EUR/USD: Eurozone data constrains asset growth
The EUR/USD instrument shows a correction, being at the level of 1.0178, but the prospect of further strengthening calls into question the negative publications that put pressure on the currency pair.
Germany continues to plunge into economic crisis. Thus, the sales volume indicator, which turned to negative dynamics in June, reached a decrease of -1.6%, against the May strengthening by 1.2%, which confirms the development of a negative trend. The annual level has already sunk by 8.8%, showing an absolute anti-record for the entire time of fixation. The general trend of the EU remains negative: the PMI (business activity index) of industrialists in July amounted to 49.8 points, against 52.1 points last month, the minimum mark for the spring of 2020.
- Resistance levels: 1.0262, 1.0410.
- Support levels: 1.0115, 0.9951.
NZD/USD: currency pair maintains negative dynamics
The New Zealand currency continues to move under pressure, making an attempt to develop a correction, the impulse to which it received the day before. The NZD/USD instrument moved away from the local maximum on June 21 due to the peak of tension between the United States and China against the background of the arrival of American official Nancy Pelosi in Taiwan.
Macroeconomic indicators put significant pressure on the movement of the New Zealand dollar. Thus, the national labor market maintained its previous indicators, which was the fixation of zero dynamics, contrary to economists' expectations of an increase of 0.4%. Moreover, the part of the working-age population among the general indicator in the same period decreased to 70.8% from 70.9%, and the number of unemployed increased to 3.3% from the previous 3.2%, despite experts' expectations of a decrease to 3.1%. The average wage increased by 1.3% in the quarterly indicator, which helped the annual rate reach 3.4%, exceeding preliminary expectations of 1.1% and 3.3%, respectively.
- Resistance levels: 0.6300, 0.6350, 0.6400, 0.6450.
- Support levels: 0.6200, 0.6146, 0.6079, 0.6040.
Silver Prices
During the Asian trading session, silver quotes demonstrate a multidirectional movement, testing the 20.00 mark.
The asset is attempting to recover losses incurred earlier, which pushed it away from the local maximum for June 30. The downward trend is due to the liquidation of speculators' deals, which were increased during the afternoon session due to the working visit to Taiwan by the Speaker of the United States House of Representatives Nancy Pelosi, as part of an Asian tour. Panic among traders reached a peak when the probability of a military clash in the region became maximum, but no obstacles were provided to the special board. Without a doubt, such a precedent has marked a new stage of tension in US-Chinese relations: official Beijing has already expressed a note of protest at Nancy Pelosi's presence in Taiwan and has begun conducting unscheduled large-scale exercises, effectively taking the island under blockade.
- Resistance levels: 20.00, 20.48, 20.86, 21.40.
- Support levels: 19.74, 19.50, 19.00, 18.71.
Oil Market Overview
The cost of North American light WTI grade oil is developing sideways dynamics, testing the 93.77 mark.
At 12:00 (GMT+2), investors are waiting for the start of the meeting of ministers of the OPEC+ alliance member countries, announced the day before in an online format, within which a report will be presented with options for further developments in the coming months. After reviewing the data, the Ministerial Monitoring Committee will make a recommendation on the optimal level of raw material production for the next month. Market participants are closely monitoring the upcoming meeting for a number of reasons. Firstly, the new Secretary General Haysam al-Gais, who assumed the powers of his predecessor Mohammed Barkindo from August 1, will be introduced to the summit. Secondly, the world community wants to know the terms of obligations under the OPEC agreement+: the cartel members intend to return to pre-crisis indicators of "black gold" production by September, within which the production level gradually increased in daily terms to 432 thousand barrels in June and to 648 thousand barrels in July. Meanwhile, the OPEC+ Technical Committee says that according to the previously approved schedule, the backlog has reached 2.84 million barrels per day, which may provoke the meeting participants to take more aggressive measures on the outcome of the negotiations.
- Support levels: 91.68, 84.10.
- Resistance levels: 97.57, 106.74.