Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Aussie dives, Kiwi surges vs. greenback
On Thursday, the Australian dollar declined against the greenback, while the New Zealand dollar grew against its US counterpart, as financial markets were jittery after Wednesday’s mixed American data and ahead of a meeting between American President Donald Trump and Chinese leader Xi Jinping.
The currency pair AUD/USD lost 0.34%, being worth 0.7546, off a three-and-a-half week minimum of 0.7532.
The major US currency came under pressure after on Wednesday the Institute for Supply Management told that its index of non-manufacturing activity went down to 55.2 in March from February’s 57.6. It turned to be the lowest value since October 2016.
Additionally, payroll processor ADP informed that in March the American private sector generated up to 263,000 new jobs, which is far more than the 187,000, expected by economists.
The currency pair NZD/USD grew 0.20%, trading at 0.6979.
Traders were also cautious ahead of what was supposed to be a tense long-awaited summit meeting American President Donald Trump and Chinese leader Xi Jinping.
The Reserve Bank of Australia will publish its statement and announce the interest rate on July 7, at 7:30 MT time.
The overall market sentiment was mixed after the USA recorded the largest increase in virus cases since May 9. The data even offset the better-than-expected NFP.
The risk-on tone is back on the market again. Let’s look at main trading opportunities.