The U.S. dollar is mostly unchanged overnight, with a slight tilt towards dollar strength as U.S. equity futures are negative this morning.
Overview
There was little in the way of data releases abroad today so currency pairs lack a definitive direction this morning.
Later this morning, U.S. factory orders are expected to show slowing growth from the month prior and Durable Goods orders are expected to register at 7.3% growth in June. Friday’s jobs report continues to be the biggest risk event on this week’s calendar.
Meanwhile, we will continue to monitor progress (or lack thereof) on Capitol Hill this week. Democrats, Republicans and the White House still appear far apart in negotiations over a new virus relief package. The Senate is set to leave on break on Friday, making this week an unofficial deadline for action.
What to Watch Today…
- Factory Orders at 10 a.m.
Complete Economic Calendar can be found here.
EUR
EUR/USD is little changed this morning, holding its pullback from today’s session. The common currency gained 5% versus the greenback in July but has been unable to extend gains at the beginning of August. The European economic docket is light today so traders are likely to look ahead to tomorrow’s Euro-zone PMI reports.
AUD
Commodity-based currencies were under pressure again overnight as the price of oil faced headwinds. The Norwegian krone led losses versus the greenback. The Canadian dollar fell against most of its counterparts ahead of data that is expected to highlight the fall of the country’s manufacturing sector.
The Australian dollar was the exception, as the Aussie rose half a percent against its American rival. The Reserve Bank of Australia stated that the country’s economic downturn is not as severe as earlier expected. The comments come days after the state of Victoria enacted new shutdowns. The central bank kept interest rates on hold.
