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Wednesday, August 5th
The Australian dollar fell despite strong AIG Services Index and Chinese Caixin Services PMI data coming out higher than expected. This was happening amid strengthening of the dollar after broad rise of US factory orders in June and hawkish comments from Fed, implying coming close to short-term rate hikes. Currently, AUD/USD is at 0.7365, but there are no indications that lows have been reached as of now. Strong psychological support level is at 0.7006 and intraday resistance level at 0.7432.
NZD/USD is down 0.4% after Employment change figure didn’t reach the expectations of 0.5% coming out at 0.3%. The pair is likely to test the 0.6500 support level. The closest resistance level is located at 0.6546 (Today’s Highs) with the next resistance at 0.6560 (March 2010 lows).
The rest of the week will be volatile for GBP/USD as current consolidation of the pair in between 1.5690 and 1.5467 will be developing into a trend. Bearing in mind that recent decline in cable prices did not have any fundamental reasons and was mostly stipulated by technical levels, the expected direction of forthcoming trend is upwards. This week, economic data from Great Britain is expected including Services PMI, Trade Balance and Interest Rate decision. Sterling is changing hands at 1.5583.
EUR/USD is down to 1.0867. Later in the day, retail sales data is due after Euro zone Services PMI came out at 54.00, a little higher than expected. The important levels to watch are 1.0770 for support and 1.0963 for resistance.
USD/CAD was higher testing the 1.3211 level. Canadian Trade Balance data will give the first indication of a developing bullish trend, if negative. The strong resistance level is now 1.3063.
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