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Thursday, August 13th
In Japan, data showed a higher increase in core machinery orders than expected in June. Meanwhile, the US dollar index, which measures the dollar’s strength against the basket of major currencies, rose 0.12% to 96.43. This rising of the dollar pushed USD/JPY higher to 124.46 after testing the 123.78 level yesterday. The pair is likely to find support at 124.09 and resistance at 124.89.
AUD/USD is trading flat at 0.7363 after excessive yuan volatility wanes after fixing. The Australian MI Inflation Expectations data came in at 3.7% after the previous reading of 3.4%. Ahead in the day, investors are viewing the US Core Retails Sales for further indications of dollar’s strengthening after the recent decline. The support and resistance levels are located at 0.7279 and 0.7472, respectively.
EUR/USD is showing correction after considerable gains of previous days when the pair managed to break through the 1.10 level to reach the highs of the month at 1.1213. One day after Greece agreed on the framework of the multiyear bailout the Greek Parliament is still expected to approve the deal. Today, German, French and Spanish CPI came out in green colour and market is expecting to see the European account of Monetary Policy Meeting in the afternoon. The pair will find support at 1.1036 and resistance at 1.1310.
New Zealand dollar was heading lower after yesterday’s gains. The Kiwi rose above 0.6648 amid weaker greenback, but today’s Food Price Index reading was lower than expected coming out at 0.6% against expectations of 1%. NZD/USD is trading at 0.6593.
USD/CAD is broadly lower falling below the key support level of 1.3063, which can be considered as a strong resistance from this moment. Technically, the rise of two previous weeks might be taken as a bullish trap if the downtrend continues. Later in the day, the Canadian New Housing Price Index is expected. The pair is trading at 1.2993.
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