Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Aussie goes down after initial profit on China Caixin PMI
On Monday, the Australian dollar gave up its initial revenues in Asia, reacting to a better-than-expected Caixin PMI report from China.
As for the US dollar index, which normally tracks the American currency’s strength against six crucial currencies, it could only gain 0.09%, trading at 95.48.
The currency pair AUD/USD slid 0.17%, hitting 0.7676, USD/JPY showed 112.41, staying intact.
Meanwhile, in China Caixin's manufacturing PMI for June surpassed expectations, hinting the world's number two economy keeps defying hopes for a slowdown.
The private poll offered 50.4, thus marking a three-month peak. It definitely grew from May's outcome of 49.6 that was an 11-month minimum, and outperformed a Reuters survey forecast for 49.5.
The previous week the US currency steadied on Friday. Nevertheless, it concluded the trading week close to nine-month minimums amid hopes that several key financial institutions around the world are getting ready to join the Fed in tightening their monetary policies.
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.