Employment data from the US failed to impress overnight coupling that with virus numbers increasing weighed on equity markets overnight with the S&P and NASDAQ both coming off by 0.7% while the Dow Jones finished 0.5% lower. On the Commodities front, Crude oil futures dropped by -1.2%, Copper gained +0.8%, Wheat dropped by -2.7%, Iron ore dropped by 1.0% and Gold finished off at $1795.
AUD/USD: 0.6965 – 0.7012
EUR/USD: 1.1370 – 1.1442
GBP/USD: 1.2520 – 1.2625
USD/JPY: 106.92 – 107.40
USD/CAD: 1.3509 – 1.3580
NZD/USD: 0.6528 – 0.6568
AUD/USD bounces off 0.6962 after posting the biggest losses in three weeks the previous day.
Global markets remain dull as vaccine-led optimism fades amid escalating US-China tussle and mixed data.
Aussie Unemployment Rate matched anticipated hike, Chinese Retail Sales and US Jobless Claims failed to please.
A light calendar after a busy day, risk catalysts keep the driver’s seat
Looking forward, the economic calendar doesn’t offer any major data/events during the Asian session that could move the markets. As a result, markets will have to keep eyes on the pandemic headlines and updates concerning the US-China story for fresh impetus.
Unless breaking below 0.6900 thresholds, the pair’s gradual run-up to challenge June month’s high around 0.7065 can’t be ruled out.
Event Risk Data Today
NZ - BizNZ June PMI
EU – June construction PMI;
US – June building permits and housing starts
US – July Uni of Michigan sentiment