Daily Forex Analysis - 1st June 2021

USD Overview (01 June 2021)

Yesterday, USD weakened against all major currencies.

The Final Manufacturing PMI data (Forecast: 61.5, Previous: 61.5) will be released later at 2145 (GMT+8).

Also, the ISM Manufacturing PMI data (Forecast: 61.2, Previous: 60.7) will be released later at 2200 (GMT+8).

FOMC member Quarles will be speaking later at 2200 (GMT+8).

Also, FOMC member Brainard will be speaking tomorrow at 0200 (GMT+8).

During these times, there may be volatility in USD.

NZD/USD Outlook (01 June 2021)

Overall, NZD/USD is ranging across. Recently, NZD/USD rejected the resistance zone of 0.72850.

The New Zealand Building Consents m/m data (Actual: 4.8%, Forecast: NA, Previous: 19.2% revised from 17.9%) released earlier today indicated a slowdown in the number of approved for construction.

Currently, NZD/USD is testing the resistance zone of 0.72850 and the next support zone is at 0.71000.

Look for short-term selling opportunities of NZD/USD if it rejects the resistance zone of 0.72850.

AUD/USD Outlook (01 June 2021)

Overall, AUD/USD is ranging across. Recently, AUD/USD broke above the key level of 0.77.

The Australian Building Approvals m/m data (Forecast: -10.1%, Previous: 17.4%) will be released later at 0930 (GMT+8).

The Reserve Bank of Australia (RBA) will be announcing their monetary policy decision later at 1230 (GMT+8). It is expected that the central bank will be holding interest rate unchanged at 0.10%. Also, the RBA will likely make no change to quantitative easing (QE) as it had already highlighted during the previous meeting that it will be evaluating its QE programme during the July meeting. Nonetheless, pay attention to the central bank‘s view on the economic recovery in Australia. Also, with the renewed lockdown of Australia’s Victoria state last Thursday, the RBA may be highlighting the impact on its plan on QE.

The Australian GDP q/q data (Forecast: 1.1%, Previous: 3.1%) will be released tomorrow at 0930 (GMT+8).

AUD/USDs next support zone is at 0.75500 and the next resistance zone is at 0.78000.

If the RBA mentions anything on a potential cut back of QE or an earlier than expected timeline for interest rate hike, look for buying opportunities of AUD/USD.

USD/JPY Outlook (01 June 2021)

Overall, USD/JPY is ranging across. Recently, USD/JPY bounced down from the key level of 110.

The Japanese Consumer Confidence data (Actual: 34.1, Forecast: 33.2, Previous: 34.7) released yesterday indicated a slight decline in the level of confidence of the surveyed households on the Japanese economic conditions.

Also, the Japanese Housing Starts y/y data (Actual: 7.1%, Forecast: 4.9%, Previous: 1.5%) released yesterday a strong increase in the number of new residential buildings that began construction.

USD/JPYs next support zone is at 108.500 and the next resistance zone is at 110.800.

Look for selling opportunities of USD/JPY.

EUR/USD Outlook (01 June 2021)

Overall, EUR/USD is trending upwards. Recently, EUR/USD broke above the key level of 1.22.

The German Preliminary CPI m/m data (Actual: 0.5%, Forecast: 0.3%, Previous: 0.7%) released yesterday indicated a continued rise in Germans inflation in May albeit at a slightly slower rate.

The eurozone CPI flash estimate y/y data will be released later at 1700 (GMT+8).

- CPI Flash Estimate y/y (Forecast: 1.9%, Previous: 1.6%)

- Core CPI Flash Estimate y/y (Forecast: 0.9%, Previous: 0.7% revised from 0.8%)

Also, the eurozone Unemployment Rate data (Forecast: 8.1%, Previous: 8.1%) will be released later at the same time.

EUR/USDs next support zone is at 1.21500 and the next resistance zone is at 1.23200.

Look for buying opportunities of EUR/USD.

GBP/USD Outlook (01 June 2021)

Overall, GBP/USD is trending upwards.

Bank of England Governor Bailey will be speaking later at 2300 (GMT+8). During this time, there may be volatility in GBP.

Currently, GBP/USD is testing to break above the key level of 1.42. Its next support zone is at 1.40000 and the next resistance zone is at 1.43500.

Look for short-term selling opportunities of GBP/USD if it bounced down from the key level of 1.42.

USD/CAD Outlook (01 June 2021)

Overall, USD/CAD is trending downwards. Recently, USD/CAD failed to break the resistance zone of 1.21000.

The OPEC-JMMC meetings will be held today. During this time, there may be volatility in CAD.

The Canadian GDP m/m data (Forecast: 1.1%, Previous: 0.4%) will be released later at 2030 (GMT+8).

Also, the Canadian Manufacturing PMI data (Forecast: NA, Previous: 57.2) will be released later at 2130 (GMT+8).

USD/CADs next support zone is at 1.19000 and the next resistance zone is at 1.21000.

Look for short-term selling opportunities of USD/CAD.

GBP/JPY Outlook (01 June 2021)

Overall, GBP/JPY is trending upwards. Recently, GBP/JPY bounced down from the key level of 156.

Bank of England Governor Bailey will be speaking later at 2300 (GMT+8). During this time, there may be volatility in GBP.

Currently, GBP/JPY is moving towards the key level of 156. Its next support zone is at 155.000 and the next resistance zone is at 157.000.

Look for short-term selling opportunities of GBP/JPY if it fails to break above the key level of 156.

EUR/JPY Outlook (01 June 2021)

Overall, EUR/JPY is trending upwards. Recently, EUR/JPY bounced down from the key level of 134.

The German Preliminary CPI m/m data (Actual: 0.5%, Forecast: 0.3%, Previous: 0.7%) released yesterday indicated a continued rise in Germans inflation in May albeit at a slightly slower rate.

The eurozone CPI flash estimate y/y data will be released later at 1700 (GMT+8).

- CPI Flash Estimate y/y (Forecast: 1.9%, Previous: 1.6%)

- Core CPI Flash Estimate y/y (Forecast: 0.9%, Previous: 0.7% revised from 0.8%)

Also, the eurozone Unemployment Rate data (Forecast: 8.1%, Previous: 8.1%) will be released later at the same time.

EUR/JPYs next support zone is at 132.800 and the next resistance zone is at 134.300.

Look for short-term selling opportunities of EUR/JPY.