After a quiet start, the second day of the second half will offer the decision of the Reserve Bank of Australia, which will be the key event. The US market will be closed due to Independence Day.
Here’s what to know on Tuesday, July 4:
On a quiet Monday, US stocks ended modestly higher in short session. On Tuesday, Wall Street will be closed due to Independence Day. Low volume could lead to consolidations and/or erratic movements.
The US dollar lost momentum on Monday after the release of the ISM manufacturing PMI, which came in below expectations. The ISM manufacturing PMI fell from 46.9 to 46, against expectations for a modest rise to 47.2.; the Index of Prices Paid fell from 44.2 to 41.8, and Employment fell from 51.4 to 48.1. The DXY bottomed and then bounced to end the day flat around 103.00.
JP Morgan’s global manufacturing PMI fell to the lowest level in six months:
The situation in the global manufacturing sector worsened at the end of the second quarter. In June, production fell back into contraction territory after a further decline in the intake of new orders. This led manufacturers to adopt a more cautious attitude, with a sharp cut in purchases, reduction of inventories, maintenance of employment and business optimism falling to its lowest level in seven months.
After the holidays, the Fed will release the minutes of the June FOMC meeting on Wednesday. Later, attention will turn to US jobs data with ADP, jobless claims and JOLTS on Thursday, and non-farm payrolls on Friday.
The EUR/USD pair ended flat around 1.0900. The pair reached a high of 1.0935 after the US data and then pulled back. It is currently listed on the side, without a clear direction. Germany will publish Trade data on Tuesday.
GBP/USD failed to clearly break above 1.2700 and ended flat around 1.2690. The EUR/GBP It rose slightly but closed below 0.8600.
USD/CHF continued to move sideways below 0.9000. The Swiss franc lost ground on Monday, after weaker-than-expected Swiss inflation data came out. The Consumer Price Index fell to 1.7% year-on-year.
The USD/JPY pair ended higher around 144.70 on a volatile Monday, after testing levels below 144.00 following the US data. The rebound in government bond yields weighed on the Japanese Yen.
The AUD/USD pair rose for the third day in a row, extending its recovery from weekly lows, but remained below 0.6700. On Tuesday, the Reserve Bank of Australia (RBA) will announce its decision on monetary policy. The uncertainty is whether the RBA will raise its key rate by 25 basis points or hold off. A no-raise decision could weigh on the Australian dollar.
The NZD/USD pair rallied on risk appetite and US dollar weakness, breaking above the 0.6150 level. NZIER Q2 Business Confidence to be released.
USD/CAD continues to move sideways around 1.3250. On Tuesday, the Bank of Canada will release its business outlook survey.
Crude oil prices hit weekly highs and then reversed. WTI fell 0.40%, around $70.00. Cryptocurrencies were mixed, with Bitcoin gaining 2% to break above $31,200, while Ethereum was up 2.30% nearing $2,000.
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Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
