EM CEEMEA CREDIT: KZOKZ: Considers Yuan Denominated bonds

• RES 4: 0.5682 High Nov 12 ‘24  
• RES 3: 0.6550 61.8% retracement of the Sep 30 ‘24 - Apr 9 bear leg
• RES 2: 0.6528 High Nov 29 ‘24
• RES 1: 0.6494 High May 05
• PRICE: 0.6456 @ 07:58 BST May 6
• SUP 1: 0.6366/6327 20- and 50-day EMA values   
• SUP 2: 0.6275 Low Apr 14    
• SUP 3: 0.6181 Low Apr 11
• SUP 4: 0.6116 Low Apr 10  

AUDUSD traded higher Monday and a bullish theme remains intact. The recent breach of 0.6450, the Apr 29 high, marks the end of the recent pause in the bull cycle and confirms a resumption of the uptrend. Note that moving average studies are in a bull-mode position, highlighting an uptrend. Sights are on 0.6528, the Nov 29 ‘24 high. Initial key support to monitor is 0.6327, the 50-day EMA.

Estoxx: +0.20%, Dax: +0.08%, CAC: +0.06%.

The Swedish April services PMI fell further into contractionary territory to 48.4 (vs 49.3 prior), the lowest since September 2023. The three analyst forecasts submitted to BBG had a range of 49.0-50.5.  The release appears broadly consistent with the April Economic Tendency Indicator services sub-component, and underscores the downside risks to economic activity stemming from US tariff-related uncertainty. The Riksbank are unanimously expected to hold rates at 2.25% on Thursday, but growth risks leave scope for a dovish guidance tilt.

• Expected employment fell to a 6-month low of 45.3 in April, from 47.3 prior.
• Meanwhile, the supplier input price index was 56.2 (vs 58.9 prior).
• Production fell to 46.4 (vs 47.9 prior), while new orders were 47.6 (vs 48.8 prior).
• Supplier deliveries rose to 55.4 (vs 53.7 prior), while order backlogs ticked up to 50.0 (vs 49.7 prior).
• Expected production ahead remained expansionary at 58.1 (vs 59.9 prior).