Market Overview
- The Indian Rupee strengthens against the US Dollar despite Trump's tariff threats on BRICS nations and pharmaceutical imports.
- The US Dollar remains strong as positive trade talks with China are signaled, and tariffs on copper imports are announced.
- The NZD/USD pair struggles to maintain gains post-RBNZ decision due to reduced Fed rate cut expectations and trade concerns.
- Gold prices in India fell due to reduced Fed rate cut bets and Trump's announcement of higher tariff rates.
- The EUR/USD pair falls due to renewed tariff threats from Trump, with traders awaiting the FOMC Minutes release.
- The Australian Dollar strengthens against the US Dollar as RBA Governor Bullock warns of inflation risks.
- The Japanese Yen faces pressure due to concerns about the economic impact of US tariffs and reduced BoJ rate hike bets.
Fundamental Analysis
- Trump's tariff threats on various countries and products add uncertainty to the market, affecting various currency pairs.
- Investors are awaiting the FOMC minutes from the June policy meeting, which could provide insights into future US interest rate policy.
- RBA Governor Bullock warns of inflation risks due to high labor costs and weak productivity, strengthening the Australian Dollar against the US Dollar.
- The Reserve Bank of New Zealand (RBNZ) maintains the Official Cash Rate (OCR) at 3.25% in July, aligning with market expectations.
Technical Analysis
- EUR/USD: Falls to around 1.1705 in Asian trading due to renewed tariff threats from Trump.
- GBP/USD: Faces pressure as Trump threatens additional tariffs on countries aligning with anti-American policies.
- USD/JPY: Bullish move towards 148.00 expected due to expectations of a firm US Dollar.
- Gold (XAU/USD): Faces selling pressure due to reduced bets for a Fed rate cut in July, with potential decline if it breaks the $3,270 support level.
Conclusion
- The market remains volatile with Trump's tariff threats affecting various currency pairs and commodities.
- The FOMC minutes from the June policy meeting are highly anticipated as they could provide insights into future US interest rate policy.
- Gold prices could decline further due to reduced bets for a Fed rate cut in July and a stronger US Dollar.
- The AUD/USD pair targets the nine-day EMA barrier after breaking above 0.6500, indicating bullish sentiment.
- The USD/JPY pair could see a bullish move towards 148.00 due to expectations of a firm US Dollar.
