August 17, 2021
EUR/USD: The European currency fell against the US dollar on Monday. The dismal sentiment resulted from tensions in the Middle East and concerns related to US growth, now that the coronavirus Delta variant storms the country. As for macroeconomic figures, the economic calendar had little to offer, as the Eurozone did not publish any data, while the US released the August New York Empire State Manufacturing Index, which was worse than expected. Today, the Eurozone will publish the preliminary estimate of the second quarter’s Gross Domestic Product. And the US will release July Retail Sales and Industrial Production and Capacity Utilization. The local support level can be seen at 1.1755. A breakout below could take the pair towards 1.1710.
NZD/USD: The New Zealand dollar fell against the US dollar on Monday, while the American currency benefits from deterioration in the market sentiment. The data from China released yesterday showed that Industrial Production and Retail Sales rose worse than expected. These disappointing figures placed the kiwi under pressure and caused the NZD/USD to reverse down. The key event for the New Zealand dollar will be on Wednesday when the Reserve Bank of New Zealand will announce its monetary policy decision. The local resistance level can be seen at 0.6995. If the pair reaches this level and rebounds, it can trigger a downside move towards 0.6940.
XAU/USD: Gold rose on Monday due to a fall in US Treasury yields, with investors looking for more direction from the Federal Reserve on monetary policy. Gold also got a boost from safe-haven sentiment. The metal showed an impressive rebound in the second half of the previous week and closed in positive territory. The FOMC minutes are likely to determine gold’s next near-term direction. The local support level can be seen at $1770. A breakout below could take the pair towards $1730.