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Positive US data overnight

Four markets in focus today: US 500, AUD/USD, Spot Gold and CSR.

US 500

Given the positive data overnight we are back with US markets testing the all-time highs. The new quarterly US earnings season starts next week and expectations have been lowered, with analysts cutting forecasts.

AUD/USD

Key resistance kicks in at 0.9339, which is the 61.8% retracement of the October to January rally, but it seems the gradual creep up continues and momentum would suggest buying dips. At 11:30 AEDT we get February building approvals and the market expects a 2% decline on the month, with the pace of gains running at an annualised pace of 27.9%. A good number here could help push the pair higher, although strong upside looks harder to achieve here.

Spot Gold

Spot Gold has lost 8% since peaking on March 17 and trend suggests rallies should be selling opportunities. There are technical signs that gold is oversold and buyers seem to be steeping in at the January 26 high of $1279, although the big support kicks in at $1262.70 (the 61.8% retracement of the December to March rally). Today’s US ADP private payrolls report could be a catalyst for price if it misses the 195,000 jobs expected to be created.

CSR

I did a scan of the market for names that are trading two standard deviations from their 20-day moving average, are at a thirty day high, the MACD above the signal line and price above the five-day moving average. I found there are three stocks which technically look very strong right now – CSR, QUB and ILU.

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