Canada will announce its monthly GDP on July 31, at 15:30 MT time.
Market updates on August 6
Information is not investment advice
Key events ahead:
Speech by the FOMC member Bullard – 19:00 MT (16:00 GMT) time
- Yesterday, the US Treasury Department labeled China a currency manipulator after the USD/CNH rate jumped above the 7.1 level. After that, the People's Bank of China took steps to stabilize the yuan and softened the risk sentiment in the market. USD/CNH bounced from the 7.1023 level and moved lower to 7.0650. On H4, both RSI and stochastic oscillators left the overbought zone. This may be a signal of the downfall's continuation.
- NZD/USD tested the highs at 0.6575-0.6586 but failed to stick near these levels after the mixed employment data. The level of employment change increased by 0.3%, while the unemployment rate rose to 4.3%. Now the kiwi is consolidating ahead of the RBNZ meeting scheduled for tomorrow's morning. According to analysts, the rate cut is going to happen there. If it is true, the New Zealand dollar will weaken. On H4, the first support for the pair lies at 0.6509. After the breakout, the kiwi will be vulnerable to the fall towards the support zone at 0.6490-0.6486. From the upside, if the pair manages to stick above the 0.6547 level, it will increase the chances of the rise towards the 0.6575 level.
- The safe-haven gold tested the highs above the $1,465 level but formed multiple Doji candlesticks on H4. It signaled about the weakness of bulls. If the risk-off sentiment increases, the fall towards the first support at $1,448 will be inevitable. The next support will be placed at $1,436. In case of risk aversion due to more uncertainties surrounding US-China trade relations, gold will retest the $1,465 mark. Stochastic indicator left the overbought zone, which may signal a further slide.
The US unemployment claims are announced on Thursday at 15:30 MT time.
The Australian Monetary Policy Meeting Minutes are announced on Tuesday at 04:30 MT time.
The US dollar has broken through the key resistance, it failed to cross since March so far. Riskier assets are dipping. Let’s discuss it in detail.
Services and Manufacturing PMIs are out on Wednesday at 11:30 MT time.
The market sentiment remains risk-off amid rising virus cases around the world and fears over new restrictions and lockdowns.