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Monday, August 10th
NZD/USD drops to 0.6598 after closing above 0.66 on Friday. Ahead in the week, there is a block of news expected from New Zealand including card sales, Business NZ PMI, Food Price Index and the core retail sales data. The downside remains compelling for this pair given the divergence between the Fed and RBNZ. The support and resistance levels to watch are 0.6544 and 0.6687, respectively.
The data from Japan was mixed with adjusted current account reading of 1.30T as opposed to the forecast of 1.41T. Bank Lending was higher than expected, while Household Confidence declined to 40.3 from the previous reading of 41.7. USD/JPY is currently at 124.47. The expectations are mostly bullish for this pair ahead of Japanese data publication on industrial production and series of news from the US including CPI, Retail Sales and FOMC minutes. The first resistance level to watch is 124.68 with the next one located at 124.99. The support can be found at 123.71.
USD/CAD is rising today after volatile trade on Friday. The pair remains above the key support level formed by the highs of March 2009 - 1.3063, which might indicate further strengthening of the dollar against the loonie. The market is expecting to see Canadian data on Housing starts, New Housing Price Index and Manufacturing sales.
GBP/USD keeps declining after the stress imposed by “Super Thursday” and “Super Friday”. It is clear that the bulls are lacking strength especially after breaking through the trend line formed by lows of April 13, 2015 and July 8, 2015. The current market price is 1.5479, which is very close to the support level of consolidation corridor between 1.5690 and 1.5467. The expectations are mostly bearish. This week, economists are expecting to see the data from UK on Employment and wages.
AUD/USD is down to 0.7375 amid strengthening of the dollar imposed by the solid US jobs report data on Friday. The Non-Farm Payrolls data reinforced expectations for higher interest rates, which, according to RBA’s statement will cause further weakening of the aussie.
EUR/USD is slightly up to 1.0970. The flat trade is expected to continue further, while the sentiment is slightly bullish this week. Coming close to September, any comments from Fed will be closely monitored in anticipation of the rise of the greenback.
Your European ECN-broker,