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The Schwab US Dividend Equity (SCHD) ETF has remained in a tight range this year as investors rotated from growth stocks to value ones as risks rose. The SCHD ETF was trading at $28 on Monday, a few points above the year-to-date low of $26.6. This article explains the top three reasons to buy this blue-chip dividend ETF.

SCHD ETF stock has strong technicals

The first reason to buy the SCHD ETF is that it has strong technicals that point to more upside in the coming months. 

The daily chart below shows that the fund has formed two trendlines. Its lower line connects the lowest swings since April 2024. It has always bounced back whenever it dropped to that support level. 

The upper side connects the highest swing since May 2022. When these two lines are connected, they point to a rising broadening wedge, also known as a megaphone pattern. 

This pattern often leads to a strong bullish breakout over time. In this case, a bullish breakout to its all-time high of $29.18, would imply a 4.50% above the current level.

The SCHD ETF has also remained above the 50-day and 100-day Exponential Moving Averages (EMA). That is a sign that bulls remain in control for now and that its bullish trend will continue to accelerate. A drop below the support at $27 will invalidate the bullish view.

SCHD ETF stock by TradingView

Rotation from growth to value

The other main reason to buy the SCHD ETF is that there will be a rotation from growth to value this year, potentially because of the hefty tech valuations. SCHD has a cheap price-to-earnings ratio of 17, much lower than the S&P 500 index average estimate of 21. 

The fund is also much cheaper than the Invesco QQQ ETF average of 32. Therefore, while the tech-heavy Nasdaq 100 index will continue doing well over time, there is a likelihood that investors will move to the SCHD as they hunt for bargains. 

A likely reason for this is that there are fears that the artificial intelligence (AI) bubble is about to burst. This explains why most AI stocks, including NVIDIA have plunged in the past few months. In a note to Bloomberg, a top analyst at Boston Partners said:

“The questions about AI are coming at a time when there’s increased uncertainty overall, and at a time when they were priced for perfection, or close to it. That makes them an extremely obvious place for investors who are broadly nervous to take profits.”

Read more: SCHD ETF: brace for big changes on this blue-chip fund next week

Less exposure to tariffs

The other main reason why the SCHD ETF makes sense is that companies in the fund are mostly in the defensive industries. Financials account for 18% of all the companies in the SCHD ETF. The others are in the healthcare, consumer staples, industrials, and energy.

Most of these firms will not be affected by tariffs. For example, ConocoPhilips, the biggest SCHD stock will keep doing well as demand for energy will continue rising over time. The same is true with Chevron, the second-biggest company in the fund. 

Verizon, the third-biggest firm in the SCHD ETF will also not be affected since American customers will continue buying their mobile and cable. Other top companies in the fund are Coca-Cola, Bristol-Myers Squibb, Altria, AbbVie, PepsiCo, Amgen, and Merck & Co. Therefore, these stocks will likely continue thriving even when tariffs keep rising.

Additionally, the SCHD ETF has a long track record of dividend growth. Its 10-year compounded annual growth rate (CAGR) is 11.30%, higher than the median estimate of 5.93%.

The post Top 3 reasons to buy the SCHD ETF in April appeared first on Invezz

The venture capital (VC) industry has started the year well, with OpenAI breaking a record this week when it raised $40 billion on Monday. Other companies like Elon Musk’s xAI and Anthropic have continued to do well. This article ranks the biggest VC-funded companies in 2025.

Biggest US VC-funded companies in 2025

SpaceX 

Elon Musk’s SpaceX is the biggest VC-funded company in the world with an estimated valuation of over $423 billion after raising over $11.2 billion in funding. Some of iits investors are Fidelity Investments, Founders Fund, Google, and Andreessen Horowitz.

SpaceX has become the biggest provider of satellite internet in the globally. It has also become a giant government contractor that has secured goods worth billions of dollars in the past few years. 

Its main advantage is its first-mover advantage, especially in the satellite internet industry. While other companies like Eutelsat are aiming to gain market share in this industry, the reality is that SpaceX is much further ahead. The same is true in its launch business, where it is a respected company in terms of costs.

OpenAI 

OpenAI, the parent company of ChatGPT, is the second-biggest VC-funded company in the in United States. It broke a record on Monday when it raised $40 billion from investors like Softbank. The new fundraising brought its valuation over $300 million, in line with ByteDance, the parent company of TikTok. 

OpenAI will receive $10 billion of this funding instantly, and the rest in the 12 months. The remainder is contingent on the company changing its business model from a non-profit to a profit-based firm.

Stripe 

Stripe is another top VC-funded company in the USA. It has raised over $8.4 billion, and its estimated valuation is about $91 billion. 

Stripe is a major player in the payment service, where it offers solutions to companies like OpenAI, Amazon, Anthropic, and Airbnb. It is a major competitor to other companies like PayPal, Adyen, GoCardless, and Square. 

Stripe’s real valuation will become known when it files for an initial public offering, a move that is expected to happen in the next few years. 

Databricks

Databricks is a top VC-funded company that has been in the business since 2013. The company offers a data warehousing solution used by companies like Santander, Siemens, Shell, Toyota, JetBlue, and Warner. Bros. Discovery.

Databricks has raised over $14.4 billion and is now valued at over $72 billion. Its top investors are VC firms like Thrive Capital, a16z, T. Rowe Price, Morgan Stanley, and Franklin Templeton. 

Anthropic

Anthropic is a top AI company valued at over $65 billion after raising over $11.5 billion. It has received most of these funds from Amazon, which provides it with its data center infrastructure. 

Anthropic has also raised funds from Google, Lightspeed Venture Partners, and Menlo Ventures. The company has built Claude, a ChatGPT rival it hopes will be a better competitor to ChatGPT and other models. 

xAI

Elon Musk’s xAI has become one of the fastest-growing companies globally. Established in 2023, it has raised over $12 billion, giving it a valuation of over $50 billion. xAI has even used its financial might to acquire X, formerly known as Twitter, a deal that has created a company valued at $133 billion. As I wrote last week, I believe that xAI’s Grok, is the biggest threat to Google because of its better answers.

Other top VC-funded companies in the US

There are many other top VC-funded companies in the United States, including bug names like Figure A, Anduril Industries, Figma, Fanatics, Epic Games, Rippling, and Klarna.

The post The biggest US VC-funded companies of 2025: titans of innovation appeared first on Invezz

Celsius Holdings Inc (NASDAQ: CELH) rallied as much as 10% on Monday after a Truist analyst said the company’s focus on women as a target market could unlock significant upside in its share price.

In a research note, the investment firm upgraded CELH this morning to “buy”.

Its analyst Bill Chappell upwardly revised his price target on Celsius stock today to $45 that indicates potential upside of another 25% from current levels, which is exciting given it has already more than doubled since mid-February.

Chappell is bullish on CELH’s Alani acquisition

Truist continues to see significant further upside in Celsius shares particularly because the Nasdaq listed firm announced plans of acquiring Alani Nu brand for $1.65 billion last month.

Alani had been cutting into Celsius sales that have declined about 6% in recent months.

But that overhang will effectively be removed from CELH once it completes its cash and stock agreement with Alani, its analyst Bill Chappell told investors in a note today.

Together, Celsius and Alani currently own about 16% of the US energy drinks space.

However, their combined share sits at a much higher, close to 50%, in the women segment of that market.  

Note that Celsius stock does not currently pay a dividend, though.

Celsius to expand its footprint in women segment

Chappell expects the Alani acquisition to help Celsius dominate the women segment of the US energy drinks market.

This could prove lucrative for CELH as women are increasingly accounting for a bigger chunk of that category’s sales.

At writing, they drive less than 30% of the energy drink sales globally.

However, the Truist analyst is convinced that women will generate a well over 100% growth in that market in the future.

Meanwhile, rivals like Red Bull and Monster Beverage “have been built to focus on male consumers”, leaving this whole, fast-growing segment entirely for Celsius to own, Chappell added.

Should you buy Celsius stock today?

Celsius stock is now trading at a year-to-date high but Truist continues to recommend loading up on it for the strength of the company’s financials as well.

In February, the energy drinks giant reported 14 cents a share of earnings on a record revenue of about $332 million for its fiscal Q4.

Analysts, in comparison, were at 11 cents per share and $326 million, respectively.

At the time, Jarrod Langhans, CELH’s chief of finance told investors:

We’re pleased that our strategic initiatives are driving long-term share gains and strong retail sales growth.

We believe our capital allocation strategy is fully aligned with our vision to be a high-growth leader and deliver the greatest value to our consumers and shareholders.

The rest of the Wall Street also recommends buying Celsius stock with the mean target of $40 indicating about a 10% upside from here.

The post Celsius bets on women consumers—will its stock soar? appeared first on Invezz

Shell plc has successfully finalised the sale of its Singapore refinery and associated refining assets to a joint venture formed by Chandra Asri and Glencore, according to a Reuters report

This transaction marks a significant shift in ownership for the refinery and its assets.

Acquisition and transition of refinery ownership

In addition to the announcement by Shell, trade sources have revealed that the new owners of the refinery have already commenced operations, actively purchasing feedstock required for refining processes. 

This indicates a seamless transition of ownership and a commitment to maintaining the refinery’s operations under the new joint venture.

In 2022, Shell, the multinational oil and gas company, finalised the sale of its Bukom and Jurong Island facility in Singapore to a joint venture. 

The facility, which had been operational since 1961, was a significant asset in Shell’s portfolio. 

The majority stakeholder in the joint venture that acquired the facility was Chandra Asri, an Indonesian-based petrochemicals company. 

This acquisition significantly bolstered Chandra Asri’s position in the Southeast Asian petrochemicals market, making it one of the region’s largest players. 

The deal marked a strategic move for both Shell and Chandra Asri, with Shell divesting from the asset and Chandra Asri expanding its operational footprint and market share.

The financial specifics of the agreement between Shell and Chandra Asri-Glencore joint venture, which was originally expected to be finalised by the end of 2024, have not been made public.

Shell has announced that its employees at the site will transition to the new venture, Aster Chemicals and Energy Pte Ltd. 

This move ensures continuity of operations and expertise at the site, under the new ownership.

Strategic moves by Chandra Asri

Following the recent acquisition and change in ownership, office-based employees have been relocated to a new office space. 

Chandra Asri, taking over the responsibility of Aster’s petrochemicals feedstock procurement, has proactively secured multiple open-spec naphtha purchases.

These purchases, intended for arrival in Singapore, are scheduled to commence in March. 

This strategic move by Chandra Asri highlights their commitment to ensuring a consistent and reliable supply of feedstock for their petrochemical operations. 

The company’s decision to purchase open-spec naphtha allows for flexibility in sourcing and potentially offers cost advantages. 

By securing these purchases in advance, Chandra Asri demonstrates foresight and effective planning in managing their supply chain.

The Shell Jurong Island chemicals site, a major player in the petrochemical industry, significantly bolstered its naphtha imports in 2023 and 2024. 

According to shiptracking data provided by Kpler, the facility imported approximately 1.5 million tons of naphtha annually during those years. 

This is a significant increase in the site’s feedstock requirements, potentially driven by expanded production capacities, new downstream projects, or shifts in the regional supply-demand dynamics for petrochemicals.

Glencore’s crude procurement

In the meantime, Glencore, the Swiss commodity trading and mining company, has been actively securing crude oil supplies. 

The company has made multiple purchases of crude oil scheduled to arrive in Singapore during May and June. 

Sources familiar with the transactions have revealed to Reuters that the oil originates from various regions, including Canada and Kazakhstan, indicating Glencore’s diversified sourcing strategy.

The post Shell offloads Singapore refinery to Chandra Asri-Glencore joint venture appeared first on Invezz

China’s manufacturing activity grew at its fastest pace in a year in March, reflecting the impact of Beijing’s stimulus measures on economic recovery.

However, escalating trade tensions with the US present challenges to sustained growth.

China’s manufacturing PMI rises

The official purchasing managers’ index (PMI) reached 50.5 in March, according to data from the National Bureau of Statistics.

This marks the highest level since March last year and aligns with economists’ expectations.

The index had moved above the 50-point threshold in February, rising to 50.2 from 49.1 in January, as production picked up after the Lunar New Year holiday.

The sub-index for production increased to 52.6, while new orders climbed to 51.8, indicating improvements in supply and demand.

However, the employment sub-index fell to 48.2, suggesting continued softness in the labour market.

Non-manufacturing activity, which includes services and construction, also showed improvement, with its PMI rising to 50.8, the highest in three months.

The employment sub-index for this sector declined to 45.8, reflecting labour market weakness across both services and construction.

The Caixin/S&P Global manufacturing PMI, a private-sector survey due on Tuesday, is projected to show a further increase in activity, rising to 51.1 from 50.8 in February.

China’s stimulus measures

Chinese policymakers have been ramping up monetary and fiscal stimulus to support a growth target of “around 5%” for the year while countering the impact of US tariffs.

Measures include an expanded consumer goods trade-in scheme to spur domestic demand and increased government debt issuance to address housing market and deflationary concerns.

China has raised its budget deficit target to around 4% of GDP for 2025, up from 3% last year, signaling a commitment to greater fiscal support.

The government has committed to additional fiscal stimulus, higher debt issuance, and further monetary easing while emphasizing domestic demand to mitigate the trade war’s impact.

In an effort to reassure foreign businesses amid US President Donald Trump’s tariff threats, Chinese President Xi Jinping met with multinational CEOs last week, urging them to safeguard global industry and supply chains.

Trump’s tariffs on China

Exports, which had been a bright spot for the economy, have slowed in the first two months of the year, growing at their weakest pace since April last year.

Analysts attribute this to exporters front-loading shipments ahead of anticipated tariffs.

President Trump has imposed an additional 20% tariff on Chinese goods over concerns related to illicit fentanyl trade, prompting Beijing to retaliate with tariffs of up to 15% on select US energy and agricultural products.

Further measures are expected, with Trump set to announce “reciprocal” tariffs on April 2, potentially increasing duties on Chinese imports.

He has also suggested he may reduce tariffs in exchange for Beijing’s support in facilitating the sale of TikTok in the US.

The post China’s manufacturing hits 1-year peak as economic stimulus measures kick in appeared first on Invezz

CoreWeave’s initial public offering indicates signs of a pickup in dealmaking, which could prove to be a meaningful tailwind for the likes of the Goldman Sachs Group (NYSE: GS) in 2025.

The AI cloud infrastructure company had to downsize its IPO due to macro headwinds to $40 per share.

However, it still raised $1.5 billion at a valuation of about $20 billion at a time when markets are grappling with fears of a recession ahead, which wasn’t a small feat at all.

So, shares of Goldman Sachs, down some 20% versus their year-to-date high, look attractive at writing if you’re convinced the momentum will continue in dealmaking this year.  

CoreWeave reinforced Goldman’s position in the IPO market

CoreWeave printed a high of nearly $42 in its Nasdaq debut on Friday, indicating continued interest in AI names.   

The relative success of its offering could prove a tailwind for Goldman Sachs as it may encourage other companies like Discord and Klarna to proceed with their IPO plans this year.  

And as more businesses decide in favor of going public, the bank could earn more in advisory fees and grow its topline as we proceed through the remainder of 2025.

Note that CoreWeave’s initial public offering also helped reinforce Goldman Sachs’ position as a go-to name for major tech deals.

IPO market is showing early signs of a pickup

Data from Renaissance Capital also signals a pickup in dealmaking.

According to the IPO-tracker, about 44 offerings have been completed in the first quarter, raising a total of $9.4 billion.

In the same quarter last year, a total of 30 IPOs raised some $7.8 billion.

“A strong start was cut off by a market correction near quarter end,” as per the Renaissance report.

Renaissance Capital’s data arrives only weeks before Goldman Sachs is scheduled to report earnings for its fiscal second quarter.

The consensus is for it to earn $12.74 a share versus $11.58 per share a year ago.

Apart from potential strength in dealmaking, GS shares look attractive at the current level also because they pay a dividend yield of about 2.21% at writing.

Goldman Sachs stock could climb to $680

Analysts at Wells Fargo are also bullish on Goldman Sachs.

Last week, the firm reiterated its “overweight” rating on the financial service giant.

Its $680 price target on GS indicates potential upside of about 25% from current levels.

While the White House has stirred significant uncertainty in the markets in recent months, Wells Fargo remains convinced that Goldman Sachs will significantly benefit once the government starts to deliver on its promise of deregulation.

Other notable experts who are keeping bullish on the GS share price amidst recent weakness include famed investor and Mad Money host Jim Cramer.

The post What CoreWeave IPO means for Goldman Sachs appeared first on Invezz

AI stocks have been hammered in recent weeks, part of which is related to the macro headwinds, but some of it, at least, is due to concerns of an AI slowdown ahead.

But recent data continues to dismiss such fears as inflated. In fact, if anything, the demand for compute has only gone up in 2025, according to a senior Bernstein analyst, Stacy Rasgon.

“The only ones that seem worried about it are the investors. The companies that are actually doing the spending, it seems like it’s full steam ahead,” he argued in a CNBC interview last week.  

DeepSeek is driving demand for compute

Part of the reason why investors are questioning if 2026 could still be a growth year for artificial intelligence is DeepSeek.

The Chinese startup rolled out an AI model in February that it claimed required significantly less computational resources to achieve results comparable to ChatGPT.

However, demand for compute has only gone up since DeepSeek’s launch, Rasgon added.

We’ve seen CAPEX numbers go up. We’ve head stories of GPU shortages as they’re starting to deploy this stuff.

It does actually look like it’s driving demand, not curtailing it.

Still, the iShares Future AI & Tech ETF is currently down nearly 25% versus mid-February.

Nvidia continues to see strong demand ahead

Nvidia chief executive Jensen Huang echoed a similar view at the annual GTC event this month.

In his keynote speech, the industry veteran said DeepSeek’s R1, while efficient, is a reasoning model that actually requires 100 times more computational power than non-reasoning AI models.

This was contrary to initial market assumptions that DeepSeek’s advancements would reduce overall compute demand.

“I’m of the belief that cost reduction, in general, is good – it drives demand. That’s been true in semiconductors over the course of five or six decades.” Rasgon told CNBC last week.

Bernstein’s view on Nvidia stock for 2025

Rasgon’s belief that concerns of an AI slowdown are, in fact, overblown keeps him bullish on the sector darling, Nvidia Corp (NASDAQ: NVDA).

His outperform rating on the artificial intelligence chips giant is coupled with a price target of $185, which indicates potential for a nearly 70% upside from current levels.

The Bernstein analyst agreed that semiconductor stocks tend not to do well during a recession, but added:

Some of the spending on AI, particularly related to productivity savings and cost reductions, and things like that may prove more resilient in a recession than discretionary spending.

Nvidia itself guided for continued momentum ahead in February.

For Q1, the AI chips behemoth expects $43 billion in revenue, which translates to about a 65% year-on-year increase. Analysts, in comparison, were at $41.78 billion only.

The post Has DeepSeek really lowered compute demand in 2025? appeared first on Invezz

Bitcoin has continued to consolidate in recent sessions even after GameStop announced plans to invest in the world’s largest cryptocurrency by market cap.

However, the news is still meaningful for the crypto world – it’s just the uncertainty coming out of the White House that’s disabling BTC price from celebrating it fully.

Once the macro environment stabilises, it’s believable that the digital asset will resume its upward trajectory, hopefully pulling the rest of the crypto market, including the up-and-coming meme tokens, like Bitcoin Pepe, up with it.

Why is GME news significant for Bitcoin Pepe?

GameStop’s choice to become an institutional investor of Bitcoin is a significant development since it could improve legitimacy and increase demand for crypto coins.

Since the BTC itself is still going for well over $80,000, a huge part of the retail community may find it beyond reach and choose to invest in the likes of Bitcoin Pepe instead, particularly since the meme coins have a history of offering explosive returns in early stages.

In fact, that narrative is already showing in Bitcoin Pepe’s ongoing presale, which has raised close to $5.8 million within weeks.

If you’re interested in learning more about Bitcoin Pepe and its native crypto coin, click here to visit the project’s website now.

The new SEC is committed to crypto regulation

Bitcoin Pepe may be an exciting investment for this year also because Paul Atkins, President Donald Trump’s nominee to head the US Securities and Exchange Commission, reiterated crypto regulation as a top priority last week.

Atkins pledged to build a “rational, coherent, and principled” framework for cryptocurrencies at his confirmation hearing before the Senate on March 27.

His remarks are significant since regulatory uncertainty has long been a headwind for digital assets.

Once the Trump administration delivers on its promise of improvement on that front, crypto coins, including the likes of Bitcoin Pepe, could rally in 2025.

Visit the website at this link to explore ways to invest in Bitcoin Pepe today.

Should you invest in Bitcoin Pepe today?

After the presale, devs have plans of listing Bitcoin Pepe on a notable crypto exchange that often drives interest and helps push the price of the token further up.

Additionally, the Federal Reserve remains committed to two rate cuts in 2025.

As interest rates lower, risk-on assets like cryptocurrencies, including Bitcoin Pepe, could appear more attractive for investors.

All in all, there are several tailwinds, some on the macro level and some Bitcoin Pepe-specific, that indicate potential for significant upside in the platform’s native meme coin.

You can dive deeper into Bitcoin Pepe before finalising your decision to invest in it on this link.   

The post Should you invest in Bitcoin Pepe as GME announces plans of buying BTC? appeared first on Invezz

China’s manufacturing activity grew at its fastest pace in a year in March, reflecting the impact of Beijing’s stimulus measures on economic recovery.

However, escalating trade tensions with the US present challenges to sustained growth.

China’s manufacturing PMI rises

The official purchasing managers’ index (PMI) reached 50.5 in March, according to data from the National Bureau of Statistics.

This marks the highest level since March last year and aligns with economists’ expectations.

The index had moved above the 50-point threshold in February, rising to 50.2 from 49.1 in January, as production picked up after the Lunar New Year holiday.

The sub-index for production increased to 52.6, while new orders climbed to 51.8, indicating improvements in supply and demand.

However, the employment sub-index fell to 48.2, suggesting continued softness in the labour market.

Non-manufacturing activity, which includes services and construction, also showed improvement, with its PMI rising to 50.8, the highest in three months.

The employment sub-index for this sector declined to 45.8, reflecting labour market weakness across both services and construction.

The Caixin/S&P Global manufacturing PMI, a private-sector survey due on Tuesday, is projected to show a further increase in activity, rising to 51.1 from 50.8 in February.

China’s stimulus measures

Chinese policymakers have been ramping up monetary and fiscal stimulus to support a growth target of “around 5%” for the year while countering the impact of US tariffs.

Measures include an expanded consumer goods trade-in scheme to spur domestic demand and increased government debt issuance to address housing market and deflationary concerns.

China has raised its budget deficit target to around 4% of GDP for 2025, up from 3% last year, signaling a commitment to greater fiscal support.

The government has committed to additional fiscal stimulus, higher debt issuance, and further monetary easing while emphasizing domestic demand to mitigate the trade war’s impact.

In an effort to reassure foreign businesses amid US President Donald Trump’s tariff threats, Chinese President Xi Jinping met with multinational CEOs last week, urging them to safeguard global industry and supply chains.

Trump’s tariffs on China

Exports, which had been a bright spot for the economy, have slowed in the first two months of the year, growing at their weakest pace since April last year.

Analysts attribute this to exporters front-loading shipments ahead of anticipated tariffs.

President Trump has imposed an additional 20% tariff on Chinese goods over concerns related to illicit fentanyl trade, prompting Beijing to retaliate with tariffs of up to 15% on select US energy and agricultural products.

Further measures are expected, with Trump set to announce “reciprocal” tariffs on April 2, potentially increasing duties on Chinese imports.

He has also suggested he may reduce tariffs in exchange for Beijing’s support in facilitating the sale of TikTok in the US.

The post China’s manufacturing hits 1-year peak as economic stimulus measures kick in appeared first on Invezz

The AUD/USD exchange rate has retreated in the past few days ahead of the upcoming Reserve Bank of Australia (RBA). It was trading at 0.6278, down by almost 10% from its highest point in 2024. It has also pulled back by almost 2% from its highest point this year.

RBA interest rate decision

The AUD/USD pair has remained on edge as the market waited for the upcoming RBA interest rate decision and Donald Trump’s Liberation Day tariffs.

The RBA has emerged as one of the most hawkish central banks in the developed world in this cycle. 

It resisted pressure to cut interest rates in 2024 even as the economic growth remained on edge and inflation dropped. 

The central bank delivered the first interest rate cut in its first meeting of the year, and officials remained hawkish. They signaled that they would wait and see before cutting rates again this year, leading to speculation that they would cut again in May.

Recent economic numbers have raised bets that the RBA may decide to cut rates this week. A preliminary report by the statistics agency showed that prices cooled in February. 

The headline consumer price index (CPI) was flat in February from January. It then dropped slightly to 2.4% from the previous 2.5%. 

The trimmed mean CPI rose by 2.7%, slowing from 2.8% in January. While these numbers are higher than the RBA’s target of 2.0%, they are moving in the right direction. They are also lower than in the US and other countries that are cutting interest rates.

Meanwhile, Australia’s unemployment rate ticked up in January as the job creation trajectory eased. The jobless rate rose to 4.1% as the economy added 44,300 jobs, lower than the previous month’s 60,000.

Donald Trump’s Liberation Day tariffs

Some analysts call for the RBA to cut rates because of the ongoing concerns about the global economy. Donald Trump announced a 25% tariff on automakers last week. He is also expected to have his Liberation Day on Wednesday, when he unveils his reciprocal tariffs.

To a large extent, Australia should be spared from these tariffs because the US has a trade surplus with the country. However, Australia may be affected because it does a lot of business with countries like China which may be hit the hardest.

These tariffs may push the Federal Reserve between a rock and a hard place because of stagflation in the US. Stagflation is a situation where a country has a high inflation and slow economic growth.

Stagflation is a highly difficult situation to deal with since an action to solve inflation often hurts the economic growth. Similarly, Federal Reserve cuts to boost growth often leads to higher inflation. 

AUD/USD technical analysis

AUD/USD chart by TradingView

The four-hour chart shows that the AUD/USD exchange rate has remained under pressure in the past few days. It has dropped from a high of 0.6391, its highest swing on March 18.

The pair has formed a head and shoulders pattern, a popular bearish sign in technical analysis. It is slightly above the neckline at 0.6267.

It has moved below the 50-period Exponential Moving Average (EMA). The MACD and the Relative Strength Index (RSI) are all pointing downwards. 

Therefore, the pair will likely continue falling as sellers target the key support at 0.6187, down by 1.50% below the current level. This price is its lowest level on March 4. A move above the resistance point at 0.6315 will invalidate the bearish view.

The post AUD/USD forecast: forms H&S pattern ahead of RBA decision appeared first on Invezz