NZD/USD: "bulls" consolidated the advantage in the pair
The New Zealand currency shows a slight strengthening within the framework of a confident "bullish" signal formed last Thursday. The NZD/USD instrument is trying to gain a foothold above the level of 0.6300, enlisting support from weak data released in the US.
According to statistics, on the eve of CCI (consumer confidence index) from the University of Michigan updated a record low to 50.0 points from the previous 50.2 points, contrary to economists' expectations of maintaining positions within the previous level. Market participants focused their attention around the statistics announced for today on May orders for long-lasting goods. According to preliminary forecasts, the indicator will be reduced to 0.1% from 0.5%, not without a reason for a strong reduction in the number of purchases of motor transport. Updated data on the level of US GDP for Q1 of the current year is expected to be released this week. According to economists, the indicator will remain at the same level of -1.5%.
- Resistance levels: 0.6350, 0.6400, 0.6450, 0.6500.
- Support levels: 0.6300, 0.6244, 0.6200, 0.6156.
USD/CAD: Canadian dollar under pressure due to record inflation
The US currency is trading slightly lower as part of a strong "bearish" momentum that has come since the end of the previous week. The USD/CAD instrument is in the area of 1.2880 with the prospect of a decline, having updated the local minimum from June 16.
According to a report published last week by Statistics Canada, the fastest strengthening of national inflation in the last 40 years was recorded. Economists confirm an increase in food prices by an average of 9.7% and fuel. Thus, the price of gasoline increased by 12% on a monthly basis, and increased by 48% year-on-year due to an increase in the price of crude oil, which gave a signal for all petroleum products to strengthen to 95.1%, against the background of the escalation of Russia's military invasion of Ukraine and total disruptions in the supply chain. Without taking into account fuel, the inflation rate for May was adjusted from 5.8% to the current 6.3%. According to the results of a study conducted by the Angus Reid Institute, economists noted a drop in the level of prosperity among citizens: out of 5 thousand respondents, about half confirmed a significant decrease in well-being compared to the same period last year and the inability to make rent payments for housing.
- Resistance levels: 1.2900, 1.2950, 1.3000, 1.3050.
- Support levels: 1.2850, 1.2800, 1.2750, 1.2700.
USD/JPY: the instrument is waiting for new signals
Last week ended for the USD/JPY pair without a single dynamics of the movement of quotations, if in the first half there was a strengthening to 137.59, then by its end the success was lost, and the positions returned to the level of 135.00.
Investors took a wait-and-see attitude due to market uncertainty amid rising prices for the vast majority of goods, which was confirmed by an official source of the Japanese authorities, which put the yen under pressure. The inflation indicator in May exceeded the target mark of the national regulator for the second month in a row, but the Central Bank of Japan is in no hurry to use tools to combat inflation. As the result of a survey of department officials shows, the rising cost of prices is nothing more than a temporary phenomenon. According to officials, in the present it is necessary to maintain monetary policy, which will allow to further increase the average level of wages, which will allow inflation to return to the target. However, this decision leaves the Japanese yen further under pressure.
- Resistance levels: 137.50, 140.62, 143.75.
- Support levels: 133.50, 131.25, 128.12.
Gold Prices
Within the framework of Asian trading, the value of the precious metal is trying to gain a foothold in growth, being at the level of 1835.00, for an upward breakdown. The asset started the trading week with a moderate gap on an increasing basis, which gives a signal about the mood of market participants who want to save their own capital in a safe haven asset. Positive signals to the asset are given by the news background about the likely embargo on gold imports from the Russian Federation.
So, the chairman of the G7 countries, within the framework of the congress, which continues at the present time on the territory of the Bavarian Alps, has previously agreed on an agreement to ban the supply of Russian precious metal, which official sources from the US Treasury will have to announce in the coming days. The agreed measures continue the sanctions policy of Western countries against profitable sectors of the Russian economy in response to the large-scale military invasion of Ukraine. It was on gold that the Central Bank of Russia made a bet after the freezing of foreign currency assets in the amount of 300 billion. dollars held by various international financial institutions.
- Resistance levels: 1843.37, 1857.27, 1869.49, 1878.84.
- Support levels: 1828.22, 1816.62, 1800.00, 1775.00.