Market Update - 31 July 2023

AUD/USD recovers some ground and currently trades around 0.6680, gaining 0.48% for the day. The US Core PCE Price Index came in at 4.1% annually, down from 4.6% in May and 4.2% prior. Australia's Retail Sales fell 0.8% MoM, against the market expectation of 0.0% and 0.7 prior. Investors will closely watch the RBA Interest Rate Decision and US Nonfarm Payrolls later this week. (FXStreet)

NZD/USD takes the bids to refresh intraday high, prints the first daily gain in four. Kiwi pair’s recovery from two-month-old support line needs validation from 200-EMA and NZ/US data. Downbeat oscillators, two-week-old falling resistance line acts as additional upside filters. (FXStreet)

USD/CAD takes offers to refresh intraday low during the first daily fall in five. Oil price snaps two-day uptrend with mild losses near multi-day high. US Dollar bulls struggle to keep the reins amid pre-NFP anxiety, mixed Fed talks and data. Month-end consolidation joins dicey markets to prod Loonie pair buyers ahead of US NFP, Canada employment data. (FXStreet)

EUR/GBP oscillates in a tight range around 0.8565, down 0.12% on the day. Germany's Retail Sales MoM decreased by 0.8% against the market consensus of -0.2% and 0.2% prior. Most economists surveyed by Reuters expect the BoE to hike rates to 5.25% from 5%, peaking at 5.75%. Market players will closely watch the BoE interest rate decision on Thursday. (FXStreet)

The index advances marginally around 101.70. US yields kick off the week with small gains so far. Investors’ attention will be on the US labour market this week. The USD Index (DXY), which gauges the greenback vs. a bundle of its main rival currencies, looks to extend the ongoing rally near the 101.70 region on Monday. (FXStreet)

USD/JPY surpasses 142.00 as investors digest BoJ policy tweak. BoJ allowed more flexibility in the YCC but kept interest rates in the negative territory. Risk-perceived assets discovered strength as the US core PCE price index softened further. (FXStreet)

EUR/JPY rises to near 157.00 as upbeat Eurozone data warrants more interest rate hikes from the ECB. Monthly Eurozone inflation deflated by 0.1% in July while GDP came out of contraction and expanded by 0.3% in Q2. The Japanese Yen has been hit hard despite BoJ allowing more flexibility to the YCC. (FXStreet)

GBP/JPY adds to Friday’s strong move up and scales higher for the second straight day. The BoJ’s unscheduled bond-buying operation weighs on the JPY and extends support. The divergent BoJ-BoE policy stance supports prospects for a further appreciating move. (FXStreet)

Gold price seeks US economic data to gauge a decisive move. The US Dollar Index remains in the bullish trajectory as the tight labor market supports more rate hikes from the Fed. The US manufacturing sector looks to be contracting for the ninth month in a row amid an aggressive rate-tightening cycle. (FXStreet)

Silver comes under fresh selling pressure and reverses a part of Friday’s modest recovery gains. The technical setup favours bearish traders and supports prospects for further near-term losses. A sustained strength above the $25.00-$25.25 region is needed to negate the negative outlook. (FXStreet)

Source: FXStreet, DailyFX

Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.

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