The U.S. dollar had a neutral trade yesterday as U.S. markets closed as the country celebrated Independence Day. While the Aussie dollar retreated from the day’s high after the Reserve Bank held rates steady at its latest policy-setting meeting.
The Reserve Bank of Australia kept its cash rate at an 11-year high of 4.10%, saying it needed more time to evaluate the effects of the 400 basis point increases since May of last year. This caused the AUD/USD to rise by 0.34% to 0.6698.
After the Fed’s favoured inflation indicator showed lower-than-expected readings for May, gold prices have experienced some reprieve over the last two sessions. However, a rate increase by the central bank is still anticipated for July.
Gold Prices continued their recovery rally for the second day and settled at 58409 compared to the previous day’s close of 58227. Silver prices settled at 70542 compared to the previous day’s close of 70289.
Copper prices remained in a thin range and settled at 716.85 almost flat.
Crude oil recovered by 1.69% as markets weighed August supply cuts by top exporters Saudi Arabia and Russia against a weak global economic outlook.MCX crude oil settled at 5850 up by 1.69%.
Economic data and events to watch
China
At 7.15am – Caixin Services PMI. The forecast is 56.2 from 57.10.
Above data could have a negative impact on base metals.
Eurozone
At 12.15 pm – French Industrial Production m/m. Data is forecast to have a contraction of 0.3% from 0.8%.
At 12.45 pm – Spanish Services PMI. Data’s forecast is 55.8 lower from 56.70.
At 1.15 pm – Italian Services PMI. Data is forecast to have a contraction of 53.0 from 54.0.
At 1.20 pm – French Final Services PMI. Data is forecast to have a contraction of 48.0 from 48.0.
At 1.25 pm – German Final Services PMI. Data is forecast to remain unchanged at 54.10.
At 1.30 pm- Final Services PMI. Data is foreseen unchanged at 52.40.
At 2.00 pm – Final Services PMI. Data is foreseen unchanged at 53.70.
ALL the above data could have a volatile impact on the Euro.
U.S.
At 7.30 pm – Factory Orders m/m. Data is foreseen at 0.7% higher than the 0.4% previous reading
Tentative – IBD/TIPP Economic Optimism. Data is foreseen at 45.3 higher than 41.7 previous
At 11.30 pm – FOMC Meeting Minutes
Above data and events will have a volatile impact on the dollar.
All day – OPEC meeting
On Wednesday and Thursday, chief executives from the biggest international oil companies are scheduled to meet with energy ministers from the OPEC states, which could provide more clues to the oil markets.