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Market Watch – Wednesday July 2nd – Bearish Dollar, Kiwi Slips, and more
Posted On 02 Aug 2017
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Dollar still looks bearish. Even after bouncing of 15-months low U.S. Dollar is still seem stuck in a bear trend. Investors begin positioning for the Friday’s U.S. employment data that created a pause in selling of the battered currency. Dollar was weighted down by political turmoil this Monday and uninspiring U.S. economic data that raised doubts about the path for higher interest rates.
Kiwi slips to 1-week low. The New Zealand dollar was down 0.5 percent at a one-week low of $0.7427 on the data showed that the number of jobs created fell unexpectedly and wage inflation remaining tepid in the second quarter.
Gold moves up. Weak dollar makes gold prices trading nominally higher. The turmoil among the White House staff is mildly supportive for safe-haven gold. Oil bulls still have upside technical momentum, and that’s also friendly for the metals. Investors may reluctant to take large positions ahead of closely watched U.S. employment data, that may tend toward gold prices consolidation for the next few days.
Price may approach the 1277.50 level if the bulls can hold prices above the hourly cloud. Closing beyond 1277.50 may be a sign that market is getting ready to test 1282. If XAU/USD falls through 1264-1262.70 (the bottom of the hourly cloud), the market will be aiming for 1257.50-1255. The bears will have to overcome this support so that they can set sail for the 1250 level.
Aussie is ranging due to the RBA’s Rate Statement. Due to a strong currency and weak inflation Australia’s central bank on Tuesday marked a full year without changing interest rates. Economists say that rates could stay at record lows of 1.5 percent for another year. The Aussie jumped about 8% since June to a two-year peak, driven by a weakened U.S. Dollar. It is now going nowhere, ranging in a wide zone between 0.7878 and 0.8069.
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