The United States will publish ISM manufacturing PMI on April 1, at 17:00 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.
Canada will publish the monthly GDP growth on Tuesday, at 15:30 MT time.
The British pound has increased in value over the course of the past week in line with an ongoing improvement in investor sentiment.
The country has come through the worst and is recovering now.
Moody’s downgraded the country to ‘junk’ status on Friday.
The US economy has been hit hard by the coronavirus outbreak.