Australian dollar gains on upbeat services PMI and retail sales
|The Australian dollar rose sharply after upbeat services PMI and retail sales numbers from the country. The data showed that the services PMI rose from the previous 26.9 to 53.1. Another number from the Australian Industry Group showed that the construction index rose from 24.9 to 35.5. Meanwhile, numbers from the statistics office showed that retail sales rose by 16.9% after falling by more than 17% in the previous month. And in China, the services PMI rose from 55.0 to 58.4. These numbers paint a picture of an Australian economy that is coming back to life after going through challenges in April.
The British pound was little changed during the American session as traders reacted to new developments on Brexit. In a statement yesterday, David Frost, the chief UK negotiator said that the two sides had made minimal progress in the first face-to-face meeting since March. Most traders believe that the two sides have a long way to reach a deal. Later today, we will receive the services and composite PMI data from Markit. Analysts expect that the two will remain unchanged at 47.0 and 47.6, respectively.
US stocks ended the week in the green as traders reacted to the upbeat US nonfarm payroll numbers. The data showed that the economy created more than 4.8 million jobs while the unemployment rate declined to 11%. This was the second month in a row that the economy had added more jobs and surprised analysts. Earlier in the week, data from ISM showed that the manufacturing sector had bounced back in June. However, enthusiasm was curbed by the rising number of coronavirus cases in the US. Data from health officials confirmed more than 53,000 infections.
EUR/USD
The EUR/USD pair was little changed during the Asian session. It is trading at 1.1244, which is slightly above yesterday’s low of 1.1223. On the four-hour chart, this price is along the lower side of the triangle pattern that has been forming this week. The price is slightly below the 50-day and 100-day exponential moving averages. Therefore, with no major data from the US today, the pair is likely to remain inside this triangle.
XBR/USD
The XBR/USD pair rose to an intraday high of 42.77 as traders banked on the recovery of the global economy. The price is above the ascending trendline shown in white. It is also slightly above the 50-day and 100-day exponential moving averages. Also, the RSI has been moving upwards and is currently at 64. This means that the price will continue rising as bulls attempt to test the next resistance level at 42.78.
USD/CAD
The USD/CAD pair declined slightly as traders reacted to upbeat trade numbers from Canada. The pair is trading at 1.3558, which is slightly below this week’s high of 1.3722. On the four-hour chart, the price is below the 50-day and 100-day EMAs. The RSI has also been falling and is now at 40. As such, the price is likely to continue falling as bears attempt to test the next support at 1.3486.
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