Gold Surges Above $2000, NZ Employment and Services PMIs

Equities Gain Slightly, Gold Continues To Hit Record Highs

It was a rather mixed day for the equity markets around the world. The European bourses ended their trading sessions almost unchanged. The German Dax closed slightly in the red, with a small 0.36% loss, whereas the FTSE 100, CAC 40 and IBEX 35 ended their trading sessions with modest gains of +0.05%, +0.28% and +0.67% respectively. The best performer was the Italian FTSE MIB, gaining 1.21%. The US indices also managed to close their trading sessions in the green. In fact, the Nasdaq Composite and Nasdaq 100 were both able to hit new all-time highs.

New Zealand Job Numbers

During the early hours of the Asian morning, New Zealand released its jobs numbers for Q2. The data showed a significant decline in the unemployment rate, which came out at 4.0%, when the expectation was at 5.8%. However, the actual reading was only better by two tenths of a percent from the previous number. Nevertheless, NZD traders took that as a positive and kept the currency from moving lower against its major counterparts. New Zealand’s employment change figure on a QoQ basis came out at -0.4%, which is much better than the initially expected -2.0%. That said, the number was still not better than the previous +0.7%. The participation rate showed fractionally below the expected 69.80%, at 69.70%. Although the figures look quite positive, it might be that the initial forecasts were too pessimistic, as it seems that the actual readings have beaten their expectations quite easily. That could be the case why we are not seeing a bigger jump in NZD against other currencies.

Services PMIs From Different Nations Are In The Spotlight

Today will also be a service PMI day, with various countries across the globe delivering their data on this indicator. But some nations, like Australia, Japan and China have already showed us how their service sectors performed in July. Unfortunately for Australia, their service PMI fell slightly below forecast, but stayed well above the previous reading. The actual number came out 58.2, when the expectation was for a 58.5. The previous reading was at 53.1. Japan showed a good result, beating both the forecast and the previous number, coming out at 45.4. However, that still doesn’t help much, as the number remains in contraction zone.

FTSE 100 — Technical Analysis

After a strong reversal to the upside on Monday, the FTSE 100 continues with its path of recovery. This morning, the index is seen breaking a short-term tentative downside resistance line drawn from the high of July 23 rd. Although everything looks quite positive right now in regards to the near-term outlook, we would also prefer to wait for a break above the 6080 barrier first, before examining larger extensions to the upside.

NZD/USD — Technical Outlook

At the start of the week, NZD/USD found good support near an area, at 0.6589, which previously was seen as a strong resistance. The pair then rebounded and is now showing signs of a possible continuation further north. At the same time, the rate is now trading above a short-term tentative upside support line drawn from the low of June 30 th. For now, we will take a bullish approach and aim a bit higher.

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