Traders look to take direction from manufacturing and jobs data
Traders will digest the outcome of the G20 leader’s summit on Monday, ahead of a week of high-impacting macroeconomic data releases to start the new trading month. The highlights of the economic calendar come from the United States economy this week, with the June ISM Manufacturing report and US Non-farm payrolls jobs reports likely to be the key drivers for financial markets.
This week we also see an interest rate decision from the Reserve Bank of Australia and PMI manufacturing data from the EU, Chinese, UK and United States economy. Traders also look to the release of Jobs and Retail Sales numbers from the eurozone economy.
Monday 1st July, USD Manufacturing PMI
The United States Manufacturing PMI reports on Manufacturing activity inside the American economy and represents economic indicators derived from monthly surveys of private sector companies. PMI data provides advance insight into the private sector economy by tracking variables such as output, new orders, employment and prices across these key sectors.
- The EURUSD pair is bullish while trading above the 1.1290 level, key resistance is found at the 1.1410 and 1.1500 levels.
- If the EURUSD pair moves below the 1.1290 level, sellers are likely to test towards the 1.1255 and 1.1225 support levels.
Tuesday 2nd July, AUD, RBA Rate Decision
The Reserve Bank of Australia Rate Decision is the market interest rate on overnight funds, with the RBA standing as the central monetary authority for the Australian economy. The Reserve Bank of Australia is widely expected to keep the nations interest rate on-hold at 1.25 percent at this meeting and strike an overall dovish tone towards the economy and future monetary policy.
- The AUDUSD pair is bullish while trading above the 0.6930 level, key resistance is found at the 0.7077 and 0.7130 levels.
- If the AUDUSD pair moves below the 0.6930 level, sellers may test towards the 0.6910 and 0.6880 levels.
Wednesday 3rd July, GBP UK Services PMI
The United Kingdom Services PMI is released by both the Chartered Institute of Purchasing and Supply and also Markit Economics. The UK Services PMI is a key indicator of the economic situation in the UK services sector which captures an overview of the condition of sales and employment. It is worth noting that the United Kingdom service sector comprises roughly eighty percent of the United Kingdom’s gross domestic product.
- The GBPUSD pair is bearish while trading below the 1.2710 level, key support is found at the 1.2610 and 1.2510 levels.
- If the GBPUSD pair trades above the 1.2710 level, buyers are likely to test towards the 1.2780 and 1.2840 resistance levels.
Thursday 4th July, EUR EU Retail Sales
EU Retail Sales measures the changes in sales inside the eurozone retail sector in the short term and also the percentages changes. EU Retail Sales are widely followed as an indicator of consumer spending and the health of the European consumer. Usually, positive consumer spending growth is taken as a positive for the euro currency, while a low reading is seen as negative for the euro currency.
- The EURGBP pair is only bearish while trading below the 0.8740 level, further downside towards the 0.8640 and 0.8560 support levels seems possible.
- If the EURGBP pair holds above the 0.8740 level, buyers are likely test towards the 0.9040 and 0.9130 resistance levels.
Friday 5th July, US Nonfarm Payrolls Job Report
The NFP job report shows the monthly change in employment in the American economy, excluding the farming sector. The Non-farm payrolls job report is the most carefully observed indicator in the employment situation inside the United States. It is considered the most inclusive calculation of job creation, which causes the Nonfarm Payrolls Job report to become highly significant to market participants, due to the great importance of labour in the United States economy.
- The USDJPY pair is only bearish while trading below the 108.00 level, further losses towards the 107.00 and 106.40 levels remains possible.
- If the USDJPY pair trades above the 108.00 level, buyers are likely to test the 109.00 and 109.30 resistance levels.