Market Roundup
• US Nonfarm Productivity (QoQ) (Q2) 2.3% ,3.5% forecast, 5.4% previous
• US Unit Labor Costs (QoQ) (Q2) 1.0%, 1.1% forecast, 1.7% previous
• US Redbook (YoY) 16.2% ,17.2% previous
Looking Ahead –Economic Data (GMT)
•00:30 Australia Aug Westpac Consumer Sentiment 1.5% previous
•04:00 Australia HIA New Home Sales (MoM) 14.8% previous
•06:00 Japan Machine Tool Orders (YoY) 96.6% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currencies summaries
Fxbeat
EUR/USD: The euro dipped against dollar on Tuesday after German investor morale fell further on fears over fourth COVID-19 wave. Investor sentiment in Germany deteriorated for the third month in a row in August on fears that rising COVID-19 infections and a fourth wave of coronavirus cases could hold back the recovery in Europe's largest economy, a survey showed on Tuesday. The ZEW economic research institute said its survey of investors' economic sentiment fell to 40.4 from 63.3 points in the previous month. The euro hit a four-month low against the dollar, with the pair changing hands at $1.1726.Immediate resistance can be seen at 1.1730(38.2%fib), an upside break can trigger rise towards 1.1776(50%fib).On the downside, immediate support is seen at 1.1701 (Lower BB), a break below could take the pair towards 1.1684(23.6%fib)
GBP/USD: Sterling dipped on Tuesday as dollar gained as upbeat U.S. jobs data bolstered expectations that the Federal Reserve could soon start tapering its massive bond-buying programme. U.S. job openings, a measure of labour demand, hit a record high in June while hiring also increased, the Labor Department said in a monthly survey on Monday. Market participants now turn their focus to U.S. consumer inflation data due on Wednesday, which could provide more cues on the timing of the Fed's bond-purchase taper. Immediate resistance can be seen at 1.3861(38.2%fib),an upside break can trigger rise towards 1.3894(Aug 9th high).On the downside, immediate support is seen at 1.3824(30DMA), a break below could take the pair towards 1.3775(50%fib).
USD/CAD: The Canadian dollar strengthened against the greenback on Tuesday as oil clawed back some recent losses and the U.S. Senate passed a $1 trillion infrastructure package, with the currency recovering from its weakest level in nearly two weeks. Crude settled 2.7% higher at $68.29 a barrel, after hitting its lowest level in two-and-a-half months on Monday, while the Canadian dollar was trading 0.4% higher at 1.2528 to the greenback. Investors awaited the release of U.S. inflation numbers on Wednesday for further indications of when the Federal Reserve may start to withdraw its stimulus for the economy. Immediate resistance can be seen at 1.2572(50%fib), an upside break can trigger rise towards 1.2605(28th July high).On the downside, immediate support is seen at 1.2508 (50%fib), a break below could take the pair towards 1.2445 (61.8%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Tuesday as anticipation of earlier tapering by the Federal Reserve drove the U.S. dollar higher. Markets were looking ahead to U.S. inflation numbers on Wednesday for further indications of when the world's largest economy may start to withdraw stimulus after taper talk was amped up by strong jobs data. The dollar index strengthened on Friday and Monday, and reached an 18-day high of 93.102 on Tuesday. Strong resistance can be seen at 110.61(23.6%fib), an upside break can trigger rise towards 110.93(Higher BB).On the downside, immediate support is seen at 110.30(38.2%fib), a break below could take the pair towards 110.15(50%fib).
Equities Recap
European stocks hit record highs on Tuesday, extending gains for a seventh straight session as investors took comfort from strong earnings reports and economic recovery prospects despite concerns about the Delta variant of COVID-19.
UK's benchmark FTSE 100 closed up by 0.40 percent, Germany's Dax ended up by 0.16 percent, France’s CAC finished the day up by 0.10 percent.
Wall Street's main indexes edged higher at open on Tuesday with investors awaiting fresh progress toward the passing of a much-anticipated infrastructure bill.
Dow Jones closed up by 0.46% percent, S&P 500 closed up by 0.10% percent, Nasdaq settled down by 0.49% percent.
Treasuries Recap
U.S. Treasury yields hit their highest levels since mid-July on Tuesday, rising on the long end of the curve after the U.S. Senate passed a massive infrastructure bill, while a three-year note auction produced strong results.
The benchmark 10-year Treasury yield reached 1.349%, its highest since July 15, and last was up 3 basis points at 1.3473%. The 30-year bond yield, which rose as high as 1.992%, rose 2.9 basis points to 1.9895%.
Commodities Recap
Gold edged up on Tuesday, pausing its steep sell-off on some lingering doubts over the economic impact of the new Delta COVID-19 variant, though a rally in the dollar and bond yields continued to grip the market.
Spot gold rose 0.1% to $1,730.93 per ounce by 1:37 p.m. EDT (1737 GMT), while U.S. gold futures settled up 0.3% at $1,731.70.
Oil prices rose more than 2% on Tuesday, rebounding from recent losses on signs of rising fuel demand in the United States despite a surge in COVID-19 cases.
Brent crude rose $1.59, or 2.3%, to settle at $70.63 a barrel and U.S. oil climbed $1.81, or 2.7%, to end the session at $68.29 a barrel.
