UK labour market report on the agenda today
The week kicked off with delta variant concerns and that is continuing today as NZ records its first community case since February in Auckland.
That has kicked off a fresh bout of weakness in the kiwi, with the aussie dragged lower as well after the RBA minutes suggested a possible delay to the taper timeline.
The former is trading down 1% against the dollar with sellers eyeing the 0.6900 level and the July low at 0.6881. Meanwhile, the latter has seen AUD/JPY tumble to test key support at 79.84 – a break below which brings in levels seen in January to early February.
Elsewhere, the pound is also a touch softer on the day as cable continues to see more of a push and pull. The 200-hour moving average capped the upside move yesterday as sellers now regain near-term control and look towards testing 1.3800.
Looking at risk sentiment overall, things are leaning towards the softer side again with US futures marked lower. That said, as seen yesterday, the dip buying can be relentless with the S&P 500 and Dow carving out record highs.
Today’s US retail sales data will be a key barometer for how things play out on the day (and perhaps on the week) and if the market will address those concerns more seriously.
0600 GMT – UK July jobless claims change, claimant count rate
0600 GMT – UK June ILO unemployment rate, employment change
0600 GMT – UK June average weekly earnings
0900 GMT – Eurozone June construction output data
0900 GMT – Eurozone Q2 GDP second estimate
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.