US dollar unchanged after better-than-expected manufacturing data
The US dollar was relatively unchanged even after Markit released slightly better-than-expected manufacturing PMI data. The data showed that the PMI rose to 51.0 from the previous 50.3. This data showed that manufacturing activity in the US was improving as that of the European Union faltered. Earlier on, data from Markit showed that the PMI in the EU had contracted to 45.6 from the previous 47.0. In Japan, data showed that the PMI declined to 48.9 from the previous 49.3. A PMI number below 50 is usually a sign of contraction.
The price of crude oil was unchanged as the United Nations General Assembly (UNGA) kicked off. Traders expect that there will be some discussions about the volatile situation in the Middle East. At the center of the negotiations will be the Iran nuclear deal. According to the Financial Times, the United Kingdom has called for a Trump deal to replace the original JCPOA. In an interview, Boris Johnson said that the original JCPOA deal was flawed and should be renegotiated. France has also supported a renegotiation. However, Iran has rejected renegotiation. Last week, the country was accused of conducting the attacks in Saudi Arabia.
Today, traders will receive survey data from Germany. The IFO business climate index is expected to improve slightly from 94.3 to 94.5. This data rates the current business climate and expectations of the next 6 months. The number has been declining throughout the year. The current assessment is expected to decline to 97.0 from the previous 97.3. As the name suggests, this number rates the current conditions without considering future expectations. The business expectations data is expected to improve slightly from 91.3 to 91.8. Meanwhile, from the United States, the market will receive consumer confidence data from the conference board.
The EUR/USD pair was unchanged in overnight trading. The pair is now trading at 1.0988, which is along the 28-day and 14-day moving averages. This price is slightly lower than the 23.6% Fibonacci Retracement level. With the pair consolidating, there is a possibility that it could break out in either direction. An upward breakout will likely see it test the 23.6% Fibonacci level of 1.1000 while a downward breakout will see the pair test the support of 1.0965.
The NZD/USD pair rose slightly during the Asian session as traders waited for the interest rates decision from New Zealand. The pair is now trading at 0.6295, which is higher than Friday’s low of 0.6253. On the hourly chart, this price is slightly lower than the 23.6% Fibonacci Retracement level. The price is also slightly higher than the 28-day and 14-day moving averages while the RSI has been moving higher. The pair could continue moving higher in the run-up to the RBNZ decision.
The XAU/USD pair declined slightly in overnight trading and is currently trading at 1521.25. This is slightly lower than yesterday’s high of 1526.65. On the hourly chart, this price is along the 50% Fibonacci Retracement level. It is also higher than the monthly low of 1483.00. The price is now along the 14-day moving averages and above the 28-day EMA. The pair could remain unchanged today because there is no major economic data expected today.