Asian Recap: NZD Strengthens After Positive Jobs Report, While USD Remains Weak Following Recent Dovish Fed Comments
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MARKET RECAP
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1️⃣ Asian stock markets closed higher after China reported an increase in the services sector.

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FOREX RECAP
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1️⃣ US dollar remained pressured as Powell reiterated that the labor market is still not fully strong, and the recent surge in inflation is seen to be temporary. He also stressed that the Federal Reserve is still a long way from considering raising its interest rates. In addition, The ISM survey for July showed a slight decline in the manufacturing sector.

2️⃣ AUD soared as RBA has decided to continue its bond-buying program at AUD 5 billion a week until this September and will reduce its buying program to AUD 4 billion a week until at least mid-November 2021.

3️⃣ The NZD surged after employment reports in New Zealand showed the unemployment rate declined to 4.0% from 4.6% in the previous period, and better than the market forecast to drop to 4.5%. This employment report has boosted the confidence of 3 major banks in New Zealand (ANZ, ASB, BNZ) about the RBNZ rate hike to be announced in the August meeting.

4️⃣ A sharp drop in crude oil prices weighed on the CAD.

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COMMODITIES RECAP
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1️⃣ WTI crude oil price traded around the $70 per barrel, amid concerns of the spread of the COVID-19 variant of the Delta.

2️⃣ Gold traded around $ 1,813, amid a weak dollar.

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Economic Data Focus On Today
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1️⃣ New Zealand Employment Data for Q2 (06:45 Malaysia Time) — Bullish Prediction — In the second quarter, PMIs in New Zealand were generally higher.

2️⃣ Australian Final Retail Sales for June (09:30 Malaysia Time) — Bearish Prediction — Preliminary readings showed a decline.

3️⃣ German Final Services PMI for July (15:55 Malaysia Time) — No Prediction — No prediction on revisions data.

4️⃣ Eurozone Final Services PMI for July (16:00 Malaysia Time) — No Prediction — No prediction on revisions data.

5️⃣ UK Final Services PMI for July (16:30 Malaysia Time) — No Prediction — No prediction on revisions data.

6️⃣ Eurozone Retail Sales for June (17:00 Malaysia Time) — Bullish Prediction — The Euro 2020 Football Championship in June is expected to boost the retail sales sector in Europe.

7️⃣ US ADP Employment Change for July (20:15 Malaysia Time) — No Prediction — No prediction on ADP data, but can be an indicator ahead of NFP.

8️⃣ US ISM Services PMI for July (22:00 Malaysia Time) — Bearish Prediction — Expected to decline, following a dropped in manufacturing sector.

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