Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Aussie drops after mixed data sets
On Monday, the Australian dollar descended in Asia on mixed data sets, which demonstrated that retail sales missed expectations, the manufacturing PMI eased, though home building figures gained.
The currency pair AUD/USD reached 0.7618, tumbling 0.14% after the data. Besides this, USD/JPY touched 111.22, sliding 0.16%, while EUR/USD acquired 0.17%, getting to 1.0673.
In Australia the AIG manufacturing index for March declined to 57.5 from 59.3, while Japan's Tankan large manufacturers poll demonstrated a soar to plus-12 from plus-10.
In addition to this, in Australia building approvals soared 8.3%, overleaping the 0.5% dip observed for February. Besides this, retail sales sank 0.1%, thus missing the 0.3% surge expected.
On Monday, financial markets in Shanghai are unavailable for a holiday.
In the week ahead, market participants will be looking to Wednesday’s Fed minutes for fresh clues on the timing of the next American rate lift ahead of Friday’s closely watched nonfarm payrolls data as well as a gathering between Chinese President Xi Jinping and American President Donald Trump in Florida.
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.