Article Highlights

  • Canadian RBC manufacturing PMI down from 52.1 to 51.8
  • New Zealand NZIER business confidence index up from 2 to 19
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Dollar pairs were also enjoying the Fourth of July holiday, cruising mostly sideways along the forex charts while U.S. traders were out watching the fireworks.

Major Events:

Economic reports from Canada – The only reports yesterday were out of Canada, particularly the medium-tier RBC manufacturing PMI which showed a decline from 52.1 to 51.8. This reflects a slower pace of growth in the industry, possibly weighing on overall economic activity down the line.

The BOC released its quarterly Business Outlook Survey, which assessed that sentiment was subdued due modest domestic demand and a drag on commodity-related activity during Q2. Moving forward, central bank officials still expect soft business activity ahead but there could be green shoots in non-energy firms and in the services sector.

Major Currency Movers:

CAD – The Canadian currency took advantage of the lack of liquidity for its North American counterpart to chalk up some gains.

USD/CAD broke below the 1.2850 minor psychological support to a low of 1.2829, CAD/JPY edged closer to the 80.00 major psychological mark, EUR/CAD found support at 1.4300 and rallied to 1.4343, and GBP/CAD is still hovering below the 1.7100 handle.

Watch Out For:

  • 2:00 am GMT: New Zealand ANZ commodity prices
  • 2:30 am GMT: Australia retail sales (0.3% expected, 0.2% previous)
  • 2:30 am GMT: Australia trade balance (-1.72B AUD expected, -1.58B AUD previous)
  • 2:45 am GMT: Chinese Caixin services PMI (52.3 expected, 51.2 previous)
  • 5:30 am GMT: RBA interest rate decision (Check out Forex Gump’s Trading Guide here!)

See also:

Asian Session Recap

London Session Recap

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