Global Markets:
- Asian stock markets: Nikkei up 0.50 %, Shanghai Composite fell 1.30 %, Hang Seng gained 0.20 %, ASX declined 0.55 %
- Commodities: Gold at $1086 (-0.45 %), Silver at $14.51 (-0.30 %), WTI Oil at $46.05 (+0.70 %), Brent Oil at $50.38 (+0.35 %)
- Rates: US 10 year yield at 2.25, UK 10 year yield at 1.88, German 10 year yield at 0.65
News & Data:
- New Zealand Unemployment Rate (Q2): 5.9% (exp 5.9% prev 5.8%)
- New Zealand Employment Change (QoQ) Q2: 0.3% (exp 0.5% prev 0.7%)
- New Zealand Employment Change (YoY) Q2: 3.0% (exp 3.4% prev 3.2%)
- China Caixin Services PMI (Jul): 53.8 (exp 52.2 prev 51.8)
- China Caixin Composite PMI (Jul): 50.2 (prev 50.6)
- Japan Nikkei Services PMI (Jul): 51.2 (prev 51.8)
- Japan Nikkei Composite PMI (Jul): 51.5 (prev 51.5)
- Australia AiG PSI (Jul): 54.1 (prev 51.2)
- Japan PM Adviser Honda Sees No Need For BOJ Easing — RTRS
Markets Update:
The US Dollar strengthened sharply in yesterday’s late NY session, pushing USD/CAD to a fresh multi-year high at 1.32 and EUR/USD back below 1.09. There were no apparent reasons, so the move seems flow-driven. With the 1.0865 support level broken as well, the next significant support level in EUR/USD lies now at 1.0805. A break below could accelerate downside momentum and target a move to 1.0650. USD/JPY is still struggling with heavy resistance at 124.50/55. While a breakout seems increasingly likely, gains will probably be limited ahead of the key NFP release. Above 124.50, the key levels are 125.00 and then 125.50/80.
AUD/USD gave up some of the gains it made yesterday, reaching a low of 0.7350 in the Asian session. Trendline support from the broken descending channel lies around 0.7340. NZD/USD fell after disappointing employment data, but the 0.65 level is still holding so far. There is talk of large stops resting sub-0.65, which should accelerate downside momentum if the level gets broken.
Upcoming Events:
- 08:15 BST – Swiss CPI
- 08:15 BST – Spanish Services PMI
- 08:45 BST – Italian Services PMI
- 08:50 BST – French Services PMI
- 08:55 BST – German Services PMI
- 09:00 BST – Euro Zone Services PMI
- 09:00 BST – Italian Industrial Production
- 09:30 BST – UK Services PMI
- 10:00 BST – Euro Zone Retail Sales
- 13:15 BST – US ADP Nonfarm Employment Change
- 13:30 BST – Canadian Trade Balance
- 14:45 BST – US Services PMI
- 15:00 BST – US Non-Manufacturing PMI
