The Australian Dollar initially showed strength today, accompanied by a rise in growth-focused assets.
This positive start to the week was fueled by a tremendous 20.6% month-on-month increase in building approvals for May, surpassing expectations.
However, the currency struggled to maintain its momentum despite the encouraging news.
APAC equities also joined in on the positive trend, following Wall Street’s solid performance on Friday.
Optimism was further boosted by positive economic news from North America. Additionally, China’s Caixin PMI manufacturing data exceeded expectations, contributing to the overall positive sentiment.
In a potentially significant development, the US announced that Treasury Secretary Janet Yellen will visit China this week, indicating a possible improvement in US-China relations.
Crude oil experienced a relatively calm session, recovering from a recent dip. The WTI futures contract is close to $70.50 per barrel, while the Brent contract hovers just above $75 per barrel.
Meanwhile, spot gold remained relatively stagnant, trading near $1,920 at the time of writing. However, the precious metal may face pressure if Treasury yields continue to rise.
Looking ahead, market focus will be on European PMIs and US ISM manufacturing figures.
Get more updates from TraderFactor’s full economic calendar.
EUR/USD: Retracement Continues as US ISM PMI Approaches
The EUR/USD currency pair is currently consolidating below the key level of 1.0900 in the European session.
The recent drop in the pair is being attributed to the strengthening of the US Dollar, as risk sentiment remains cautious amidst pre-US Independence Day trading.
Later today, the US economic docket will feature the ISM Manufacturing PMI data, with investors expecting a slight improvement to 47.2 in June from 46.9 in May.
If the reading surpasses 50, it could help strengthen the US Dollar in the second half of the day.
It is important to note that trading conditions may thin out in the American session as stock and bond markets in the US close early for the Independence Day holiday. This could make it challenging for the Euro/US Dollar pair to find direction.
Hot Topic: AUD/USD on Watch for RBA’s Interest Rate Decision
Gold Prices Remain Steady Despite Stronger US Dollar: Attention Shifts to Key Economic Data Ahead of Independence Day
Gold prices showed minimal change at the beginning of the week, with a slight decrease attributed to a stronger US dollar.
The price of gold is influenced by various US factors, such as last week’s core PCE deflator data which fell short of expectations.
Reflected in money market pricing, there is a high likelihood, around 85%, of a 25 bps interest rate hike from the Fed. There is also a possibility of another hike later this year, although the market remains uncertain at present.
To gain better insight, our attention should be directed towards key economic data for this week, especially Friday’s Non-Farm Payroll (NFP) report.
Today, the release of the US ISM Manufacturing PMI data will be closely monitored. Although not as significant as the Non-Manufacturing data. Typically, the US economy is primarily service-driven, the manufacturing sector has experienced contraction since November 2022, showing no signs of improvement.
Even a slight improvement could bolster the US dollar ahead of tomorrow’s Independence Day holiday, which is anticipated to bring about low volatility until US markets reopen on Wednesday.
Wall Street Updates: Stocks Start New Quarter Positively
Get ready for the latest outlook on the S&P 500 and Nasdaq 100 indices! With signs of fatigue, the Nasdaq 100 may be overbought, but there’s no sign of a reversal.
On the other hand, the S&P 500 has broken through key resistance. What’s next for these two indices? Stay tuned for insights ahead of the US jobs data.
Tesla and BYD sales boost electric-car makers
Oil prices rally as Saudi Arabia and Russia extend supply cuts. Nasdaq 100 contracts rise after strong first half.
Energy and mining shares lead European equities gain, while AstraZeneca’s new cancer medicine raises concerns.
Investors cautiously optimistic after strong first half, watching upcoming earnings season and economic data. US markets quiet ahead of Independence Day holiday.
Bitcoin Soars Above $30,500 Resistance, Sets Sights Above 31K
Bitcoin is defying gravity as it surges past the critical resistance level of $30,500.
Not only is the price trading above $30,500, but it is also above the 100 hourly Simple Moving Average.
Additionally, a significant bullish trend line is taking shape with support around $30,500, providing further optimism.
Traders are eagerly watching for a breakout above the $31,000 barrier, which could trigger a wave of bullish momentum.
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