The Aussie strengthened against the USD yesterday, marking a two-month high, however stabilized during the Asian session. The rally occurred as media report that the Australian government seems to be close in getting the necessary votes to pass a tax cut legislation. It should be noted that the US President overnight had accused China and the EU of playing a “big currency manipulation game”. In addition to that, White House economic advisor Kudlow mentioned that the US would not be lifting tariffs on Chinese products during trade talks. White House officials stated that talks are already underway. On the other hand, Australia’s retail sales growth rate accelerated, showing growth again, despite narrowly missing its target and pushed the AUD somewhat higher, albeit for a short period of time. We maintain the view that the AUD is to remain data driven, yet we would not be surprised to see fundamentals about the US-Sino relationships affecting it once again. AUD/USD continued its rise yesterday, breaking the 0.7000 (S1) resistance line, now turned to support. We maintain a bullish outlook for the pair, as the upward trendline incepted since the 2nd of July, seems to continue to guide the pair’s direction. Should the pair find fresh buying orders along its path, we could see it breaking the 0.7065 (R1) resistance line and aim for higher grounds. Should the pair come under the selling interest of the market, we could see it breaking the prementioned upward trendline, as well as the 0.7000 (S1) support line and aim for 0.6925 (S2) support level.
Bitcoin rises even further
Bitcoin has risen sharply in the last 24 hours, especially in today’s Asian session, breaking the 11500 psychological threshold. There does not seem to be any clear fundamental reasoning yet, behind yesterday’s rally and some speculation maybe in play. Never the less, the cryptocurrency’s bulls were once again full at play and a positive sentiment is surrounding Bitcoin. Should actually the only fuel being provided for the crypto’s rise be the positive feeling of the market, we would maintain our reservations about its course, as it might easily be changed. Please note that there is lots of talk, yet only a few actually walk in the crypto market, with volatility threatening to tumble the crypto once again. Once again, should the positive sentiment continue to dominate the crypto market, we could see Bitcoin rising even further. Bitcoin rose yesterday, breaking the 11580 (S1) resistance line, now turned to support. We maintain a bullish outlook for the crypto currency, as the upward trendline remains intact since the 2nd of July. Should the bulls maintain control over Bitcoin’s direction, we could see it breaking the 12360 (R1) resistance line. Should the bears take over, we could see Bitcoins’ price action, breaking the prementioned upward trendline, the 11580 (S1) support line and aim for lower grounds.
Other economic highlights, today and early tomorrow
It’s expected to be a slow day today as the US market’s will be closed for the 4th of July public holiday and there are only a few high impact financial releases available. Please bear in mind that due to the holiday, thin trading risks may rise especially during the American session. During the European session, we get Eurozone’s retail sales growth rate for May, and during tomorrow’s Asians session, we get Japan’s household spending rate also for May. As for speakers, ECB’s Lane, De Guidos and Enria are scheduled to speak.
AUD/USD H4
Support: 0.7000 (S1), 0.6925 (S2), 0.6860 (S3)
Resistance: 0.7065 (R1), 0.7130 (R2), 0.7200 (R3)
Bitcoin H4
Support: 11580 (S1), 11000 (S2), 10400 (S3)
Resistance: 12360 (R1), 13000 (R2), 13580 (R3)
