Moody’s downgrades China’s credit rating

U.S. based company, Moody’s Investors Service, also known as Moody’s, the leading provider of credit ratings, downgraded China’s credit ratings from one notch A3 to an Aa1 on Tuesday as it believes that China’s economy will fall in the near future while debt continues to rise. Moody’s also highlighted the fact that economic growth in China is slowing down. As a result, China’s Shanghai index lost 0.66 percent earlier today. Meanwhile, Australian stocks were seen higher.

source: Reuters, Investing.com

Several important events are taking place on Wednesday, firstly, the European Central Bank’s President, Mario Draghi is set to deliver a speech at 12:45 GMT and this could influence the trend of the euro. Later during the day, U.S. will report its New Home Sales for April, while Canada will announce its Interest Rate Decision today, both due at 14:00 GMT. In this regard, it is worth keeping an eye on the U.S. dollar and the Canadian dollar.

The International Energy Agency will communicate the U.S. Crude Oil Inventories at 14:30 GMT today. Energy ministers from the Organization of the Petroleum Exporting Countries (OPEC), the oil exporters’ group will be soon meeting at their headquarters in Vienna in an attempt to take a decision on whether to extend output cuts or not. Otherwise, the U.S. Federal Open Market Committee (FOMC) Meeting Minutes will be out at 18:00 GMT on Wednesday.

Technical Analysis

AUD/USD

AUD/USD

Yesterday, the AUD/USD pair recorded a set of pullbacks as from 17:00 UTC to close this bearish trend by 20:00 UTC at the 0.74752 level. It started off today’s session bearish at $0.74704 at 00:00 UTC, and this downtrend went on for the next few hours till 04:00 UTC. According to the Ichimoku Cloud indicator, the asset is expected to fall through 14:00 UTC today and may fluctuate through the rest of the day.

EUR/USD

EUR/USD

The EUR/USD pair was seen recording much fluctuation in yesterday morning’s trading hours till 09:00 UTC. On Wednesday, the currency pair started losing momentum as from 01:00 UTC at the 1.11866 level, followed by pullbacks. It is however seen consolidating, thus trading within similar ranges. By analysing its trends, the asset can be expected to fall further through the day. Consider using Limits Trading to trade this pair for today.

GBP/USD

GBP/USD

The currency pair initiated its session on a positive note today at open at 00:00 UTC at the 1.29557 level. It reached its highest level for its morning session at $1.29740 by 04:00 UTC on Wednesday. The Ichimoku Cloud indicator depicts a change in trend around 08:00 UTC and it is thus recommended to watch out for this opportunity and trade within similar time zone on our trading platform.

Things to watch on the market

Tip 1

The S&P/ASX 200 and the Nikkei 225 edged up by 0.03 percent and 0.56 percent respectively, while the Shanghai index lost value on the market. Consider these index with the Classic Binary Options tool for today.

 

Tip 2

Consider trading pairs such as the EUR/USD, EUR/CAD, GBP/USD, and the USD/CAD. Investors can also consider indices such as the DAX, TSX 60 and the S&P 500.

 

Tip 3

Traders should take advantage of oil movements taking place with the OPEC output cuts and consider trading the BRENT CRUDE OIL-APR16 and the Light Sweet Crude. The Canadian dollar and the Russian currency could be affected also.