The price of crude oil rose slightly in the American and Asian sessions after the Energy Information Administration (EIA) released inventories data. In the previous week, inventories declined by more than 3.1 million barrels. This was a higher decline than the consensus estimate of more than 2.96 million. It was lower than the previous week’s decline of more than 9.4 million barrels. In the past few weeks, the US has seen falling inventories as the driving season of the summer starts. Meanwhile, the gasoline inventories increased by more than 3.56 million barrels while the weekly distillate stocks rose by more than 5.6 million barrels.
The Japanese yen gained against the USD in the Asian session after Japan released important data. In June, the country’s exports declined by -6.7%. This was a worse than the expected decline of -5.6%. In May, exports had declined by more than 7.8%. Imports on the other hand declined by -5.2% in the month. This made the trade surplus increase to Y589 billion. This data came at a time when there is a mini trade war between Japan and South Korea. This happened after Japan started restricting exports of critical materials used in South Korea’s tech industry. Specifically, Japan started restricting sales of components critical in the manufacture of chips and screens.
The Australian dollar rose after Australia released its jobs numbers. In June, the unemployment rate and the participation rate remained unchanged at 5.2% and 66% respectively. The full employment change rose from just 2.4k in May to more than 21.1k in June. At the same time, the NAB quarterly business confidence rose to 6 from the previous decline of -1. Later today, investors will receive the trade data from Switzerland, UK retail sales, US initial jobless claims, and the Philadelphia Fed manufacturing index.
The AUD/USD pair rose sharply after Australia released employment data for June. The pair is trading at 0.7030, which is the highest level since Tuesday this week. On the hourly chart, the pair is trading above the 50-day and 25-day moving averages while the RSI rose close to the overbought level of 70. The price is along the upper line of the Bollinger Bands. The pair will likely continue the upward trend to test the important resistance level of 0.7043.
The EUR/USD pair rose to a high of 1.1238, which is higher than the week’s low of 1.1200. On the hourly chart below, this price is along the 23.6% Fibonacci Retracement level. The price is slightly above the 50-day and 25-day moving averages. The RSI has moved from the oversold level of 16 to a high of 62. The pair will likely continue moving higher, to test the important support level of 1.1265.
The USD/JPY pair declined sharply after Japan released trade data. The pair is now trading at 107.67, which was slightly above the day’s low of 107.63. This was the lowest level since July 3. On the hourly chart, this price is along the lower line of the Bollinger Bands while the RSI has dropped to a low of 24. The momentum indicator has dropped to below the 100 mark. The pair will likely continue moving lower to test the important support of 107.50.