The New Zealand dollar (Kiwi) rose slightly today after New Zealand reported mixed electronic card sales data for the month of July. During the month, electronic card retail sales rose by an annualized rate of 1.6%, which was better than June’s gain of 1.1%. Still, this was lower than the consensus estimates of 2.2%. On a MoM basis, electronic card sales declined by -0.1%, which was lower than the expected 0.6%. In recent years, investors have focused on electronic card retail sales because a substantial amount of shopping is made using credit and debit cards.
Later today, the Department of Agriculture (USDA) will release the World Agriculture Supply and Demand Estimates (WASDE). This is a monthly report that is used by investors, farmers, and policymakers to understand the supply and demand issues in the agricultural sector. This report is particularly important because it comes a few weeks after China announced that it was halting its purchases of American soybeans. This is after Trump announced fresh new tariffs on the country.
It will be a relatively low-volume day in the world’s markets. This is because a good number of countries will be on holiday to celebrate Eid al-Adha. Therefore, investors will be focusing on data that will be released tomorrow and later this week. Tomorrow, the CPI will be released from Germany and Spain. From the UK, the market will receive earnings data from the United Kingdom, and from the US, investors will receive the CPI data. Meanwhile, Asian stocks rose today, with the China A50 index and the Nikkei gaining by 150 and 90 points respectively. In Australia, the ASX index declined by 11 points.
EUR/USD
The EUR/USD pair was relatively unmoved in the Asian session. It is trading at 1.1206, which is where it ended the week. On the hourly chart, this price is slightly above last week’s low of 1.1166 and the high of 1.1250. As a result of the consolidation, the price is along the short and medium-term exponential moving averages. The pair is also along the important green support shown below. The pair will likely remain in this consolidation today because there will be no major economic data.
NZD/USD
The NZD/USD pair moved up slightly after the release of electronic card sales data. The pair rose from 0.6438 to a high of 0.6470. On the four-hour chart, the price is along the 23.6% Fibonacci Retracement level. It is also along the 14-day EMA and slightly below the 28-day EMA. The RSI has moved from the oversold level of 30 and is at 45. The pair will likely remain in this range as investors wait for the US CPI data tomorrow.
XAU/USD
The XAU/USD pair was relatively unmoved and is trading at 1496. This is slightly lower than last week’s high of 1510. In recent months, the pair has moved to an all-time high following the Fed’s decision to lower interest rates. On the hourly chart, the price is slightly below the 14-day and 28-day moving averages. The RSI has been moving lower. The pair will likely remain in this holding pattern today ahead of the US CPI data tomorrow.
