Surprisingly sturdy Australian labor information and lowkey Chinese language authorities stimulus measures boosted AUD earlier at this time.
Will the AUD-buying result in AUD/CAD breaking its downtrend sample?
Earlier than shifting on, ICYMI, yesterday’s watchlist checked out AUD/NZD’s potential development continuation commerce forward of Australia’s labor market information launch. Make sure to take a look at if it’s nonetheless a superb play!
And now for the headlines that rocked the markets within the final buying and selling classes:
Contemporary Market Headlines & Financial Information:
World wheat costs soared after Russia ended grain take care of Ukraine, warned it could deal with ships heading for Ukrainian ports as potential army targets
U.S. constructing permits for June: 1.44M (1.46M forecast; earlier revised increased to 1.5M); housing begins fell by -8.0% m/m however higher than anticipated and nonetheless at pre-pandemic ranges.
EIA weekly US oil inventories for the week ending on July 14, 2023: -71M barrels to 457.4M barrels, nonetheless above the five-year common for this time of yr
U.S. inventory futures decrease after Tesla and Netflix earnings upset
Japan posts first annual commerce surplus in 23 months as exports grew by 1.5% y/y whereas imports dipped by 12.9% in June
PBoC set its USD/CNY day by day fixing at just below 7.15, about 680 pips stronger than estimates and the most important since November
PBoC raised a parameter on cross-border company financing beneath its macro-prudential assessments (MPA) to 1.5 from 1.25, permitting firms to borrow extra abroad in proportion to their property
Deputy Director Li Chunlin of China’s Nationwide Improvement and Reform Fee shared that two new insurance policies for supporting non-state-owned companies will likely be launched quickly
Australia added web 32.6K jobs in June vs. 15K anticipated, 76.6K earlier. The unemployment charge dipped from 3.6% to three.5% because the participation charge edged 0.1% decrease to 66.8%
Australia’s quarterly NAB survey confirmed enterprise confidence rising 1pt to -3 whereas enterprise circumstances dropped 8 pts to +9 as companies “moderated significantly” in Q2
Switzerland’s commerce surplus tightened from 4.4B CHF to three.3B CHF in June as exports fell by 1.7% m/m whereas imports grew by 3.7%
Germany’s producer costs edged up 0.1% y/y in June – the bottom since November 2020 – vs. 0.0% anticipated, 1.0% y/y in Could
Worth Motion Information
The Australian greenback was the most important market mover earlier at this time because of a one-two punch of sturdy Australian jobs information and the Chinese language authorities making strikes to stimulate its financial system.
Stronger-than-expected Australian labor market numbers give the Reserve Financial institution of Australia (RBA) room to boost its rates of interest increased if wanted.
In the meantime, the Folks’s Financial institution of China (PBoC) (a) setting its USD/CNY reference charge approach decrease than anticipated and (b) easing its guidelines to permit extra capital inflows would stimulate financial exercise in Australia’s largest buying and selling companion.
AUD, which was buying and selling close to its U.S. session lows, was already gaining floor earlier than Australia’s jobs information pushed it to new intraday highs throughout the board.
U.S. preliminary jobless claims at 12:30 pm GMT
Philly Fed manufacturing index at 12:30 pm GMT
Eurozone client confidence at 2:00 pm GMT
U.S. current dwelling gross sales at 2:00 pm GMT
U.S. CB main index at 2:00 pm GMT
U.Ok. GfK client confidence at 11:01 pm GMT
Use our new Forex Warmth Map to rapidly see a visible overview of the foreign exchange market’s value motion! 🔥 🗺️
Australia’s tight jobs information and China’s stimulus measures bought merchants shopping for AUD!
AUD/CAD, which was chillin’ close to its intraweek lows, jumped all the way in which to the .8980 zone earlier than taking a breather.
Is the pair set for an upside breakout?
Discover that AUD/CAD is discovering some assist on the R1 (.8960) of at this time’s Pivot Factors. On the identical time, it’s forming a attainable bullish flag sample on the 15-minute time-frame.
A bounce above at this time’s highs would imply that AUD/CAD has damaged above its descending channel sample.
The pair may head for the .9000 psychological deal with or the .9020 earlier highs earlier than sufficient sellers step in.
Watch this one carefully, yo!