monetary Policy Committee has maintained the OCR steady at 5.50%.
• The Committee believes that maintaining interest rates at a restrictive level will support the return of inflation within the annualized target range of 1% to 3%, while simultaneously facilitating maximum sustainable employment.
• The consensus within the Committee favors leaving the OCR unchanged at 5.50%.
• Restrictive interest rates are necessary to ensure inflation returns to the target range while supporting maximum sustainable employment.
• The next meeting is scheduled for August 16, 2023.

Next 24 Hours Bias: Weak Bullish

Global Markets Overview

Asian Stock Markets:

• Nikkei: Up 0.32%
• Shanghai Composite: Down 0.41%
• Hang Seng: Down 1.98%
• ASX: Down 0.20%

European Equities:

• DAX futures: Down 0.23%
• CAC 40: Down 1.12%
• FTSE: Down 0.38%

U.S. Stock Market:

• Dow Jones: Up 0.22%
• S&P 500: Up 0.39%
• Nasdaq 100: Up 0.93%

Commodities:

• Gold: $1959.99 (+0.3%)
• Silver: $24.88 (+0.33%)
• Brent Oil: $78.61 (+0.14%)
• WTI Oil: $74.23 (+0.22%)

Noteworthy News & Data:

• (AUD) RBA Monetary Policy Statement at 07:00
• (CAD) Core CPI (MoM) (Jun) Forecast: 0.5%, Previous: 0.4% at 18:00
• (USD) Core Retail Sales (MoM) (Jun) Forecast: 0.3%, Previous: 0.1% at 18:00
• (USD) Retail Sales (MoM) (Jun) Forecast: 0.5%, Previous: 0.3% at 18:00
• (CAD) RMPI (MoM) (Jun) Forecast: -0.2%, Previous: -4.9% at 18:00

GBPUSD: Technical Analysis Points Towards a Buy Outlook

Introduction

This news we analyzes the technical indicators for GBP/USD (British Pound/U.S. Dollar) and provides trade suggestions based on the findings. By examining various moving averages, oscillators, and support/resistance levels, traders can gain valuable insights into market trends and make informed decisions.

Exponential Moving Average

• EMA 5: The 5-day EMA stands at 1.3083, indicating a Buy sentiment.
• EMA 20: The 20-day EMA displays 1.3002, reinforcing a Buy indication.
• EMA 50: With a value of 1.2871, the 50-day EMA aligns with a Buy recommendation.

Simple Moving Average

• SMA 5: The 5-day SMA shows 1.3079, indicating a Sell sentiment.
• SMA 20: The 20-day SMA records 1.2998, supporting a Buy stance.
• SMA 50: The 50-day SMA stands at 1.2822, signifying a Buy indication.

RSI (Relative Strength Index)

The RSI, calculated over a 14-day period, displays a reading of 68.94, suggesting a Buy signal.

Stochastic Oscillator

The %K value of the Stochastic Oscillator suggests a neutral condition.

Resistance And Support Levels

• Resistance: The resistance level is identified at 1.3086.
• Support: The support level is observed at 1.3051.

Summary And Trade Suggestions

Based on the technical analysis, GBP/USD presents a Buy outlook. Traders may consider entering a long position, considering the indicators, moving averages, and oscillators.

Trade Suggestion:

• Entry Point: 1.3133
• Take Profit: 1.3184
• Stop Loss: 1.3091

EURUSD: Technical Analysis Points Towards a Strong Buy Sentiment

Exponential Moving Average

• EMA 5: The 5-day EMA stands at 1.1238, indicating a Buy signal.
• EMA 20: The 20-day EMA is at 1.1143, signaling a Buy sentiment.
• EMA 50: The 50-day EMA currently sits at 1.1032, suggesting a Buy indication.

Simple Moving Average

• SMA 5: The 5-day SMA shows a value of 1.1239, reinforcing the Buy recommendation.
• SMA 20: With a value of 1.1127, the 20-day SMA also supports a Buy sentiment.
• SMA 50: The 50-day SMA registers at 1.0992, affirming a Buy indication.

RSI (Relative Strength Index)

The RSI, calculated over a 14-day period, stands at 81.8, signifying a Buy signal.

Stochastic Oscillator

The %K value of the Stochastic Oscillator suggests a Neutral stance.

Resistance And Support Levels

• Resistance: The resistance level is observed at 1.1253.
• Support: The support level is identified at 1.1203.

Summary And Trade Suggestions

In summary, the technical analysis of EURUSD points towards a Strong Buy sentiment. Considering the indicators, moving averages, and oscillators, it seems favorable for traders to enter a long position.

Trade Suggestion:

• Entry Point: 1.1272
• Take Profit: 1.1314
• Stop Loss: 1.1238

AUDUSD: Technical Analysis Indicates a Buy Sentiment

Exponential Moving Average

• EMA 5: The 5-day EMA stands at 0.6819, indicating a Sell signal.
• EMA 20: The 20-day EMA is at 0.6783, signaling a Buy sentiment.
• EMA 50: The 50-day EMA currently sits at 0.6737, suggesting a Buy indication.

Simple Moving Average

• SMA 5: The 5-day SMA shows a value of 0.6737, reinforcing the Buy recommendation.
• SMA 20: With a value of 0.6772, the 20-day SMA also supports a Buy sentiment.
• SMA 50: The 50-day SMA registers at 0.6701, affirming a Buy indication.

RSI (Relative Strength Index)

The RSI, calculated over a 14-day period, stands at 58.02, signifying a Buy signal.

Stochastic Oscillator

The %K value of the Stochastic Oscillator suggests a neutral stance.

Resistance And Support Levels

• Resistance: The resistance level is observed at 0.6831.
• Support: The support level is identified at 0.6787.

Summary And Trade Suggestions

In summary, the technical analysis of AUDUSD points towards a Buy sentiment. Considering the indicators, moving averages, and oscillators, it seems favorable for traders to enter a long position.

Trade Suggestion:

• Entry Point: 0.6839
• Take Profit: 0.6868
• Stop Loss: 0.6813

USDJPY: Technical Analysis Indicates a Sell Sentiment

Exponential Moving Average

• EMA 5: The 5-day EMA stands at 138.47, indicating a Sell signal.
• EMA 20: The 20-day EMA is at 139.56, signaling a Sell sentiment.
• EMA 50: The 50-day EMA currently sits at 140.93, suggesting a Sell indication.

Simple Moving Average

• SMA 5: The 5-day SMA shows a value of 138.57, reinforcing the Sell recommendation.
• SMA 20: With a value of 139.43, the 20-day SMA also supports a Sell sentiment.
• SMA 50: The 50-day SMA registers at 142.23, affirming a Sell indication.

RSI (Relative Strength Index)

The RSI, calculated over a 14-day period, stands at 30.48, signifying a Sell signal.

Stochastic Oscillator

The %K value of the Stochastic Oscillator suggests a negative stance.

Resistance And Support Levels

• Resistance: The resistance level is observed at 138.70.
• Support: The support level is identified at 138.12.

Summary And Trade Suggestions

In summary, the technical analysis of USDJPY points towards a Sell sentiment. Considering the indicators, moving averages, and oscillators, it seems favorable for traders to enter a short position.

Trade Suggestion:

• Entry Point: 137.95
• Take Profit: 137.20
• Stop Loss: 138.49

HANG SENG: Technical Analysis Suggests a Sell Sentiment

Exponential Moving Average

• EMA 5: The 5-day EMA stands at 19159.53, indicating a Sell signal.
• EMA 20: The 20-day EMA is at 19095.25, signaling a Sell sentiment.
• EMA 50: The 50-day EMA currently sits at 19055.16, suggesting a Sell indication.

Simple Moving Average

• SMA 5: The 5-day SMA shows a value of 19211.4, reinforcing the Sell recommendation.
• SMA 20: With a value of 19004.65, the 20-day SMA also supports a Buy sentiment.
• SMA 50: The 50-day SMA registers at 18950.32, affirming a Buy indication.

RSI (Relative Strength Index)

The RSI, calculated over a 14-day period, stands at 44.43, signifying a neutral signal.

Stochastic Oscillator

The %K value of the Stochastic Oscillator suggests a negative stance.

Resistance And Support Levels

• Resistance: The resistance level is observed at 19111.
• Support: The support level is identified at 18980.

Summary And Trade Suggestions

In summary, the technical analysis of HANG SENG suggests a Sell sentiment. Considering the indicators, moving averages, and oscillators, it seems favorable for traders to enter a short position.

Trade Suggestion:

• Entry Point: 18910
• Take Profit: 18752
• Stop Loss: 19040

BRENT CRUDE OIL: Technical Analysis Points Towards a Sell Sentiment

Exponential Moving Average

• EMA 5: The 5-day EMA stands at 78.80, indicating a Sell signal.
• EMA 20: The 20-day EMA is at 78.79, signaling a Sell sentiment.
• EMA 50: The 50-day EMA currently sits at 72.49, suggesting a Buy indication.

Simple Moving Average

• SMA 5: The 5-day SMA shows a value of 77.49, reinforcing the Sell recommendation.
• SMA 20: With a value of 79.14, the 20-day SMA also supports a Sell sentiment.
• SMA 50: The 50-day SMA registers at 76.68, affirming a Buy indication.

RSI (Relative Strength Index)

The RSI, calculated over a 14-day period, stands at 51.21, signifying a Buy signal.

Stochastic Oscillator

The %K value of the Stochastic Oscillator suggests a negative stance.

Resistance And Support Levels

• Resistance: The resistance level is observed at 79.29.
• Support: The support level is identified at 78.42.

Summary And Trade Suggestions

In summary, the technical analysis of BRENT CRUDE OIL points towards a Sell sentiment. Considering the indicators, moving averages, and oscillators, it seems favorable for traders to enter a short position.

Trade Suggestion:

• Entry Point: 78.13
• Take Profit: 77.08
• Stop Loss: 78.91

SILVER: Technical Analysis Indicates a Buy Sentiment

Exponential Moving Average

• EMA 5: The 5-day EMA stands at 24.83, indicating a Buy signal.
• EMA 20: The 20-day EMA is at 24.23, signaling a Buy sentiment.
• EMA 50: The 50-day EMA currently sits at 23.67, suggesting a Buy indication.

Simple Moving Average

• SMA 5: The 5-day SMA shows a value of 24.83, reinforcing the Buy recommendation.
• SMA 20: With a value of 24.06, the 20-day SMA also supports a Buy sentiment.
• SMA 50: The 50-day SMA registers at 23.31, affirming a Buy indication.

RSI (Relative Strength Index)

The RSI, calculated over a 14-day period, stands at 76.35, signifying a Buy signal.

Stochastic Oscillator

The %K value of the Stochastic Oscillator suggests a positive stance.

Resistance And Support Levels

• Resistance: The resistance level is observed at 24.95.
• Support: The support level is identified at 24.65.

Summary And Trade Suggestions

In summary, the technical analysis of SILVER points towards a Buy sentiment. Considering the indicators, moving averages, and oscillators, it seems favorable for traders to enter a long position.

Trade Suggestion:

• Entry Point: 25.00
• Take Profit: 25.36
• Stop Loss: 24.72

LITECOIN: Technical Analysis Indicates a Sell Sentiment

Exponential Moving Average

• EMA 5: The 5-day EMA stands at 92.52, indicating a Sell signal.
• EMA 20: The 20-day EMA is at 94.99, signaling a Sell sentiment.
• EMA 50: The 50-day EMA currently sits at 95.78, suggesting a Sell indication.

Simple Moving Average

• SMA 5: The 5-day SMA shows a value of 92.43, reinforcing the Sell recommendation.
• SMA 20: With a value of 95.87, the 20-day SMA also supports a Sell sentiment.
• SMA 50: The 50-day SMA registers at 99.11, affirming a Sell indication.

RSI (Relative Strength Index)

The RSI, calculated over a 14-day period, stands at 34.96, signifying a Sell signal.

Stochastic Oscillator

The %K value of the Stochastic Oscillator suggests a negative stance.

Resistance And Support Levels

• Resistance: The resistance level is observed at 93.55.
• Support: The support level is identified at 91.18.

Summary And Trade Suggestions

In summary, the technical analysis of LITECOIN points towards a Sell sentiment. Considering the indicators, moving averages, and oscillators, it seems favorable for traders to enter a short position.

Trade Suggestion:

• Entry Point: 89.71
• Take Profit: 85.54
• Stop Loss: 93.10

Conclusion

In conclusion, Wall Street closed higher, setting the stage for an anticipated increase in earnings during the ongoing earnings season. The market is closely monitoring the performance of key companies, such as Tesla and Netflix, as well as prominent banking institutions like Bank of America, Morgan Stanley, and Goldman Sachs. During the Asia session, the Reserve Bank of Australia’s hawkish tone in its monetary policy meeting minutes emphasized its preparedness to address inflationary concerns. Moving forward, events during the Europe and U.S. sessions, such as Canadian inflation data, U.S. retail sales, and industrial output statistics, may introduce market volatility.

Frequently Asked Questions (FAQs)

1. What is the earnings season?

The earnings season refers to a period when publicly traded companies release their financial reports, including earnings and revenues, for a specific quarter. It is a crucial time for investors and analysts to evaluate a company’s performance and make informed investment decisions.

2. Which companies are scheduled to report earnings this week?

Some notable companies scheduled to report earnings this week include Tesla (TSLA.O), Netflix (NFLX.O), Bank of America (BAC.N), Morgan Stanley (MS.N), and Goldman Sachs (GS.N).

3. How are earnings expectations for the quarter?

According to Refinitiv data, earnings for the quarter are anticipated to decrease by 8.1%, which is slightly higher than the initial 5.7% reduction predicted earlier this month.

4. What are the implications of the Reserve Bank of Australia’s monetary policy meeting minutes?

The recently disclosed minutes of the Reserve Bank of Australia’s meeting suggest a hawkish tone, indicating their readiness to address inflation concerns. Despite a decline in domestic inflation, the labor market remains tight, and service inflation remains strong.

5. What key events can impact the Europe and U.S. sessions?

While the Europe session may experience limited economic data releases, significant events that could affect the markets include Canadian inflation data, U.S. retail sales, and industrial output statistics.