US dollar wavers as US coronavirus death rate jumps
July 8, 2020
Posted by: Analysis Team
Category: FOREX, Technical Analysis
The Australian dollar is little changed today as the number of new infections in the country rise. Victoria state confirmed about 134 cases and there are more cases in Melbourne. As a result, the government has announced new measures to contain the disease. For example, it has formed three rings of containment in Melbourne and limited foreign arrivals from abroad. The new information comes a day after the RBA left the interest rate unchanged. It also came a week after the country released upbeat retail sales and manufacturing PMI data.
The US dollar index wavered during the Asian session as traders continued to monitor the rising number of new coronavirus cases in the United States. Data from Johns Hopkins confirmed more than 50,000 new infections yesterday. Some states, including Texas, Florida, and California confirmed more than 10,000 in a single day. That was the biggest one-day jump since June 3. Worse, data showed that the death rate from the country rose to the highest level in weeks.
The price of crude oil was little changed today as traders reflected on the inventories data from the United States. The numbers showed that oil inventories rose by 2 million barrels in the previous week. That was a surprising number considering most analysts were expecting the numbers to drop by more than 3.7 million barrels. Last week, data from API showed that inventories dropped by more than 8.15 million barrels. We will receive data from the EIA later today. Analysts expect the numbers to show that inventories fell by more than 3.1 million barrels.
The EUR/USD pair was little changed during the Asian session. It is trading at 1.1277, which is slightly above yesterday’s low of 1.1257. On the four-hour chart, the price is slightly above the 50-day and 100-day exponential moving averages. The price is slightly above the 23.6% Fibonacci retracement level. It is also slightly above the ascending trend line shown in white. The pair is likely to remain at the current range because there is no major economic data today.
The GBP/USD pair rose to an intraday high of 1.2593. On the four-hour chart, the price is at the highest it has been since June 18. It is above the 50-day and 100-day exponential moving average while the RSI has been moving upwards. Also, the price is above the dots of the Parabolic SAR indicator. Therefore, the price may continue rising as bulls attempt to move above 1.2600.
The AUD/USD pair is trading at 0.6940, which is slightly below this week’s high of 0.7000. On the four-hour chart, the price is above the 50-day and 100-day exponential moving average while the Parabolic SAR is above the price. The signal and main line of the MACD have made a bearish crossover. Still, with no major economic data coming out today, the pair may remain at the current range.