Global Markets:
- Asian stock markets: Nikkei up 0.70 %, Shanghai Composite fell 0.35 %, Hang Seng dropped 0.60 %, ASX lost 1.20 %
- Commodities: Gold at $1084 (-0.15 %), Silver at $14.55 (-0.05 %), WTI Oil at $45.15 (+0.01 %), Brent Oil at $49.72 (+0.20 %)
- Rates: US 10 year yield at 2.26, UK 10 year yield at 1.96, German 10 year yield at 1.96
News & Data:
- Australia Employment Change (Jul): 38.5K (exp 10.0K prev 7.3K)
- Australia Unemployment Rate (Jul): 6.3% (exp 6.1% prev 6.0%)
- Australia Participation Rate (Jul): 65.1% (exp 64.8% prev 64.8%)
- Asia shares drop, dollar firm; U.S. data signals September hike – RTRS
- Robust U.S. services sector keeps Fed rate hike in play – RTRS
Markets Update:
The Australian Dollar fell after mixed Australian employment data. While the employment change beat expectations at 38.5k, the unemployment rate ticked up to 6.3 % vs. a 6.1 % forecast. The pair fell to a low of 0.7320, where it found some support. 0.7420 seems like a short-term top now and if the pair breaks sub-0.73, downside momentum is likely to accelerate, paving the way for another 0.7230 test. AUD/NZD fell to 1.12 after the data release, with the next intraday support level being 1.1180.
NZD/USD recovered slightly after trading briefly sub-0.65, but selling rallies remains the preferred strategy for the pair. Key intraday resistance lies at 0.6560, with the falling trendline on the hourly chart also near. Meanwhile, USD/CAD remains very well bid as the 1.31 support level held once again. Both WTI and Brent are posting fresh lows, which is keeping the Canadian Dollar under pressure. USD/JPY briefly touched the 125.00 level, but then fell back to 124.75. There is talk of bids building at 124.50, which is also a solid intraday support level.
Upcoming Events:
- 07:00 BST – German Factory Orders
- 09:30 BST – UK Industrial Production
- 09:30 BST – UK Manufacturing Production
- 12:00 BST – Bank of England Interest Rate Decision
- 12:00 BST – Bank of England Inflation Report
- 13:30 BST – US Initial Jobless Claims
- 15:00 BST – UK NIESR GDP Estimate
