Market Outlook and Pointers.
On AUDUSD, we are expecting the Australian central bank to schedule an announcement of its decision during the Asian session on Tuesday, which might play a key role in influencing the AUD/USD pair. Also, investors now eye US ISM Non-Manufacturing PMI for some impetus ahead of the RBA on Tuesday.
EUR/USD is bullish in the short-term as the pair is clearing the 1.1330 price zone and could accelerate the rally towards 1.1340. Gold gained some strong positive traction on Monday amid some aggressive USD selling. Indian and Chinese troops have begun a partial disengagement from several points along the contested Himalayan border region.
The easing of geopolitical tensions remained supportive of the upbeat market mood, which continued exerting some heavy pressure on the safe-haven USD.
USD/JPY failed to capitalize on its early uptick to three-day tops, around the 107.75 region. Bears might now wait for some follow-through selling below the 107.40 confluence support. Meanwhile, oil prices surged in European trade on Monday, to hit a 2-week high, and resumed its rally after pausing on Friday, lifted by hopes of global demand recovery and reaching the best market balance in July.
In the interim, Silver prices rose more than 1% on Monday, to head for the second daily gain in a row, near a 5-month peak, as the US dollar fell against a basket of currencies.
Goldman Sachs economists lowered their third-quarter US GDP growth forecast to 25% from 33% on Saturday, citing weak consumer services spending and the strong uptick in national coronavirus cases as Chinese stocks had their best day in a year as global markets ignore surging COVID cases and keep rising.
We see Chinese stocks having their best day in a year as global markets ignore surging COVID cases and keep rising. While Warren Buffett’s Berkshire Hathaway strikes $10 billion deal with Dominion Energy for natural gas assets.
Reddit and LinkedIn are making changes to their apps after Apple’s big new iPhone update caught them snooping (AAPL, LNKD). Bloomberg expects bitcoin to double to $20,000 this year, says something needs to go ‘wrong’ for it to not appreciate (BTCUSD).
USD/CAD off 2-week lows, still on the defensive below mid-1.3500s. WTI (August futures on Nymex) briefly regained the $41 barrier for the first time since June 23, although the bulls failed to resist above that level.
Reporting by Winsala Gbotemi, Staff Writer EGM.
Originally published at https://www.egmanalytics.com on July 6, 2020.