Early on Wednesday, New Zealand is scheduled to release its Q2 employment report, while later in the day, Australia's AiG PMI is due. The highlight of the day will be the release of the ADP employment report.
Here is what you need to know on Wednesday, August 2:
On Tuesday, US stocks finished mixed, with the Dow Jones up by 0.20% and the Nasdaq down by 0.43%. US Treasury yields rose, with the 10-year reaching levels above 1.40%.
Economic data from the US came in mixed. JOLTS Job Openings and the ISM Manufacturing PMI below expectations. The US Dollar Index rose 0.35% on the day, after trimming gains during the American session. The Greenback rose across the board and remains strong. On Wednesday, the ADP employment report is due, which could be a preview for Friday's Nonfarm Payrolls.
- US JOLTS Job Openings edge lower to 9.58 million in June vs. 9.62 million expected
- US: ISM Manufacturing PMI rises to 46.4 in July vs. 46.8 expected
The Euro outperformed during the American session, with EUR/USD rebounding from above 1.0950 towards 1.1000. The pair still holds a bearish bias, but the Dollar's momentum has faded.
GBP/USD posted its lowest daily close in three weeks, below 1.2800, and continues to move with a bearish bias. On Thursday, the Bank of England will announce its decision on monetary policy, with a rate hike expected.
USD/JPY rose sharply for the third consecutive day, breaking above 143.00, the highest level seen since July 7. The Yen continues to be among the worst performers amid higher yields and the latest developments regarding the Bank of Japan.
The Australian dollar lagged on Tuesday after the Reserve Bank of Australia (RBA) opted to keep its key interest rate unchanged at 0.10%. The RBA offered a pessimistic assessment of the economic outlook but kept the door open to more rate hikes. AUD/USD dropped to test the key support area of 0.6600. It remains under pressure, and a break lower could trigger more losses.
NZD/USD gave up Monday's gains, pulling back to the 0.6150 area. New Zealand will report Q2 labor market data early on Wednesday. The unemployment rate is expected to rise modestly to 3.5%, and employment growth is expected to have stayed strong during the quarter at a 0.5% rate. The labor cost index is expected to have risen at a 4.5% annual rate. The numbers are unlikely to be a game-changer for the Reserve Bank of New Zealand, but a surprisingly positive report could add pressure to the central bank.
USD/CAD rose after many days of trading sideways, breaking above 1.3250. While above that level, more gains seem likely, but the currency is facing resistance at 1.3300.
It was a bad day for metals. Gold lost $30 from Monday's highs and bottomed around $1,940, while Silver tumbled 1.80%, ending the day near $24.30. Crude oil prices rose again, with WTI hitting fresh highs above $82.00.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.