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On May 7th, AMD shares surged to a record high as a strong outlook boosted investor confidence in continued demand for artificial intelligence infrastructure, driving a general rise in global semiconductor stocks. Analysts and investors believe AMD is a leader challenging Nvidias dominance in the AI chip field, and that the company is also benefiting from its focus on the CPU business. CPUs have become increasingly important as companies move towards agent-based AI—systems capable of performing autonomous functions—which expands demand beyond GPUs used to train large models. "Nvidia held a monopoly in the AI chip market for two years, but other companies are now catching up. Meanwhile, the expanding market size leaves room for future growth," said Michael ORourke, chief market strategist at Jones Trading. Matt Blitzman, senior equity analyst at Hargravesson Lansdowne, said, "AMDs story is no longer just about competing with Nvidia on GPUs…its increasingly moving towards a broader computing landscape, as both CPUs and GPUs will play their respective roles as demand for AI workloads increases."On May 7th, the China Trustee Association issued an initiative entitled "Initiative on Optimizing Trust Services and Promoting the Healthy and Sustainable Development of the Trust Industry." The initiative emphasizes adhering to the principle of "quality and price matching" and resisting "involutionary" competition. It calls for scientifically assessing core elements such as business service costs, risk premiums, and reasonable profits to establish a pricing mechanism that matches actual business needs. The initiative resolutely opposes competing for projects at prices below cost, preventing issues such as declining service quality and weakened risk management due to low-price competition, and upholding the fundamental principle of "quality and price matching" in business operations.According to the official measurement of the China Earthquake Networks Center, a magnitude 3.4 earthquake occurred in Kuqa City, Aksu Prefecture, Xinjiang (41.20 degrees north latitude, 83.75 degrees east longitude) at 14:46 on May 7, with a focal depth of 18 kilometers.Shell CFO: We are seeing rising crude oil and refined product prices in Asia to attract U.S. shipments from Europe to Asia.Switzerlands seasonally adjusted unemployment rate for April will be released in ten minutes.

As investors wait for US/Canada employment data, the USD/CAD trading range is limited to 40 pips

Daniel Rogers

Apr 06, 2023 13:36

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The USD/CAD pair retraced below 1.3450 in the early Asian session as the US Dollar Index (DXY) lost upside momentum after reaching the key resistance level of 102.00. As investors anticipate the release of the United States/Canada Employment data, the Canadian dollar is expected to deliver a dazzling performance.

 

As a consequence of a decline in Job Openings and sluggish additions of new positions, as measured by Automatic Data Processing, firms have slackened recruitment efforts, thereby alleviating the tight US labor market. (ADP). This has led to expectations that the Federal Reserve (Fed) will keep interest rates unchanged at its May meeting.

 

In the interim, S&P500 futures have resumed their downward trend, indicating a cautious market sentiment.

 

Employment data will influence the Canadian Dollar. The consensus estimate for Net Change in Employment is 12K, which is a decrease from the previous release of 21.8K. The estimated unemployment rate is 5.1%, up from 5.0% previously.

 

The USD/CAD exchange rate is exhibiting an Inverted Flag pattern on an hourly time frame. The Inverted Flag is a trend-following pattern that consists of a protracted consolidation followed by a decline. Participants prefer to enter an auction after a bearish bias has been established, and current vendors increase their position size during the consolidation phase of a chart pattern.

 

The Canadian dollar was unable to maintain a position above the 50-period Exponential Moving Average (EMA) at 1.3458, indicating that further declines are imminent.

 

Meanwhile, the Relative Strength Index (RSI) (14) has an upper limit of 60.00. A violation of the unfavorable 20.00-40.00 range will trigger downward momentum.

 

A break below the low of April 04, 1.3406, would expose the asset to a fresh six-week low around 1.3350, the low of February 6 followed by round-number support at 1.3300.

 

In an alternative scenario, a move above the psychological resistance of 1.3500 would lend momentum to US Dollar supporters, propelling the asset toward the 31- and 29-March highs of 1.3559 and 1.3619, respectively.


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