The decisions taken in China reflected limited changes to its main targets as they were largely in line with expectations.

China estimates that its GDP for this year will grow around 5%, while the inflation target will be around 3%. The targeted deficit is 3% of GDP and the jobless rate should be 5.5%. According to Bloomberg, China aims to create over 12 million new urban jobs.

Overall those targets are optimistic and analysts argue they won’t be easy to achieve.

The top priorities remain tech innovation and upgrading certain industries, with some examples being hydrogen power, new materials, drug research and production, commercial aviation and more. As a market reaction Chinese stocks in Hong Kong dropped as investors remain sceptical of the government’s growth target.

This article was written by Gina Constantin at www.forexlive.com.

Yesterday,
the Nasdaq Composite retreated a bit after the strong rally following the miss
in the ISM
Manufacturing PMI last Friday. There might be some profit taking
going on as we finally made a new all-time high and we have lots of risk events
ahead with the US labour market data and Fed Chair Powell testifying to
Congress. The path of least resistance remains to the upside until we either
see growth deteriorating or the economic data makes the market to expect the
Fed to make a U-turn on rate cuts.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq
Composite extended the rally into a new all-time high last Friday. The price
started to retreat yesterday as the sellers stepped in with a defined risk
above the high to position for a drop into the key trendline
targeting a break below it. The buyers, on the other hand, will want to wait
for the price to reach the trendline to position for a rally into new highs
with a better risk to reward setup.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that
the price has been diverging with
the MACD for a
long time. This is generally a sign of weakening momentum often followed by
pullbacks or reversals. The pullbacks in this case resolved all into the
trendline, so we can expect the price to do the same in the next few days. We
can also notice that we might have formed a rising wedge, so it
will be important for the buyers to avoid a break below the bottom trendline because
it could trigger a selloff into the base of the wedge at 14477.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that we
have now a resistance turned
support around the 16130 level where we have also the 50% Fibonacci
retracement level and the red 21 moving average for confluence. The
buyers might want to split their position in half between the support and the
trendline as the price can bounce on either level before continuing higher. The
sellers, on the other hand, will want to see the price breaking below the
bottom trendline to invalidate the bullish setup and increase the bearish bets
into new lows.

Upcoming
Events

This week we have lots of important events on the agenda
with the release of the US labour market data and the Fed Chair Powell
testifying to Congress. We begin today with the US ISM Services PMI. Tomorrow,
we have the US ADP, the US Job Openings and the Fed Chair Powell speaking. On
Thursday, we get the latest US Jobless Claims figures, while on Friday we
conclude the week with the US NFP report.

This article was written by FL Contributors at www.forexlive.com.

Why gold prices are gleaming brighter lately 🌟

It seems the the crypto boyz are mooning crypto meme coins, the Nasdaq is making another all time high every month, Nvidia and other AI stocks are faking out the bears again, and rallying… again. So why the heck is gold rising, too?

In an intriguing twist of financial markets this past week, gold prices have not just inched but leaped forward, drawing attention from investors and traders worldwide. This movement is far from arbitrary; it’s rooted in a tapestry of factors that together weave a compelling narrative for gold’s current allure. Let’s break down the key drivers behind this golden rally:

1. Fed’s interest rate dance 💃: The whispers of potential rate cuts by the Federal Reserve have set the stage. With the U.S. economic indicators not performing their best dance moves, speculation is rife about a softer monetary policy stance. In this ballet of finance, gold shines when the interest rates dip, offering a spotlight performance as yields on traditional investments dim.

2. A safe haven in stormy weather 🌩️: Amid the geopolitical thunderstorms, from ongoing conflicts to broader uncertainties, gold stands as a steadfast shelter. Its reputation as a sanctuary asset is reinforced, attracting investors seeking calm within the storm.

3. Central banks‘ gold rush 🏦: A notable narrative is the robust buying spree by central banks, particularly in Asia. This strategic accumulation reflects a quest for financial security and diversification, bolstering gold’s demand and price.

4. India’s season of gold 💍: The narrative takes a cultural twist with India’s peak wedding season on the horizon. Gold, revered for its auspiciousness in celebrations and traditions, sees a spike in demand, particularly in jewelry, adding another layer of demand-induced price support.

5. Balancing crypto risky volatility with gold’s preceived stability ⚖️: In the digital realm, the crypto markets continue their wild ride, marked by volatility and regulatory crosshairs. This uncertainty casts gold in a pivotal role as a hedge, offering a counterbalance to the high-risk, high-reward nature of cryptocurrencies. Investors, navigating the tumultuous seas of digital assets, increasingly view gold as an anchor, tempering the speculative waves with its enduring value.

The golden path forward 🛤️

Follow ForexLive.com to help you navigate and understand the markets. Always invest and trade at your own risk. 🚀🌐💡

This article was written by Itai Levitan at www.forexlive.com.

Prior -0.8%.

Eurozone PPI m/m prints below expectations at -0.9% vs -0.1%.

Eurozone PPI y/y prints at -8.6% vs -8.1% expected, prior -10.6%.

The biggest drop was in the energy component which decreased by 2.9% for the euro area and by 2.5% for the EU as a whole.

More information here.

This article was written by Gina Constantin at www.forexlive.com.

Prior 54.3.

U.K. Final Services PMI prints below expectations at 53.8 vs 54.3.

UK Composite PMI Final prints at 53 lower than forecast 53.3, prior 53.3.

U.K. service providers saw an improvement in business activity in February fueled by growth in new orders and a slight rise in employment numbers.

While the index printed slightly below expectations at 53.8, it’s still higher than it was at any point during the second half of last year. The expansionary territory above 50.0 shows there has been a rebound in business activity after last autumn’s downturn.

The GBP/USD saw a modest reaction.

More information here.

This article was written by Gina Constantin at www.forexlive.com.