The market sentiment improved amid the slowdown in virus cases. Let's have a closer look at the AUD, S&P 500, gold and the GBP.
Daily News: the USD keeps trying
- The USD couldn’t rise even after positive economic data. Yesterday the prelim GDP figure was greater than the forecast, however, the currency returned to the psychological level at 94.50. Up to now, the index has been trying to recover. However, no important economic data will be released today. In case of positive news on the NAFTA deal, the index will fall below 94.50. If there is any risk-off news, the index will rise. The resistance is at 95.
- The AUD and NZD fell after the release of economic data.
ANZ Business Confidence was highly negative (-0.50.3). NZD/USD fell below the pivot point at 0.6670. If the USD recover, the pair will fall to the support at 0.6624. If the USD falls, the pair will return above the pivot point.
Australian Private Capital Expenditure figure was negative as well. AUD/USD fell below the pivot point at 0.7314. If the USD is strong, the next support is at 0.7247. If it’s weak, the pair has chances to return to the pivot point.
- Bitcoin reached the resistance at 7,074 and rebounded. Up to now, the cryptocurrency has been moving to the support at 6,890 (50-day MA). The next support is at 6.815.
Ministers of finance from the EU will meet on September 7 to discuss tightening rules on digital assets. This meeting will affect the cryptocurrency a lot. Be careful.
- Although a private survey showed a strong build in crude oil inventories, the official data showed a deficit in the number. As a result, both oil benchmarks increased. Brent reached highs of July 2018, WTI rose to July highs as well. As a result, the Canadian dollar appreciated against the USD yesterday. Up to now, USD/CAD has been recovering and the further direction of the pair will be determined by Canadian economic data (GDP figure will be released at 15:30 MT time). If the actual data is greater than the forecast, the CAD will appreciate. So the pair will return to the support at 1.29, the next one is at 1.2825. Moreover, positive news on the NAFTA deal will support the CAD. If the USD is stronger, the resistance will lie at 1.2990.
That’s all for today! Follow market news with FBS!
The RBA will make a rate statement on August 4 at 7:30 MT time.
The overall market sentiment is mixed as new virus cases continue rising throughout the world, but most economic indicators came out better than analysts expected. Let’s look at the main market movements.
The US NFP will be published on August 7 at 15:30 MT time.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
Follow the BOE monetary policy and rate statements on August 6 at 14:00 MT time…