Yesterday’s session was quiet for the traders. Euro traded mixed versus the G10 basket while sterling and precious metal managed to challenge our recommended targets. The U.S. dollar awaits the significant events that are coming this week.
Monday was a Labour Day in U.K. and German as well as in other European countries, however, there were important economic data that are worth mentioning. Overnight, the Reserve Bank of Australia left interest rates unchanged and drove the AUD/USD pair sharply higher above the 0.7500 strong psychological level.
Busy Week is Coming for U.S. Dollar
For this week, investors are hoping that the Fed will give a signal for a rate hike in June, on Wednesday. Moreover, traders await the non-farm payrolls report this Friday and they are expecting that U.S. economy added more jobs in April than in March, 180K versus 98K. The spotlight of Monday’s session was the U.S. ISM Manufacturing PMI which slow down for April to 54.8 from 57.2 before, lower from the expectations. Also, in the U.S., the personal income fell by 0.2% this month from 0.3% previously while the personal spending remained unchanged. The ISM prices paid and the construction spending for March released as well. The ISM prices paid ticked higher than forecasts at 68.5 for April from 70.5 the month prior. The greenback traded mixed yesterday versus the G10 basket while it moved strongly lower against the Australian Dollar and the New Zealand Dollar.
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