Focus Fed chair Powell – Greenback remains steady

After Fed reported the strong economic growth in the United States - the U.S. dollar was holding steady last week. Euro opened lower than the resistance line at 1.1700 dollar on Monday and broke the resistance. However, investors may focus on Fed chair Powell’s opinion today and tomorrow. How trade war with China will affect the future of the U.S. economy? There was not much information about trade war in Fed report last time but the current situation has changed. Trump prepares to tariff Chinese import goods on 200 billion dollars but China still does not have any reactions.
The rising inflation in New Zealand may support Kiwi dollar to break the bearish trend line. If NZD/USD rises above 0.6786 points, it may rise to 0.6850 points. While, Aussie dollar may hold steady and swing follow U.S. dollar’s factors because RBA will release meeting minutes which may not surprise markets. In my opinion, AUD/USD may continue moving sideways 0.7300-0.7450 points.
British pound held steady above 1.3200 dollar on Monday and it may swing in the frame 1.3200-1.3300 await earning index today. If the U.K. labor market is strong and average earning rises up fast, pound may have strong supprot from the speculation. Investors may forecast that BoE may rise the interest rate again this year from the strong economy and rising earning in the United Kingdom.
While Bitcoin price rose above 6,200$ and it may head up to 6,500$. I think Bitcoin does not have strong bullish trend because the volume is still lower than the average. It may move sideways up to resistant line.
Economic indices in focus:
• New Zealand: CPI (Q2) at 05.45 a.m.
• Australia: RBA Meeting Minutes at 08.30 a.m.
• UK: Average earnings index +bonus (May) and Claimant count change (Jun) at 15.30
• USA: Fed Chair Powell Testifies at 21.00 p.m.

By Niramon Nitnitiphruet
Financial analyst, Olymp Trade.

Olymp Trade Review