Daily Forex Analysis - 6th July 2021

USD Overview (06 July 2021)

Yesterday, USD strengthened against most major currencies except GBP, AUD and JPY.

The ISM Services PMI data (Forecast: 63.4, Previous: 64.0) will be released later at 2200 (GMT+8).

NZD/USD Outlook (06 July 2021)

Overall, NZD/USD is trending downwards.

NZD/USDs next support zone is at 0.69500 and the next resistance zone is at 0.71000.

Look for short-term buying opportunities of NZD/USD.

AUD/USD Outlook (06 July 2021)

Overall, AUD/USD is trending downwards. Recently, AUD/USD broke the resistance zone of 0.75000.

The Australian Retail Sales m/m data (Actual: 0.4%, Forecast: 0.1%, Previous: 0.1%) released yesterday indicated a higher than forecasted increase in consumer spending in May.

Also, the Australian Building Approvals m/m (Actual: -7.1%, Forecast: -5.0%, Previous: -5.7% revised from -8.6%) released indicated a stronger than expected decline in the number of issued building permits May.

The Reserve Bank of Australia (RBA) will be announcing their monetary policy decision later at 1230 (GMT+8). The central bank is expected to hold interest rate unchanged at 0.10%. Also, the RBA is expected to provide an update on their quantitative easing (QE) programme as it will be ending in September. With the recent economic recovery in Australia, it is likely that the central bank will be adopting a smaller QE programme while having the flexibility to review it as and when necessary. The RBA may also warn about the recent COVID Delta variant that has led to the lockdown of several parts of Australia, highlighting the need to adjust QE based on how the situation evolves.

Also, the RBA will be holding a press conference later at 1400 (GMT+8). During this time, volatility is expected in AUD.

AUD/USDs next support zone is at 0.75000 and the next resistance zone is at 0.76500.

Look for short-term buying opportunities of AUD/USD if the RBA delivers a hawkish tone in its new QE plans.

USD/JPY Outlook (06 July 2021)

Overall, USD/JPY is trending upwards. Recently, USD/JPY trended into the support zone of 110.800.

Currently, USD/JPY is testing the support zone of 110.800 and the next resistance zone is at 112.000.

Look for buying opportunities of USD/JPY if it bounces off the support zone of 110.800.

EUR/USD Outlook (06 July 2021)

Overall, EUR/USD is trending downwards.

The eurozone and German ZEW Economic Sentiment data will be released later at 1700 (GMT+8).

- ZEW Economic Sentiment (Forecast: 79.0, Previous: 81.3)

- German ZEW Economic Sentiment (Forecast: 75.0, Previous: 79.8)

Also at the same time, the eurozone Retail Sales m/m data (Forecast: 4.3%, Previous: -3.1%) will be released.

Currently, EUR/USD is testing the support zone of 1.18500 and the next resistance zone is at 1.20000.

Look for short-term selling opportunities of EUR/USD if it breaks the support zone of 1.18500.

GBP/USD Outlook (06 July 2021)

Overall, GBP/USD is trending downwards. Recently, GBP/USD broke the resistance zone of 1.38000.

The UK Construction PMI data (Forecast: 63.9, Previous: 64.2) will be released later at 1630 (GMT+8).

GBP/USDs next support zone is at 1.38000 and the next resistance zone is at 1.40000.

Look for short-term buying opportunities of GBP/USD.

USD/CAD Outlook (06 July 2021)

Overall, USD/CAD is trending upwards.

It was reported yesterday that the delayed OPEC+ meeting has been cancelled, implying that no deal on Augusts oil production quota has been agreed. As a result, this led to the strengthening of oil prices which translated to the strengthening of CAD.

USD/CADs next support zone is at 1.22600 and the next resistance zone is at 1.24800.

Look for short-term selling opportunities of USD/CAD.

GBP/JPY Outlook (06 July 2021)

Overall, GBP/JPY is ranging across.

The UK Construction PMI data (Forecast: 63.9, Previous: 64.2) will be released later at 1630 (GMT+8).

Currently, GBP/JPY is testing the resistance zone of 153.800 and the next support zone is at 151.000.

Look for short-term selling opportunities of GBP/JPY if it bounces off the resistance zone of 153.800.

EUR/JPY Outlook (06 July 2021)

Overall, EUR/JPY is ranging across. Recently, EUR/JPY bounced off the resistance zone of 132.000.

The eurozone and German ZEW Economic Sentiment data will be released later at 1700 (GMT+8).

- ZEW Economic Sentiment (Forecast: 79.0, Previous: 81.3)

- German ZEW Economic Sentiment (Forecast: 75.0, Previous: 79.8)

Also at the same time, the eurozone Retail Sales m/m data (Forecast: 4.3%, Previous: -3.1%) will be released.

EUR/JPYs next support zone is at 130.000 and the next resistance zone is at 132.000.

Look for selling opportunities of EUR/JPY.