Daily Forex Analysis - 7th May 2021

USD Overview (07 May 2021)

Yesterday, USD weakened against most major currencies except GBP.

The Unemployment Claims data (Actual: 498K, Forecast: 540K, Previous: 590K revised 553K) released yesterday indicated a further decline in the number of people claiming unemployment benefits last week.

The Nonfarm Payrolls employment report will be released later at 2030 (SGT).

- Average Hourly Earnings m/m (Forecast: 0.0%, Previous: -0.1%)

- Non-Farm Employment Change (Forecast: 990K, Previous: 916K)

- Unemployment Rate (Forecast: 5.8%, Previous: 6.0%)

NZD/USD Outlook (07 May 2021)

Overall, NZD/USD is trending upwards. Recently, NZD/USD bounced up from the key level of 0.72.

The New Zealand Inflation Expectations q/q data (Forecast: NA, Previous: 1.89%) will be released later at 1100 (SGT).

NZD/USDs next support zone is at 0.71000 and the next resistance zone is at 0.72850.

Look for short-term buying opportunities of NZD/USD up until the release of the U.S. Nonfarm Payrolls employment report later at 2030 (SGT).

AUD/USD Outlook (07 May 2021)

Overall, AUD/USD is trending upwards. Recently, AUD/USD tested but failed to breaks below the key level of 0.77.

Yesterday, tensions between Australia and China escalated after the latter suspended an economic dialogue with the former. The tit-for-tat move by China led to a temporary weakening of the Australian dollar.

The Australian Retail Sales m/m data (Forecast: TBA, Previous: 1.4%) will be released next Monday at 0930 (SGT).

AUD/USDs next support zone is at 0.75500 and the next resistance zone is at 0.78000.

Look for short-term buying opportunities of AUD/USD up until the release of the U.S. Nonfarm Payrolls employment report later at 2030 (SGT).

USD/JPY Outlook (07 May 2021)

Overall, USD/JPY is ranging across. Recently, USD/JPY bounced up from the key level of 109.

USD/JPYs next support zone is at 108.500 and the next resistance zone is at 110.800.

Look for short-term buying opportunities of USD/JPY up until the release of the U.S. Nonfarm Payrolls employment report later at 2030 (SGT).

EUR/USD Outlook (07 May 2021)

Overall, EUR/USD is trending upwards. Recently, EUR/USD bounced off the support zone of 1.19700.

The eurozone Retail Sales m/m data (Actual: 2.7%, Forecast: 1.5%, Previous: 4.2% revised from 3.0%) released yesterday indicated a slowdown in consumer spending in March.

European Central Bank President Lagarde will be speaking later at 1800 (SGT). During this time, there may be volatility in EUR.

EUR/USDs next support zone is at 1.19700 and the next resistance zone is at 1.21500.

Look for short-term buying opportunities of EUR/USD up until the release of the U.S. Nonfarm Payrolls employment report later at 2030 (SGT).

GBP/USD Outlook (07 May 2021)

Overall, GBP/USD is ranging across.

The Bank of England (BoE) held its monetary policy unchanged yesterday during its meeting. Although one member of the committee voted for a cut in government bond purchases, the central banks governor highlighted that the BoE has not concluded on reducing quantitative easing. The central bank also expects growth to recover to pre-COVID levels this year while inflation is expected to rise above 2% temporarily towards the end of 2021 due to rising energy prices.

The UK Construction PMI data (Forecast: 62.0, Previous: 61.7) will be released later at 1630 (SGT).

Currently, GBP/USD is testing to break above the key level of 1.39. Its next support zone is at 1.38000 and the next resistance zone is at 1.40000.

If GBP/USD breaks above the key level of 1.39, look for short-term buying opportunities up until the release of the U.S. Nonfarm Payrolls employment report later at 2030 (SGT).

USD/CAD Outlook (07 May 2021)

Overall, USD/CAD is trending downwards. Recently, USD/CAD broke the support zone of 1.22400.

The Canadian employment data will be released later at 2030 (SGT).

- Employment Change (Forecast: -160.5K, Previous: 303.1K)

- Unemployment Rate (Forecast: 7.8%, Previous: 7.5%)

The Canadian Ivey PMI data (Forecast: 67.0, Previous: 72.9) will be released later at 2200 (SGT).

USD/CADs next support zone is at 1.21000 and the next resistance zone is at 1.22400.

Look for short-term selling opportunities of USD/CAD up until the release of the Canadian employment data at 2030 (SGT).

GBP/JPY Outlook (07 May 2021)

Overall, GBP/JPY is ranging across. Recently, GBP/JPY bounced down from the key level of 152.

The Bank of England (BoE) held its monetary policy unchanged yesterday during its meeting. Although one member of the committee voted for a cut in government bond purchases, the central banks governor highlighted that the BoE has not concluded on reducing quantitative easing. The central bank also expects growth to recover to pre-COVID levels this year while inflation is expected to rise above 2% temporarily towards the end of 2021 due to rising energy prices.

The UK Construction PMI data (Forecast: 62.0, Previous: 61.7) will be released later at 1630 (SGT).

Currently, GBP/JPY is moving towards the key level of 152. Its next support zone is at 151.000 and the next resistance zone is at 153.000.

Look for buying opportunities of GBP/JPY if it breaks above the key level of 152.

EUR/JPY Outlook (07 May 2021)

Overall, EUR/JPY is trending upwards.

The eurozone Retail Sales m/m data (Actual: 2.7%, Forecast: 1.5%, Previous: 4.2% revised from 3.0%) released yesterday indicated a slowdown in consumer spending in March.

European Central Bank President Lagarde will be speaking later at 1800 (SGT). During this time, there may be volatility in EUR.

EUR/JPYs next support zone is at 130.800 and the next resistance zone is at 132.800.

Look for short-term buying opportunities of EUR/JPY.