Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Evergreen buck is intact after dismal data
Information is not investment advice
On Thursday, the major US currency rebounded from its unexpected dive following dismal economic data that sparked fears about the strength of the American economy and also backed the Fed’s intention to leave rates on hold in the nearer future.
Evaluating the purchasing potential of the key US currency against its primary rivals the USD index dived to 96.239 following the data prior to reviving to 96.391.
Without volatile items, new orders for durable goods tumbled suddenly in December. Meanwhile, business activity in the mid-Atlantic region demonstrated its outcome since May 2016, as follows from the Philadelphia Fed's monthly poll.
The data actually backs the Fed’s intention to stay patient with regards to interest rate lifts because it weighs surge headwinds, as minutes uncovered on Wednesday disclosed.
Besides this, investors were also awaiting developments on the US-China trade clash, with the world’s two leading economies reported to have already outlined commitments in such areas as services, intellectual property rights, agriculture and currency barriers to trade.
Versus its Japanese counterpart, the evergreen buck inched down. The currency pair USD/JPY declined by 0.17% hitting 110.65. Japan’s currency is normally sought by market participants as a safe haven in hard times.
In addition to this, the common currency rebounded from earlier maximums. The currency pair EUR/USD added 0.08% concluding the trading session at 1.1344 after the ECB told that near-term surge will be most probably weaker than anticipated.
As for the UK currency, it was intact. The currency pair GBP/USD showed 1.3048.
Aside from that, the currency pair AUD/USD dived by 1% reaching 0.7086 after Westpac bank forecast that the Reserve Bank of Australia would have rates cut twice this year. NZD/USD dipped by 0.6% hitting 0.6809.
The market sentiment deteriorated amid increasing virus cases in the USA and Australia. Investors prefer safe-haven assets like gold, the US dollar and the Japanese yen.
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.