China Caixin Services PMI (Jul): 53.8 (exp 52.2 prev 51.8)
China Caixin Composite PMI (Jul): 50.2 (prev 50.6)
Japan Nikkei Services PMI (Jul): 51.2 (prev 51.8)
Japan Nikkei Composite PMI (Jul): 51.5 (prev 51.5)
Australia AiG PSI (Jul): 54.1 (prev 51.2)
Japan PM Adviser Honda Sees No Need For BOJ Easing — RTRS
The US Dollar strengthened sharply in yesterday’s late NY session, pushing USD/CAD to a fresh multi-year high at 1.32 and EUR/USD back below 1.09. There were no apparent reasons, so the move seems flow-driven. With the 1.0865 support level broken as well, the next significant support level in EUR/USD lies now at 1.0805. A break below could accelerate downside momentum and target a move to 1.0650. USD/JPY is still struggling with heavy resistance at 124.50/55. While a breakout seems increasingly likely, gains will probably be limited ahead of the key NFP release. Above 124.50, the key levels are 125.00 and then 125.50/80.
AUD/USD gave up some of the gains it made yesterday, reaching a low of 0.7350 in the Asian session. Trendline support from the broken descending channel lies around 0.7340. NZD/USD fell after disappointing employment data, but the 0.65 level is still holding so far. There is talk of large stops resting sub-0.65, which should accelerate downside momentum if the level gets broken.