The Forex Market Insight Report shows charts on different major currencies and commodities, with brief commentaries on how new data releases and news cause movements in the market.

Headline:

  • Risk rallies overnight following in-line China data and US retail sales
  • Aussie and Euro see small gains, but pound suffers after UK CPI
  • Oil, copper and other key commodities push higher
  • In equity markets, the FTSE closed up 0.5%, while Dow gained 1.0%, the S&P 500 was up 1.3%, while the
  • Nasdaq was 1.5% higher
  • RBA Governor Glenn Stevens speaks at 12.00pm today.

AUD/USD
The AUD/USD is currently consolidating in an ever-broadening range and this is usually seen as a sign of market indecision. Today’s price action is likely to be driven by the RBA governor’s speech at 12 noon (AEST). The market continues to expect a rate rise in July or August so any suggestion that this is no longer on the cards will be extremely bearish for the Aussie

XAU/USD
Gold found support just above 1510 overnight and has now pushed back to resistance at 1526. A break of 1526 will be bullish and has the potential to target 1555.

EUR/USD
The Euro has reversed from resistance at 1.4500 and now appears to be heading back to support at 1.4320. That said, there is a small layer of Fibonacci support at current levels (at 1.4400) so traders are more cautious in the near term. A break below 1.4400 sets up a move to 1.4320.

GBP/USD
The GBP/USD continues to trade just below resistance and the market is likely to be taking short positions in expectation that we will see a move back to support at 1.6200. That said, the broad flag pattern we can see is actually a bullish pattern so there is an expectation that we will see a break higher at some point in the future.

USD/JPY
Resistance at 80.60 has continues to be used as a selling opportunity for traders and we have recently seen the USDJPY head lower from this level. For now, the trading range remains intact, with resistance seen at 80.60/70 and support seen at 80.10.

AUD/JPY
AUD/JPY continues to trade in its bearish descending triangle formation and has most recently move back toward the top of the range. The pair appears to be heading lower from 86.30 and traders will now be looking for a move back toward 84.30. Key resistance is seen 86.70 and stops are seen above this level.
OIL
Oil surged higher over the last 24 hours after finding support a 96.50. The positive impact from Chinese and US numbers also helped the bullish cause. However, oil is now rolling over at resistance at 99.60 to 100 and the market’s expectations is that we might see a move back toward initial support 98.00. A break of 98.00 could see a move to 96.50.
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