Australian dollar unfazed by upbeat employment and Chinese data
The Australian dollar declined slightly even after some positive numbers this morning. Data from Australia showed that the economy added more than 210,000 jobs in June as the country continued to recover. This number was higher than the 112k that analysts were expecting. The participation rate rose to 64% from 62.9%. However, the unemployment rate rose from 7.1% to 7.4%. Other positive data came from China, which has become the first country to return to growth. According to the statistics office, the country’s economy expanded by 3.2% on a year on year basis and by 11.5% on a QoQ basis. This after the economy declined by 6.8% in the first quarter.
The euro eased a bit in the Asian session ahead of the upcoming interest rate decision by the ECB. The decision will come out at 11:45 (GMT). Analysts expect that the central bank will leave interest rates unchanged in this meeting. Also, they see the bank continuing with the quantitative easing program that it expanded in the previous meeting. This decision will come a day ahead of the important meeting of European leaders in which they will deliberate on the recovery fund.
The British pound eased slightly ahead of important employment numbers from the UK. The data is expected to show that the unemployment rate jumped to 4.2% in May while wages declined by 0.4%. Also, we will receive the car registration data. Meanwhile, we will receive the important retail sales, initial jobless claims, and manufacturing index from the US. Analysts believe that the retail sector made some modest improvements in June as most states reopened. However, the biggest risk is that the number of coronavirus cases in the US is rising, which puts this recovery at risk.
The EUR/USD pair eased slightly and is currently trading at 1.1406, which is slightly below yesterday’s high of 1.1453. On the hourly chart, the pair is trading slightly above the 50-day EMA while the RSI has been falling. The signal and main lines of the MACD have also started to drop. Therefore, the price is likely to continue falling so long as it moves below the 50-day EMA at 1.1400. If it does, traders will be aiming for the 100-day EMA at 1.1350.
The AUD/USD pair also declined slightly in the Asian session and is now trading at 0.7000. On the four-hour chart, the price is above the 50-day and 100-day exponential moving average and above the ascending white line. It is also between the upper and middle line of the Fibonacci fan. This means that the price is likely to continue falling as bears target the next support at 0.6950.
The XBR/USD pair is trading at 43.64, which is along the important resistance as shown by the blue line below. The price is slightly above the 50-day and 100-day EMAs. Also, it has formed an ascending triangle pattern. This pattern is usually a continuation triangle, which means that the price is likely to continue rising in the near term.