Talking Points:
– USDOLLAR Carving Lower-Low Going Into End of Month/Quarter
– Bullish GBP/USD Outlook Remains Favorable for July
– AUD/JPY Holds Near-Term Support; Will RBA Toughen Verbal Intervention?
Index
Last
High
Low
Daily Change (%)
Daily Range (% of ATR)
DJ-FXCM Dollar Index
10385.07
10420.9
10383.42
-0.22
112.95%
USDOLLAR(Ticker: USDollar):
Dow Jones-FXCM U.S. Dollar Index continues to carve lower highs & lows as it slips to 10,382.
RSI retains bearish momentum; break below 40 continues to favor downside targets.
Despite the positive data prints, focus remains on Non-Farm Payrolls (+210K) as Fed retains dovish tone for monetary policy.
May (10,370) & October (10,354) remain in focus as USDOLLAR fails to hold 10,406 (1.618% Fibonacci expansion).
GBP/USD:
Rallies to fresh monthly high of 1.7112 despite slowdown in U.K. Mortgage Approvals (61.7K).
Will continue to look for a series of higher highs & lows in July as Bank of England (BoE) continues to show greater willingness to normalize monetary policy sooner rather than later.
Next key level of interest comes in at 1.7110-20 (78.6% Fib expansion from March advance).
AUD/JPY
Bounces back from near-term support (95.10-20) ahead of the Reserve Bank of Australia’s (RBA) policy meeting.
Remains capped by 96.00 following the string of failed attempts to close above the key figure; bearish RSI momentum remains in play.
RBA is widely expected to keep the benchmark interest rate at 2.50%; focus turns to verbal intervention.
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Read More:
Price & Time: Watching the Greenback Closely
Top Tier Economic Data: RBA, ECB and U.S. Non-Farm Payrolls
USDOLLAR Daily
Chart – Created Using FXCM Marketscope 2.0
Interim Resistance: 10,602 (38.2 retracement) to 10,615 (78.6 expansion)
Interim Support: 10,354 to 10,375 (50.0 retracement)
Release
GMT
Expected
Actual
NAPM-Milwaukee (JUN)
13:00
60.00
60.57
Chicago Purchasing Manager (JUN)
13:45
63.0
62.6
Pending Home Sales (MoM) (MAY)
14:00
1.5%
6.1%
Pending Home Sales (YoY) (MAY)
14:00
-9.0%
-6.9%
Dallas Fed Manufacturing Activity (JUN)
14:30
8.5
11.4
Fed’s John Williams to Speaks on U.S. Economy
17:10
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— Written by David Song, Currency Analyst
To contact David, e-mail dsong@dailyfx.com. Follow me on Twitter at @DavidJSong.
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Source: Daily fx