Market Update - 01 Aug 2023

EUR/USD struggles to hold ground above the 1.1000 barrier on Tuesday. European Central Bank (ECB) President Christine Lagarde hinted at a possible pause in September. Market players will take fresh cues from the global Manufacturing PMI and German Unemployment rate data for June. (FXStreet)

USD/CHF lacks bullish bias within a trend-widening formation during four-day uptrend. RSI, MACD conditions suggest Swiss Franc buyer’s return. 200-SMA, multi-day-old descending resistance line add to the upside filters. Sellers may have to retreat from 0.8550-45 even as bearish megaphone favors downside bias. (FXStreet)

USD/CAD stays firmer while paring the biggest daily loss in two weeks. Oil price retreats amid firmer US Dollar, fears about China. Cautious mood ahead of top-tier activity data from US, Canada also propel Loonie pair. Friday’s US/Canada employment figures are the key to clear directions. (FXStreet)

AUD/USD reverses Monday’s recovery from three-week low after RBA inaction. RBA disappoints Aussie bulls by keeping rates unchanged for the second consecutive month. Looming death cross, downbeat break of immediate support line favor AUD/USD sellers in aiming 0.6630 key support. Aussie pair remains on the bear’s radar below 0.6800. (FXStreet)

The index gathers further traction and surpasses 102.00. US yields continue to trade without a clear direction. US ISM Manufacturing PMI will take centre stage. The greenback, in terms of the USD Index (DXY), extends the recovery to fresh three-week highs north 102.00 the figure on turnaround Tuesday. (FXStreet)

USD/JPY scales higher for the third successive day and climbs to a three-week high. The BoJ’s dovish outlook and unscheduled bond-buying operation weigh on the JPY. Bets for one more Fed rate hike boost the USD and remain supportive of the move. (FXStreet)

NZD/USD meets with a fresh supply on Tuesday and is pressured by a combination of factors. Bets for one more rate hike by the Fed lift the USD to a multi-week high and weighs on the pair. China’s economic woes dent the market sentiment and further undermine the risk-sensitive Kiwi. Traders now look to the US macro data for some impetus ahead of NZ jobs data on Wednesday. (FXStreet)

Gold price trades on the defensive near $1,955, down 0.41% for the day. The Chinese Caixin Manufacturing PMI for July fell to 49.2 from 50.5 prior, versus the market consensus of 50.3. The softer US inflation data might convince the Federal Reserve (Fed) to ease its hawkish stance. Investors await the US ISM Manufacturing PMI data later in the North American session. (FXStreet)

Silver meets with a fresh supply on Tuesday and stalls a two-day-old recovery from the 100-DMA. The setup seems tilted in favour of bulls and supports prospects for the emergence of dip-buying. A convincing break below $24.00 will negate the positive bias and pave the way for deeper losses. (FXStreet)

Source: FXStreet, DailyFX

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