17th July 2020 - AUD/USD consolidates losses below 0.7000 as risk sentiment sours


Good Morning,

Market Headlines

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.

Currencies

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 Thoughts

  • 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

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