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Oil price hits 1-month low

The world doesn’t pay you for what you know; it pays you for what you do. – Jack Canfield

 

 

HEADLINES

 

 

  • AUD/USD continues to push lower toward multi-month lows near 0.7400
  • Dollar recovers ground as jobless claims data helps
  • Gold rises on second day of Powell testimony
  • Oil Dips to One-Month Low on Strong Dollar and OPEC+ Uncertainty
  • Nasdaq tumbles as investors turn away from Big Tech
  • Wall St falls as growth stocks slip, value plays rise on falling jobless claims
  • BoJ Preview: Forecast from Standard Chartered

 

 

FOREX

 

 

AUD/USD continues to push lower toward multi-month lows near 0.7400

 

The AUD/USD came under renewed bearish pressure during the American trading hours and was last seen trading at 0.7417, losing 0.85% on a daily basis. With a drop below 0.7109, AUD/USD will renew its lowest level since December.

Earlier in the day, the data from Australia showed that the unemployment rate declined to 4.9% in June from 5.1%. The Employment Change arrived at 29.1K following May's increase of 115.2K and missed analysts' estimate of 30K. Meanwhile, Consumer Inflation Expectations declined to 3.7% from 4.4%.

 

Dollar recovers ground as jobless claims data helps

 

The U.S. dollar advanced on Thursday, recovering much of the ground lost in the prior session after the head of the Federal Reserve told Congress he saw no need to rush the shift towards tighter post-pandemic monetary policy.

 

 

COMMODITIES

 

 

Gold rises on second day of Powell testimony

 

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Thursday as investors watched the second day of U.S. Federal Reserve Chairman Jerome Powell's testimony. Powell continued his testimony before U.S. Congress for a second day, saying inflation is a short-lived phenomenon and removal of some of the Fed's stimulus was some way off as the labor market still struggles to rebound from the pandemic.

 

Oil Dips to One-Month Low on Strong Dollar and OPEC+ Uncertainty

 

Oil slid to a four-week low Thursday as the dollar strengthened and on OPEC+’s signal it may raise output soon. Futures in New York slid 2% on Thursday with a rising U.S. dollar reducing the appeal of commodities priced in the currency. Traders are watching to see whether the OPEC+ alliance sets a date to formalize a deal to hike production after delegates said Wednesday the United Arab Emirates made significant progress in resolving its standoff with Saudi Arabia.

 

 

STOCKS

 

 

Nasdaq tumbles as investors turn away from Big Tech

 

The Nasdaq tumbled on Thursday, pulled lower by Apple, Amazon and other Big Tech companies as investors digested a fall in weekly jobless claims and concerns about a recent inflation spike. Amazon, Apple and Facebook dropped more than 1% each. Nvidia tumbled 4% and Tesla fell almost 2%.

 

Wall St falls as growth stocks slip, value plays rise on falling jobless claims

 

U.S. stock indexesfell on Thursday as a rally in growth stocks ran out of steam, while economically sensitive cyclicals gained as a fall in weekly jobless claims last week strengthened views about a recovery in the labor market.

 

 

ANALYSIS

 

 

BoJ Preview: Forecast from Standard Chartered

 

“We expect the BoJ to keep the policy balance rate unchanged at -0.1% and the 10Y yield target at c.0%. While Japan’s exports and production have shown an improvement, driven by global demand, domestic demand remains depressed due to COVID-19 concerns and the extended state of emergency.

We think the BoJ is unlikely to turn hawkish as CPI remains benign; Kuroda said that global inflationary pressure is not a concern beyond this year, so its impact on Japan will be limited. We expect Japan’s economy to have rebounded in Q2, supported by strong exports and investment. Fiscal policy is likely to be expansionary in H2, with the incentive for increased government spending likely to be strong in an election year.” 

 

 

CHART

 

 

Aussie dollar / US dollar – Daily Candlesticks

Source: GKFX Prime Metatrader 4

AUD/USD has found support from old resistance at the September 2020 peak. Should this support give way, the downside price objective from the completed long-term head and shoulders pattern is the demand area created by the September-October 2020 lows. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

SOURCE


https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/boj-preview-forecasts-from-six-major-banks-hard-to-see-new-measures-this-time-202107151205
https://www.fxstreet.com/news/aud-usd-continues-to-push-lower-toward-multi-month-lows-near-07400-202107151726
https://www.reuters.com/business/swiss-franc-marches-higher-vs-struggling-euro-growth-scare-concerns-2021-07-15/
http://www.china.org.cn/world/Off_the_Wire/2021-07/16/content_77630567.htm
https://finance.yahoo.com/news/oil-extends-losses-u-stockpile-235610174.html
https://finance.yahoo.com/news/us-stocks-nasdaq-tumbles-investors-181706238.html

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