AUD is trading low ahead of the Budget release

Aussie seems to trading low against dollar, ahead of Australian budget release. It seems that the Aussie ignores the China inflation data.

China CPI recovered but stayed below forecasts, PPI remains strong. China’s Consumer Price Index (CPI) has eased below -0.2% forecast to -0.3% MoM but stayed above -0.5% prior. The yearly CPI was with +0.9% numbers versus +1.0% market consensus and +0.4% previous readouts. It should be noted that the Producer Price Index (PPI) crosses 4.4% prior and 6.6% market expectations with 6.8%.

The Australian budget is about to be announced by 09:30 GMT in the Australian Parliament. Ahead of the release, News reported that “Analysts expect the budget deficit for the year to end June 2021 to come in around A$150 billion ($117.5 billion), still a record but down sharply from an October forecast of A$213.7 billion. The 2021/22 shortfall may shrink further to around A$80 billion.”

Elsewhere, Australia’s Minister for Trade, Tourism and Investment Dan Tehan has stated that the country might keep its borders shut to travellers until late 2022. He expressed that the current surge of COVID-19 cases in the Indian subcontinent hints that Australia has been right in its decision to blanket ban visitors. He also expressed that such a ban is critical to keep Australia COVID-free.

As per the update, there is no surety as to when Australians borders would reopen. Dan Tehan told that “the best guess would be in the middle to the second half of next year”. The nation entered into an air travel bubble agreement with New Zealand previously, which has been paused for cities that are again seeing a surge in the number of COVID-19 cases.

On the other hand, The US Food and Drug Administration has declared the Pfizer vaccine safe for children as young as 12.The American-developed jab is the first vaccine available to children under 16.

It also should be noted that the US Republicans have currently eased their rejection of President Joe Biden’s heavy relief packages and even Australia is ignoring the record deficit to help the Aussie people overcome the pandemic. Recently As per a news, “Australia’s conservative government will ditch decades of deficit warnings to embrace billions in new spending in its annual budget on Tuesday, saying a record shortfall is necessary to “secure” the economic recovery from the COVID-19 pandemic.”

AUD/USD 4 Hour Chart:

Support: 0.7808 (S1), 0.7785 (S2), 0.7744 (S3).

Resistance: 0.7872 (R1), 0.7913 (R2), 0.7936 (R3).

All the catalysts are pressurizing Aussie ahead of Australian budget release, Whether Australia budget changes the trend is yet to be seen. In the meantime, we expect a bearish trend for AUD/USD.

All you need to know about Doge coin

Dogecoin, a digital currency created as a joke and now it has been the world’s 5th ranking cryptocurrency. In recent day it’s price is up by more than 1,600 percent so far this year.

Everyone has been talking about What is doge Coin?. In this article we are going to know about the new Crypto world “DOGE”.

What is Dogecoin?

Dogecoin started as a joke that its creator Jackson Palmer made in 2013. Programmer Billy Markus then worked with Palmer to bring the coin to life in less than two weeks. Similar to bitcoin, Dogecoin is a digital coin that is mainly used for e-transactions and its meme has a picture of the shiba inu(dog breed)on it.

A common use for Dogecoin is to tip online content creators and social media posters in recognition for their work. In this way, DOGE acts like a monetary way to “like” someone’s post.

DOGE is based on Luckycoin (LKY), which is based on Litecoin (LTC)‘s blockchain ledger. By virtue of its lovable mascot (the Shiba Inu “doge” meme), Dogecoin was designed to be a more approachable cryptocurrency than Bitcoin. Based on the “Doge” meme and started as a “fun” alternative to Bitcoin, Dogecoin’s value has risen phenomenally now valued at $51+ billion.

The Ride of Doge

Dogecoin seems to be riding the wave.

  • Dogecoin found further acceptance when cryptocurrency ATM provider CoinFlip made the digital currency available for purchase at 1,800 ATMs across 46 states in the US.
  • Another reason behind its current success is said to be a Reddit group called SatoshiStreetBets, where members built up an enthusiasm for the cryptocurrency in a manner similar that led to the rise of GameStop earlier in the year 2021. The group’s name refers to Satoshi Nakamoto, the screen name of the person or group of persons behind Bitcoin.

 

Over the last few years, Dogecoin has really become a kind of cryptocurrency fueled by online communities and support from internet personalities.

Elon Musk behind Dogecoin ride

The cryptocurrency, which was conceived as a joke in 2013, rose because of the tweets from Elon Musk.

Musk had said during a Clubhouse session that “Dogecoin was made as a joke to make fun of cryptocurrencies, but fate loves irony.” He added, “The most ironic outcome would be that Dogecoin becomes the currency of Earth in the future.”

Billionaire Musk has been a staunch supporter of the meme cryptocurrency and frequently tweets about it. Recently He tweeted that he planned to take Doge to “the moon” on a SpaceX rocket in 2022. The “DOGE-1 Mission to the Moon” is in collaboration with a Canadian company, Geometric Energy Corporation.

How can I buy it?

Just like any other cryptocurrencies, Dogecoin can be purchased through any cryptocurrency wallet or online trading platform. There is also a dedicated Dogecoin wallet that can be accessed through a smartphone or a desktop. You can trade this currency in any online CFD trading Platforms providing dogecoin.

How To Manage Your Dogecoin

To manage your Dogecoin or any other cryptocurrency, you must learn how to navigate exchanges and keep your computer secure.

  • You will need to take extra precautions to protect yourself against phishing scams, viruses, and other risks. You will also need to keep very careful track of your wallet’s access codes. If you misplace those then your DOGE coin will be trapped in a wallet you can no longer access.
  • On top of this, there are risks that you have no control over. Whenever you use an exchange you are relying on it to protect your DOGE. The problem is that they sometimes fail to do this properly.

 

Are Exchange Wallets Safe To Store Dogecoin?

Keep in mind that cryptocurrency exchanges are not automatically safe and you will need to be serious about your security.

  • Always enable two-factor authentication.
  • Avoid keeping all of your coins in a single wallet.
  • Don’t leave your coins in an exchange wallet unless you are planning to exchange them.
  • If you don’t have the keys to your wallet then you don’t own the coins inside it.
  • The best way to secure your Dogecoin may be in a hardware wallet or by putting them in cold storage.

 

Reasons to Trade Dogecoin

Here are some reasons that traders choose to trade Dogecoin:

  • Inflationary supply dynamic
  • An engaged user base
  • Significant price fluctuation offers day trading opportunities.
  • Inflationary supply dynamic – Unlike Bitcoin, Litecoin, and many other cryptocurrencies, Dogecoin is an inflationary currency. It means that there is no maximum limit to the number of coins in circulation.
    It may seem counterintuitive to call inflation a good thing since it devalues individual Dogecoins. However, its inflationary nature is a feature that may ensure Dogecoin’s survival.
  • An engaged user base – Many believe Dogecoin has one of the best crypto communities out there: approachable, friendly, and helpful. Dogecoin is a transactional currency, rather than a speculative asset or mere store of value. From a trading point of view, even though Dogecoin might not have cutting-edge technology behind it, it is being treated as a proper currency by many users. It has utility.
  • Significant price fluctuation offers day trading opportunities – This is excellent for liquidity and makes it easy to obtain coins.

 

Reasons Not to Trade Dogecoin

While there are upsides to this unique crypto, there are always risks to consider when trading any cryptocurrency:

1. Update lag

Dogecoin has not seen a major update since 2015. While the security behind the coin is still strong, a lack of updates could well leave the cryptocurrency behind as newer coins bring new features to the table.

2. Uncapped maximum supply levels.

Being an inflationary coin encourages users to spend Dogecoin, rather than see the value of their coins fall over time. But this limits its utility as a long term store of value, versus something like Bitcoin or even traditional assets, like gold.

Final Thoughts

Bitcoin and Dogecoin look almost exactly the same. Their code differs in only a few parameters. But their economic functions are almost entirely opposite.

Bitcoin is a kind of “digital gold” adopted as a secure hedge against political and economic uncertainty. Dogecoin, on the other hand, is a meme people add to their digital wallet because they think it’s funny. But in an open digital economy, memes move markets.

Concerns on US jobs pressurizes greenback

Federal Reserve Bank of Minneapolis President’s comments on the US employment report weigh on the greenback. Federal Reserve Bank of Minneapolis President Neel Kashkari said that The U.S. labor market remains in a “deep hole” and it needs aggressive support to speed its healing from the Covid-19 pandemic.

Kashkari said “We are still somewhere between 8 and 10 million jobs below where we were before the pandemic.”   He said there was some truth to the idea that enhanced jobless benefits create a disincentive to returning to work.

The U.S. job growth unexpectedly softened in April from the prior month, with payrolls increasing just 266,000. Economists in a survey had projected a hiring surge of 1 million people in April. The unemployment rate edged up to 6.1%.

Fed Chair Jerome Powell said in a press conference that progress would take some time. Officials don’t expect to begin raising the central bank’s benchmark interest rate from its current near-zero level before 2024, according to the median estimate of projections they published in March.

On the other hand. Canada’s plan of reopening seems to favor the CAD. Canada with a daily record of 13,651 COVID-19 vaccines administered on Saturday, Saskatchewan officials announced a target date of May 30 for Step 1 of the re-open plan.

The province has a 3 step reopen plan which will be unveiled on Tuesday. With more than 70 per cent of residents age 40 and older having received their first COVID-19 dose, part of the threshold for Step 1 has been met. The province’s re-open plan largely relies on vaccination levels being met.

Elsewhere, No new deaths due to Covid -19 were reported on Sunday for the second day in-a-row.

USD/CAD 4 Hour Chart:

Support: 1.2100 (S1), 1.2075 (S2), 1.2028 (S3).

Resistance: 1.2171 (R1), 1.2218 (R2), 1.2243 (R3).

In the current prevailing environment where reopening in Canada is being planned and the concerns on the US jobs, CAD seems to be stronger than USD. We expect a bearish trend for USD/CAD.

GBP/USD Weekly Forecast (10th May 2021 – 14th May 2021)

Fundamental view:

Pound trades stronger against the greenback in the previous week.  The Bank of England monetary policy tweak has helped the pound to push up and the concerns about the weakness in the US economy have kept the dollar from rising up. BOE upgraded its economic forecasts as Britain’s successful vaccination campaign boosts the economy. Infections continue falling, and the country is on course to its full reopening due on June 21. 

Britain BoE Mortgage Approvals & BoE M4 Money Supply monthly report on 4th May and US Initial Jobless Claims 4-Week Average on 6th May created downtrend for the pair whereas US ISM Manufacturing PMI on 3rd May and US Trade Balance on 4th May created uptrend for the pair.

The major economic events deciding the movement of the pair in the next week are BoE Governor Bailey Speech, US JOLTS Job Openings at May 11, UK Manufacturing Production monthly report, UK GDP quarterly report, US Core CPI monthly report, US EIA Crude Oil Stocks Change at May 12, US Initial Jobless Claims at May 13, US Retail Sales monthly report and Fed Industrial Production yearly report at May 14.

GBP/USD Weekly outlook:

Technical View:

Last week’s high was 0.21% higher than the previous week. Maintaining high at 1.4006 and low at 1.3800 showed a movement of 206 pips.

In the upcoming week we expect GBP/USD to show a bullish trend.  The currency pair is trading above the 200 Simple Moving Average and the MACD trades to the upside. A solid breakout above 1.4062 may open a clean path towards 1.4137 and may take a way up to 1.4268. Should 1.3856 prove to be unreliable support, the GBPUSD may sink downwards 1.3725 and 1.3650 respectively. Chart formation of ascending triangle pattern in H4 chart favors prospects of a bullish trend. Engulfing pattern formation escalates the expectation for a bullish trend.

Preference
Buy: 1.3984 target at 1.4136 and stop loss at 1.3851

 

Alternate Scenario
Sell: 1.3851 target at 1.3651 and stop loss at 1.3984