July 2: Asian session
EUR/USD was capped by the 200-day MA at $1.3070 and edged down a bit. US dollar remains strong as signs of improvement in the US economy buoyed speculation the Fed will soon start tapering asset purchases. A report released today may show American factory orders gained by the most in 3 months (14:00 GMT). Yet, euro stays above $1.3000: on Monday the single currency was supported by the upbeat manufacturing PMI data. GBP/USD is trading in the $1.5200 area after failing to rise above $1.5250 yesterday.
USD/JPY strengthened to 99.80, but holds a bit below the yesterday’s high of 99.86. USD/CHF is consolidating in the 0.9465/45 range after having formed a "shooting star" candle with a top at 95.00 on Monday. USD/CAD keeps consolidating in the 1.0500 area.
AUD/USD dropped from yesterday’s highs of $0.9250 to $0.9160. As expected, RBA left its interest rate at 2.75%. However, the regulator sounded dovish, saying that “the inflation outlook, as currently assessed, may provide some scope for further easing, should that be required to support demand”. According to RBA, the currency still remains high despite the recent fall. NZD/USD slipped by 50 pips to $0.7780.