Posted at 06 August 2025 / Categories Market Roundups
Market Roundup
•New Zealand Employment Change (QoQ) (Q2): -0.1%, -0.1% forecast, 0.1% previous
•New Zealand Labor Cost Index (YoY) (Q2): 2.2%, 2.3% forecast, 2.5% previous
•New Zealand Labor Cost Index (QoQ) (Q2): 0.6%, 0.5% forecast, 0.4% previous
•New Zealand Participation Rate (Q2): 70.50%, 70.70% forecast, 70.80% previous
•New Zealand Unemployment Rate (Q2): 5.2%, 5.3% forecast, 5.1% previous
•Australia AIG Construction Index (Jul): -1.3, -14.9 previous
•Australia AIG Manufacturing Index (Jul): -23.9, -29.3 previous
•Japan Average Cash Earnings (YoY): 2.5%, 3.2% forecast, 1.4% previous
•Japan Overall Wage Income of Employees (Jun): 2.5%, 1.4% previous
•Japan Overtime Pay (YoY) (Jun): 0.90%, 1.40% previous
Looking Ahead Economic Data (GMT)
•08:30 UK S&P Global Construction PMI (Jul) 48.9 forecast, 48.8 previous
•09:00 EU Retail Sales (YoY) (Jun) 2.6% forecast, 1.8% previous
•09:00 EU Retail Sales (MoM) (Jun) 0.4% forecast, -0.7% previous
•10:00 Portuguese Unemployment Rate (Q2) 6.6% previous
Looking Ahead Events and Other Releases(GMT
• No Events Ahead
Currency Summaries
EUR/USD : The euro edged higher on Wednesday as dollar struggled to gain ground amid growing Federal Reserve rate cut expectations. investors choosing to stay on the sidelines after another round of weak data and as U.S. President Donald Trump prepared to fill a coming vacancy on the Federal Reserve's Board of Governors. Trump said on Tuesday he will decide on a nominee by the end of the week and had separately narrowed the possible replacements for Fed Chair Jerome Powell to a short list of four.Data out the same day also showed the U.S. services sector activity unexpectedly flatlined in July even as input costs climbed by the most in nearly three years. The euro ticked up 0.1% to $1.1580.Immediate resistance can be seen at 1.1609(38.2%fib ), an upside break can trigger rise towards 1.1652(SMA 20).On the downside, immediate support is seen at 1.1480 (50%fib), a break below could take the pair towards 1.1353(Lower BB).
GBP/USD: Sterling held steady on Wednesday as investors awaited policy guidance from the Bank of England, which is widely expected to lower its benchmark rate to 4% from 4.25% on Thursday. Despite June’s inflation nearing twice the BoE’s 2% target, markets anticipate another rate cut before year-end, with traders pricing in over a 90% chance of easing this week and 86 basis points of cuts by December 2026.Adding to the pressure, UK government borrowing exceeded expectations in June, fueling speculation that Finance Minister Rachel Reeves may introduce tax hikes later this year to stabilize public finances. Immediate resistance can be seen at 1.3278(July31st high), an upside break can trigger rise towards 1.3362(50%fib).On the downside, immediate support is seen at 1.3178(61.8%fib), a break below could take the pair towards 1.3134(Lower BB).
AUD/USD: The Australian dollar edged higher against the greenback on Wednesday as dollar eased after softer U.S. economic data. Market sentiment turned cautious after Tuesday’s weaker-than-expected ISM Services PMI, adding to concerns sparked by last Friday’s disappointing nonfarm payrolls. The data heightened fears of a U.S. economic slowdown and strengthened expectations of an earlier Fed rate cut. Meanwhile, trade tensions escalated over the weekend after Donald Trump threatened to impose 30% tariffs on Mexican and EU imports starting August 1, following the collapse of broader trade talks. All eyes are now on next Tuesday’s U.S. CPI data, which could be a key driver for near-term Fed policy expectations. Immediate resistance can be seen at 0.6480(July 31st high), an upside break can trigger rise towards 0.6523(SMA 20).On the downside, immediate support is seen at 0.6413(61.8%fib), a break below could take the pair towards 0.6397(Lower BB).
USD/JPY: The U.S. dollar weakened against the yen on Wednesday as investor sentiment turned cautious amid uncertainty over future Federal Reserve leadership and renewed tariff tensions. Donald Trump said he will name a nominee for the Fed Board by the end of the week and has narrowed the list of potential replacements for Fed Chair Jerome Powell to four candidates. The comments came alongside weak U.S. services data for July, with rising input costs highlighting the impact of Trump’s tariff threats on business conditions. Meanwhile, Japan reported a sixth straight month of declining real wages, which fell 1.3% year-on-year in June, pointing to continued pressure on household spending and domestic demand. Immediate resistance can be seen at 147.81(SMA 20)an upside break can trigger rise towards 148.54(38.2%fib) .On the downside, immediate support is seen at 146.76(50%fib)a break below could take the pair towards 145.08(July 24th high).
Equities Recap
Most Asian stock indexes rose modestly on Wednesday as investors shrugged off disappointing U.S. economic data and growing corporate concerns over the impact of escalating tariffs.
South Korea’s KOSPI traded flat 0.00% , Hang Seng was up 0.12%,Japan’s Nikkei 225 was up 0.65%
Commodities Recap
Gold prices edged lower on Wednesday, pressured by a slightly stronger U.S. dollar, as investors remained cautious ahead of President Donald Trump’s upcoming decisions on Federal Reserve appointments.
Spot gold was down 0.1% at $3,376.69 per ounce, as of 0631 GMT, after hitting a near two-week high on Tuesday. U.S. gold futures fell 0.1% to $3,432.40.
Oil prices rose on Wednesday, rebounding from a five-week low, as supply concerns grew after Trump threatened tariffs on India over its Russian oil imports.
Brent crude futures gained 48 cents, or 0.7%, to $68.12 a barrel by 0645 GMT, while U.S. West Texas Intermediate crude was up 43 cents, or 0.7%, at $65.59 a barrel.