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Today’s Highlights 02/06/17

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Aussie slips after soft Chinese data

  • AUD/USD gained initially on Australia’s strong retail sales for April, but gave back its gains to trade even lower in the next minutes, following the release of China’s Caixin manufacturing PMI for May. The Chinese index fell unexpectedly into contractionary territory. This renewed concerns about a slowdown of the Chinese economy. 
  • AUD/USD traded lower after the disappointing Caixin PMI, falling below the support hurdle of 0.7420 (R1), before finding fresh buy orders near the 0.7385 (S1) zone and subsequently rebounding. A clear break of that area could initially aim for the 0.7365 (S2) zone.

Today’s highlights:

  • Eurozone: Final manufacturing PMIs for May. The reaction in the euro could remain limited.
  • UK: Manufacturing PMI for May and forecast is for a decline.
  • US: ADP employment report for May. Forecast is for the private sector to have added 185k jobs, more than April’s print of 177k.
  • USD/JPY rebounded yesterday after it hit support near 110.50 (S1) territory. If the ADP print is solid today, we could see the latest rebound continue and perhaps challenge the 111.50 (R1) territory
  • Speakers: Fed Board Governor Jerome Powell; ECB Executive Board member Sabine Lautenschlager.

AUD/USD

AUDUSD Chart

  • Support: 0.7385 (S1), 0.7365 (S2), 0.7330 (S3)
  • Resistance: 0.7420 (R1), 0.7470 (R2), 0.7510 (R3)

USD/JPY

USDJPY Chart

  • Support: 110.50 (S1), 110.20 (S2), 109.70 (S3)
  • Resistance: 111.50 (R1), 112.10 (R2), 113.10 (R3)

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