AUD/USD: The asset is trading at 0.6900.
The Australian currency is trading corrective growth, restoring the lost positions of the last days. The AUD/USD currency pair again reached the level of 0.6900 within the framework of an uptrend, having secured support for strengthening the corrective growth of activity from the US dollar. Bidders hurriedly fix profitable deals, at the same time pay attention to weak publications from the United States. Thus, the data published on the eve from S&P Global confirmed the drawdown of the PMI positions of the US services segment to 51.6 points from the previous 53.4 points, contrary to experts' expectations of growth to 53.5 points. The manufacturing sector showed a sharp decline to 52.4 points from the previous 57.0, which is much lower than forecasts of a reduction to 56.0 points. The main PMI showed a decrease from 53.6 to 51.2 points while waiting for the level of 53.7 points.
- Resistance levels: 0.6950, 0.7000, 0.7050, 0.7100.
- Support levels: 0.6900, 0.6849, 0.6800, 0.6750.
USD/CHF: US dollar remains under negative factors
The US currency is trading in corrective growth, making attempts to restore positions, having suffered moderate losses over the past week. The USD/CHF trading instrument is trading at 0.9600, developing upward dynamics, being at the local minimum of June 3. The US currency continues to remain under pressure due to the release of weak macroeconomic indicators from the US on the eve, which showed a decline in the PMI of the manufacturing and services sectors, exceeding economists' forecasts. At the same time, the indicator for initial applications for unemployment benefits for the last 7 days on June 17 decreased to 229 thousand from the previous 231 thousand, only slightly exceeding the expectations of 227 thousand.
- Resistance levels: 0.9618, 0.9700, 0.9762, 0.9847.
- Support levels: 0.9540, 0.9459, 0.9400, 0.9300.
Oil Market Overview
During the Asian trading session, the price of WTI grade oil showed multidirectional dynamics, holding at 104.00, approaching the local minimum on May 11.
The trading asset is trading under pressure due to the comments of the head of the US Federal Reserve, who spoke before the Senate Banking Committee, in which he confirmed the continuation of the hawks' policy in further regulating monetary policy as part of the fight against record inflation. A number of economists fear that drastic tightening steps could lead the national economy into recession. Recall that during the June summit, the regulator decided to increase the key indicator by 75 basis points, which gives room for analysts to predict how the rate will change based on the results of the July meeting. A similar situation is observed in other countries – for example, the Central Bank of England decided to increase the rate for the fifth time in a row during the last meeting.
- Resistance levels: 105.00, 107.67, 110.00, 113.13.
- Support levels: 103.00, 101.09, 100.00, 98.00.
Gold Prices
The precious metal quotes are trading in consolidation, having turned around from the downward dynamics earlier, within which the support levels from June 16 were updated. The asset is at the level of 1825.00. having secured support due to technical factors. The instrument received negative dynamics due to the comments of the head of the American regulator Jerome Powell, who recognized the likelihood of a recession in the national economy. At the same time, the official confirmed the commitment of the department to tough measures, under which the interest rate will continue to rise until an acceptable level of inflation stabilizes. Statements by J. Powell was also touched upon the topic of stagflation, which was actively discussed on trading platforms the day before. According to the head of the regulator, such risks do persist and it is not worth denying them completely, however, their probability under the current circumstances is very restrained. Gold gained support due to the release of weak macroeconomic statistics on the eve of the US PMI for June. The current indicators are fixed at more negative levels than experts expected, which led to an increase in the decline in the pace of economic development in the country.
- Resistance levels: 1843.37, 1857.27, 1869.49, 1878.84.
- Support levels: 1823.09, 1800.00, 1775.00, 1752.87.