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Euro-Zone’s Manufacturing PMI Contracting For The Fifth Consecutive Month In June
For the 24 hours to 23:00 GMT, the EUR declined 0.55% against the USD and closed at 1.1289.
On the data front, the Euro-zone's final manufacturing PMI unexpectedly dropped to a level of 47.6 in June, contracting for the fifth consecutive month and compared to a reading of 47.7 in the prior month. Market participants and preliminary figures had indicated the PMI to record a rise to a level of 47.8. Meanwhile, the region's unemployment rate surprisingly fell to 7.5% in May, defying market consensus for a steady reading. In the previous month, the unemployment rate had recorded a reading of 7.6%.
Separately, in Germany, the Markit final manufacturing PMI contracted for the sixth straight month to a level of 45.0 in June, less than market anticipation and preliminary figures for a rise to a level of 45.4. In the prior month, the PMI had recorded a level of 44.3. However, the nation's seasonally adjusted unemployment rate remained steady at 5.0% in June, in line with market expectations.
In the US, data showed that the final Markit manufacturing PMI unexpectedly advanced to a level of 50.6 in June, defying market expectations and preliminary figures for a fall to a level of 50.1. In the preceding month, the PMI had recorded a level of 50.5.
On the other hand, the US ISM manufacturing activity index eased to a level of 51.7 in June, expanding at its weakest pace since October 2016, amid worries over ongoing tariff war. In the prior month, the PMI had recorded a reading of 52.1. Market participants had envisaged the index to record a drop to a level of 51.0. Further, the nation's construction spending surprisingly slid 0.8% on a monthly basis in May, defying market expectations for an unchanged reading. In the previous month, construction spending had recorded a revised rise of 0.4%.
In the Asian session, at GMT0300, the pair is trading at 1.1280, with the EUR trading 0.08% lower against the USD from yesterday's close.
The pair is expected to find support at 1.1250, and a fall through could take it to the next support level of 1.1220. The pair is expected to find its first resistance at 1.1335, and a rise through could take it to the next resistance level of 1.1390.
Moving ahead, traders would keep an eye on Euro-zone's producer price index for May along with Germany's retail sales for May, slated to release in a few hours.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
UK Manufacturing Sector Activity Fell To A Six-Year Low Level In June
For the 24 hours to 23:00 GMT, the GBP declined 0.40% against the USD and closed at 1.2647, after UK’s manufacturing sector activity unexpectedly eased to a six-year low level of 48.0 in June, reflecting the impact of Brexit and economic slowdown. In the previous month, the PMI had recorded a reading of 49.4. Market participants had expected the PMI to rise to a level of 49.5. Moreover, the nation’s mortgage approvals for house purchases dropped to a level of 65.4K in May, compared to a revised level of 66.0K in the prior month. Markets had envisaged mortgage approvals for house purchases to register a decline to a level of 65.6K.
On the contrary, Britain’s net consumer credit advanced £0.8 billion in May, rising at its slowest annual pace in five years and less than market anticipation for a gain of £0.9 billion. In the previous month, net consumer credit had recorded a revised rise of £1.0 billion.
In the Asian session, at GMT0300, the pair is trading at 1.2641, with the GBP trading 0.05% lower against the USD from yesterday’s close.
The pair is expected to find support at 1.2613, and a fall through could take it to the next support level of 1.2586. The pair is expected to find its first resistance at 1.2687, and a rise through could take it to the next resistance level of 1.2734.
Looking ahead, traders would await UK’s Nationwide house price index and the Markit construction PMI, both for June, set to release in a few hours.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
Japan’s Consumer Sentiment Deteriorated More-Than-Expected In June
For the 24 hours to 23:00 GMT, the USD rose 0.16% against the JPY and closed at 108.33.
Data showed that Japan's consumer confidence index declined to a level of 38.7 in June, more than market expectations of a fall to a level of 39.2. The index had registered a level of 39.4 in the previous month.
In the Asian session, at GMT0300, the pair is trading at 108.42, with the USD trading 0.08% higher against the JPY from yesterday's close.
The pair is expected to find support at 108.20, and a fall through could take it to the next support level of 107.97. The pair is expected to find its first resistance at 108.59, and a rise through could take it to the next resistance level of 108.75.
In absence of key economic releases in Japan today, investor sentiment would be determined by global macroeconomic events.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.
Switzerland’s Real Retail Sales Records Its Sharpest Decline In 8 Months In May
For the 24 hours to 23:00 GMT, the USD rose 0.65% against the CHF and closed at 0.9871, amid dismal economic data.
In economic news, Switzerland's SVME manufacturing PMI unexpectedly fell to a level of 47.7 in June, defying market expectations for a gain to a level of 49.0. In the prior month, the PMI had registered a level of 48.6. Moreover, the nation's real retail sales dropped 1.7% on an annual basis in May, marking its sharpest fall in 8 months and compared to a revised decline of 0.8% in the prior month. Markets had anticipated real retail sales to record a fall of 0.4%.
In the Asian session, at GMT0300, the pair is trading at 0.9870, with the USD trading marginally lower against the CHF from yesterday's close.
The pair is expected to find support at 0.9822, and a fall through could take it to the next support level of 0.9774. The pair is expected to find its first resistance at 0.9901, and a rise through could take it to the next resistance level of 0.9932.
With no macroeconomic releases in Switzerland today, investors would look forward to global macroeconomic releases for further direction.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
Loonie Trading A Tad Higher In The Asian Session
For the 24 hours to 23:00 GMT, the USD rose 0.26% against the CAD and closed at 1.3131.
In the Asian session, at GMT0300, the pair is trading at 1.3129, with the USD trading slightly lower against the CAD from yesterday’s close.
The pair is expected to find support at 1.3095, and a fall through could take it to the next support level of 1.3061. The pair is expected to find its first resistance at 1.3154, and a rise through could take it to the next resistance level of 1.3179.
Trading trend in the Loonie today is expected to be determined by Canada’s RBC manufacturing PMI for June, scheduled to release later in the day.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
RBA Trimmed Its Key Interest Rate To 1.00% From 1.25%
For the 24 hours to 23:00 GMT, the AUD declined 0.49% against the USD and closed at 0.6967.
LME Copper prices rose 0.5% or $27.0/MT to $5999.0/MT. Aluminium prices rose 0.3% or $4.5/MT to $1778.0/MT.
In the Asian session, at GMT0300, the pair is trading at 0.6977, with the AUD trading 0.14% higher against the USD from yesterday’s close.
The Reserve Bank of Australia’s (RBA) slashed its benchmark interest rate for the second consecutive month to 1.00% from 1.25%, as widely expected in a move to support economic momentum.
The pair is expected to find support at 0.6953, and a fall through could take it to the next support level of 0.6928. The pair is expected to find its first resistance at 0.7005, and a rise through could take it to the next resistance level of 0.7032.
Going forward, traders would await Australia’s AiG performance of service index, the CBA services PMI, both for June along with building approvals and trade balance data for May, slated to release overnight.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
China to abolish foreign ownership in finance industry in 2020, a year earlier
Chinese Premier Li Keqiang pledged, in the World Economic Forum in northeastern Chinese port city of Dalian, to further open up the finance and manufacturing industry. Li said, "We will achieve the goal of abolishing ownership limits in securities, futures, life insurance for foreign investors by 2020, a year earlier than the original schedule of 2021."
Additionally, manufacturing sector, including auto industry, will be opened by further by reduction in negative investment list that restricts foreign investment in some areas. Besides, the government will also reduce restrictions, in 2020, on market access in value-added telecoms services and transport sectors.
Li also noted "global economic risks are rising somewhat, international investment and trade growth is slowing, protectionism is rising and unstable and uncertain factors are increasing". And, "some countries have taken measures including cutting interest rates, or sent clear signals on quantitative easing." But he pledged China won't resort to competitive currency devaluation but keep the exchange rate stable at a reasonable and balanced level.
Gold: Yellow Metal Reverses Its Losses In The Morning Session
For the 24 hours to 23:00 GMT, Gold declined 0.59% against the USD and closed at USD1387.80 per ounce, as strength in the US dollar and global equity markets dampened demand appeal for the precious yellow metal.
In the Asian session, at GMT0300, the pair is trading at 1391.60, with gold trading 0.27% higher against the USD from yesterday’s close.
The pair is expected to find support at 1384.40, and a fall through could take it to the next support level of 1377.20. The pair is expected to find its first resistance at 1399.10, and a rise through could take it to the next resistance level of 1406.60.
The yellow metal is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average
Silver: White Metal Trading On A Weaker Footing This Morning
For the 24 hours to 23:00 GMT, Silver declined 0.39% against the USD and closed at USD15.21 per ounce, tracking losses in gold prices.
In the Asian session, at GMT0300, the pair is trading at 15.19, with silver trading 0.13% lower against the USD from yesterday’s close.
The pair is expected to find support at 15.11, and a fall through could take it to the next support level of 15.04. The pair is expected to find its first resistance at 15.30, and a rise through could take it to the next resistance level of 15.42.
The white metal is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
Crude Oil: Oil Trading Lower, Ahead Of API’s Weekly Crude Oil Inventories Data
For the 24 hours to 23:00 GMT, Crude Oil declined 1.39% against the USD and closed at USD58.86 per barrel.
Meanwhile, Organisation of the Petroleum Exporting Countries (OPEC) declared its decision to extend production cuts by nine months through March 2020 and completely support an agreement to validate its alliance with non-OPEC producers.
In the Asian session, at GMT0300, the pair is trading at 58.83, with oil trading 0.05% lower against the USD from yesterday's close.
The pair is expected to find support at 58.02, and a fall through could take it to the next support level of 57.21. The pair is expected to find its first resistance at 59.96, and a rise through could take it to the next resistance level of 61.09.
Crude oil is trading below its 20 Hr and 50 Hr moving averages.
