New Zealand is scheduled to release its second quarter employment report early on Wednesday, while Australia’s AiG PMI will be released later. The highlight of the day will be the release of the ADP employment report.
Here’s what to know on Wednesday, August 2:
On Tuesday, US stocks ended mixed, with the Dow Jones up 0.20% and the Nasdaq down 0.43%. US Treasury yields rose, with the 10-year yield hitting levels above 1.40%.
US economic data was mixed with JOLTS job offers and ISM manufacturing PMI coming in below expectations. The Dollar Index rose 0.35% on the day, after paring gains during the American session. The dollar rallied across the board and remains strong. The ADP jobs report will be released on Wednesday, which could be a preview of Friday’s Nonfarm Payrolls.
The Euro fared better during the American session, with the EUR/USD pair bouncing above 1.0950 towards 1.1000. The pair still maintains a bearish bias, but the momentum in the dollar has moderated.
He GBP/USD it registered 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, and a rate hike is expected.
The USD/JPY pair It rallied strongly for the third day in a row, breaking above 143.00, the highest level seen since July 7. The Yen remains one of the worst performing pairs amid rising yields and recent Bank of Japan events.
The Australian dollar fell on Tuesday after the Reserve Bank of Australia (RBA) opted to keep its key interest rate unchanged at 0.10%. The RBA offered a downbeat assessment of the economic outlook, but kept the door open for more rate hikes. The AUD/USD pair fell to test the key support zone of 0.6600. It remains under pressure, and a break down could trigger further losses.
The NZD/USD pared Monday’s gains and fell back to the 0.6150 area. New Zealand will report second quarter labor market data early on Wednesday. The unemployment rate is expected to rise slightly to 3.5%, and job growth has remained strong during the quarter at a rate of 0.5%. The labor cost index is expected to have increased at an annual rate of 4.5%. The figures 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 It rallied after many days of sideways trading and broke above 1.3250. As long as it holds above that level, it looks likely to go higher, but the currency faces resistance at 1.3300.
It was a bad day for metals. He Gold lost $30 from Monday’s highs and bottomed around $1,940, while the Silver it fell 1.80%, ending the day near $24.30. Crude oil prices rallied again, with WTI reaching highs above $82.00.
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Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
