We received’t see tons of top-tier reviews at the moment, however Canada’s manufacturing PMI and crude oil value actions might make volatility fascinating for USD/CAD merchants!

Take a look at what I discovered on the 15-minute time-frame.

Earlier than shifting on, ICYMI, yesterday’s watchlist checked out AUD/NZD’s downtrend pullback forward of RBA’s coverage assertion. Make sure to try if it’s nonetheless play!

And now for the headlines that rocked the markets within the final buying and selling periods:

Recent Market Headlines & Financial Knowledge:

S&P World US Manufacturing PMI for June: 46.3 (as forecasted) vs. 48.4 in Could

ISM Manufacturing PMI for June: 46.0 (48.0 forecast; 46.9 earlier); Employment Index fell by -3.3 to 48.1; Costs Index fell -2.4 to 41.8

Russia and Saudi Arabia prolonged oil provide cuts, prompting a spike greater in oil costs on Monday

China hits again within the chip struggle, imposing export controls on Gallium and Germanium utilized in laptop chips and photo voltaic panels Tstarting August 1 “to guard nationwide safety and pursuits.”

RBA retains rates of interest at 4.10%, shares inflation has “handed its peak” however that “some additional tightening of financial coverage” should be required

Worth Motion Information

Overlay of AUD Pairs 15-min

One of many greatest tales of Asian session buying and selling was the Reserve Financial institution of Australia (RBA) conserving its rates of interest at 4.10% when a number of market gamers had priced in one other 25bps fee hike.

The central financial institution additionally mentioned that inflation has “handed its peak” however that fee hikes are nonetheless doubtless relying on the inflation and financial developments.

AUD, which had been ranging close to its U.S. session ranges, dropped to its Monday lows earlier than recovering nearly all of its intraday losses towards its main counterparts.

One doable purpose for the sharp restoration is an absence of a decisive sentiment pattern, which most likely resulted in profit-taking not lengthy after the RBA’s occasion.

Canada’s manufacturing PMI at 1:30 pm GMT
NZ ANZ commodity costs at 1:00 am GMT (July 5)
Australia’s retail gross sales at 1:30 am GMT (July 5)
China Caixin companies PMI at 1:45 pm GMT (July 5)

Use our new Foreign money Warmth Map to shortly see a visible overview of the foreign exchange market’s value motion! 🔥 🗺️

USD/CAD 15-min Foreign exchange Chart by TV

In case you have been too busy buying and selling different comdoll pairs, you must know that the U.S. greenback has been on a lowkey downtrend towards the Loonie since late final week.

USD/CAD discovered resistance on the 1.3280 space and the pair is now buying and selling in what appears like a 40-pip vary on the 15-minute chart.

Are USD/CAD simply taking a breather? Or is USD/CAD able to revisit final week’s lows?

Canada is printing its manufacturing PMI report and you’ll guess that merchants will verify to see if the Financial institution of Canada (BOC) can even get another reason to pause its rate of interest hikes.

We can also’t low cost the FOMC assembly minutes report scheduled tomorrow, which might restart USD/CAD’s upswing.

Momentum above the S1 (1.3230) Pivot Level assist might push USD/CAD again to the 1.3260 earlier excessive if not the R1 (1.3270) zone within the subsequent couple of buying and selling periods.

USD/CAD might even full a bullish flag sample and make new intraweek highs if there’s sufficient momentum!

But when Canada’s PMI surprises to the upside, or if merchants take income from their lengthy USD trades forward of the FOMC assembly minutes, then USD/CAD might break its vary and revisit the 1.3200 earlier assist space.

What do you suppose? Will USD/CAD stay inside its vary? Or will we see a breakout this week?