August 09, 2021
AUD/USD: The Aussie starts the new trading week around Friday close level, trading in the 15-pip range at the lower end after declining the most in a week. The Aussie pair showed a bearish dynamic the previous day after the US dollar cheered strong employment numbers. July’s employment statistics from the US buoyed the US Dollar Index on Friday. Nonfarm Payrolls rose and surpassed the market expectations. The strong jobs report rejected the market fears that the Delta covid variant slows the economic recovery. The optimism supported the US dollar the most as the policymakers expressed their readiness to provide a multi-billion dollar worth of infrastructure spending.
USD/CAD: The Canadian dollar weakened against the US dollar on the last day of the previous week, driven by the drop in oil prices. So, investors were more impressed with employment data in the US than in Canada. According to the published data, Canada created 94.000 jobs in July, much fewer than expected. However, most of the gains came from full-time employment, indicating that the unemployment rate keeps declining as the economy is now in the reopening stage. The dollar pulled back against major currencies as employers hired the most workers in nearly a year in July, giving the US economy a big boost.
Gold: Gold dropped to a fresh low since March, below $1.700 amid the early Monday morning in Asia, having extended the Friday moves and shown 6% losses. It happened after a strong report on US jobs reinforced expectations that the Federal Reserve may begin scaling back its economic support earlier than expected. It’s important to note that during the initial Asian session today, the price broke strong support levels of $1750 and $1700. Having demonstrated a downtrend, it pulled back from its lows at 1680. Now, the price is going to test the $1730-$1750 range, which will be a tough barrier for buyers. It is also worth noting that the Cayman indicator shows that 80% of traders are now gelong on gold, which suggests that we can expect a strong breakout to the upside.