Fundamental analysis GBPUSD, EURUSD, NZDUSD, AUDUSD, XAUUSD, Brent, WTI for 05.10.2021
The US dollar is weakening this week amid improving conditions and lower risks in the global economy. It seems that the factor of a potential default in the USA is not taken into account anymore, as it is not the first time in the past when Congress solves such a problem. The key event this week is the release of the U.S. labor market, which is due on Friday, October 8.
The EUR/USD is consolidating near the psychological level of 1.1600. Positive data on business activity in the Eurozone, released today, was not enough to support the trading instrument. With a high probability, the instrument will continue to move in a limited price range until Friday.
The British pound was moderately stronger on Tuesday after the publication of the UK Composite Business Activity Index, which showed minimal growth of the index, whereas the forecasted decline was 0.7 basis points. In addition, business activity in the service sector rose from 55 to 55.4 points. GBP/USD is testing the resistance level of 1.3600 again, a breakdown of which will help the pair to strengthen the range of 1.3700-1.3730.
AUD/USD and NZD/USD continue to strengthen due to investors' increased risk appetite. Tonight, the Reserve Bank of Australia decided to keep its key rate at 0.10%. The regulator will continue to pursue a soft monetary policy to meet employment and inflation targets. The Reserve Bank of New Zealand will announce its interest rate decision on Tuesday night. The central bank is expected to raise the rate by at least 25 basis points, which will boost the NZD/USD. The Canadian dollar has strengthened today thanks to a trade surplus in August. USD/CAD continues to receive support from the hydrocarbon market.
The price of Brent and WTI crude oil renewed seven-year highs after participants in the OPEC+ agreement did not increase output amid strong oil demand and rising natural gas prices.
The XAU/USD traded multi-directionally. Interest in gold weakened as market participants use the instrument for short-term speculative trading. Further dynamics of the pair depend on Friday's release on the labor market.