RBA rate decision headlines the economic docket this week
During the upcoming trading week the Reserve Bank of Australia interest rate decision headlines the economic calendar. The RBA central bank is expected to keep rates unchanged and give a bleak current assessment of the Australian economy. The Australian dollar could be affected if the RBA express concern about the current strength of the Australian dollar.
Jobs data is also on traders' radar this week, with monthly job figures from the Canadian economy and weekly jobs data from the United States economy. The release of the ISM Non-Manufacturing Index will also be closely observed by traders and investors.
Monday 6th July, IS ISM-Non Manufacturing Index
The ISM Non-Manufacturing Index released by the Institute for Supply Management shows business conditions in the United States non-manufacturing sector. It is worth noting that the non-manufacturing sector does not influence, either positively or negatively, the GDP as much as the ISM Manufacturing Index. A result above 50 shows growth in the ISM Non-Manufacturing index.
- The EURUSD pair is only bearish while trading below the 1.1190 level, key support is found at the 1.1150 and 1.1100 levels.
- If the EURUSD pair trades above the 1.1190 level, buyers will likely test towards the 1.1290 and 1.1370 resistance levels.
Tuesday 7th July, 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 interest rates on hold at this meeting, following recent rate cuts. RBA policymakers are also tipped to strike a dovish tone towards the economy and monetary policy.
- The AUDUSD pair is only bearish while trading below the 0.6830 level, key support is found at the 0.6770 and 0.6650 levels.
- If the AUDUSD pair moves above the 0.6830 level, buyers may test towards the 0.7000 and 0.7130 levels.
Wednesday 8th July, US MBA Mortgage Applications
The MBA Mortgage Applications is released by the Mortgage Bankers Association and presents various mortgage applications. MBA Mortgage Applications are considered as a leading indicator for the United States Housing Market. Mortgage growth represents a healthy housing market that stimulates the overall United States economy. Normally, a high reading is seen as positive for the US dollar, while a low reading is seen as negative for the US dollar.
- The USDCHF pair is only bearish while trading below the 0.9520 level, further downside towards the 0.9440 and 0.9350 support levels seems possible.
- If the USDCHF pair trades above the 0.9520 level, buyers are likely to test towards the 0.9600 and 0.9680 resistance levels.
Thursday 9th July, US Continuing Jobless Claims
US Continuing Jobless Claims is released by the United States Department of Labor measure the number of individuals who are unemployed and are currently receiving unemployment benefits. It presents the strength in the labor market. A rise in this indicator has negative implications for consumer spending which discourages economic growth.
- The USDJPY pair is only bullish while trading above the 107.00 level, key resistance is found at the 107.90 and 108.40 levels.
- If the USDJPY pair trades below the 107.00 level, sellers may test towards the 106.50 and 106.00 levels.
Friday 10th July, Canadian Jobless Change
The Canadian Employment Change is released by Statistics Canada and is a measure of the change in the number of employed people in Canada. Generally speaking, a rise in this indicator has positive implications for Canadian consumer spending, which stimulates economic growth. A high reading is seen as positive, or bullish for the Canadian dollar, while a low reading is seen as negative for the Canadian dollar.
- The USDCAD pair is bearish while trading below the 1.3600 level, further losses towards the 1.3550 and 1.3400 levels remains possible.
- If the USDCAD pair trades above the 1.3600 level, buyers are likely to test the 1.3660 and 1.3710 resistance levels.