Daily Forex Analysis - 7th June 2021

USD Overview (07 June 2021)

Last Friday, USD weakened against all major currencies.

The U.S. jobs report released last Friday indicated more jobs were being added in May than in April. However, as the market was expecting a stronger figure, the actual lower-than-forecast release was a disappointment, leading to the weakening of the U.S. dollar. Nonetheless, unemployment rate continues to decline.

- Average Hourly Earnings m/m (Actual 0.5%, Forecast: 0.2%, Previous: 0.7%)

- Non-Farm Employment Change (Actual: 559K, Forecast: 645K, Previous: 278K revised from 266K)

- Unemployment Rate (Actual: 5.8%, Forecast: 5.9%, Previous: 6.1%)

NZD/USD Outlook (07 June 2021)

Overall, NZD/USD is ranging across. Recently, NZD/USD strengthened after the release of the weaker than expected U.S. jobs report.

New Zealand banks will be closed today in observance of the Queens Birthday. Expect lower trading volatility and volume during the usual New Zealand market session.

Currently, NZD/USD is testing to break above the key level of 0.72. Its next support zone is at 0.71000 and the next resistance zone is at 0.72850.

Look for short-term buying opportunities of NZD/USD if it breaks above the key level of 0.72.

AUD/USD Outlook (07 June 2021)

Overall, AUD/USD is ranging across. Recently, AUD/USD broke above the key level of 0.77 after the release of the weaker than expected U.S. jobs report.

The Australian NAB Business Confidence data (Forecast: NA, Previous: 26) 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.

Look for short-term buying opportunities of AUD/USD.

USD/JPY Outlook (07 June 2021)

Overall, USD/JPY is trending upwards. Recently, USD/JPY broke below the key level of 110 after the release of the weaker than expected U.S. jobs report.

The Japanese Final GDP q/q data (Forecast: -1.2%, Previous: -1.3%) will be released tomorrow at 0750 (GMT+8).

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

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

EUR/USD Outlook (07 June 2021)

Overall, EUR/USD is ranging across. Recently, EUR/USD strengthened after the release of the weaker than expected U.S. jobs report.

The eurozone Retail Sales m/m data (Actual: -3.1%, Forecast: -1.4%, Previous: 3.3% revised from 2.7%) released last Friday indicated a decline in consumer spending in April.

Currently, EUR/USD is testing the support zone of 1.21500 and the next resistance zone is at 1.23200.

Look for short-term buying opportunities of EUR/USD if it rejects the support zone of 1.21500.

GBP/USD Outlook (07 June 2021)

Overall, GBP/USD is ranging across. Recently, GBP/USD bounced up from the key level of 1.41 after the release of the weaker than expected U.S. jobs report.

The UK Construction PMI data (Actual: 64.2, Forecast: 61.9, Previous: 61.6) released last Friday indicated continued expansion of the construction sector in May at the fastest pace since data collection started in April 1997.

Currently, GBP/USD is moving towards 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 buying opportunities of GBP/USD if it breaks above the key level of 1.42.

USD/CAD Outlook (07 June 2021)

Overall, USD/CAD is ranging across. Recently, USD/CAD rejected the resistance zone of 1.21000 after the release of the weaker than expected U.S. jobs report.

The Canadian jobs report released last Friday indicated continued decline in jobs in May caused by the third-wave COVID restrictions imposed across Canada with Ontario and Nova Scotia accounting for the highest number of employment decline. Unemployment rate inched higher as forecasted.

- Employment Change (Actual: -68.0K, Forecast: -23.5K, Previous: -207.1K)

- Unemployment Rate (Actual: 8.2%, Forecast: 8.2%, Previous: 8.1%)

The Canadian Ivey PMI data (Actual: 64.7, Forecast: 62.3, Previous: 60.6) released last Friday indicated a strong increase in the pace of expansion of business activities.

Currently, USD/CAD is moving towards the resistance zone of 1.21000 and the next support zone is at 1.19000.

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

GBP/JPY Outlook (07 June 2021)

Overall, GBP/JPY is trending upwards. Recently, GBP/JPY trended into the support zone of 155.000.

The UK Construction PMI data (Actual: 64.2, Forecast: 61.9, Previous: 61.6) released last Friday indicated continued expansion of the construction sector in May at the fastest pace since data collection started in April 1997.

Currently, GBP/JPY is testing the support zone of 155.000 and the next resistance zone is at 157.000.

Look for buying opportunities of GBP/JPY if it bounces off the support zone of 155.000.

EUR/JPY Outlook (07 June 2021)

Overall, EUR/JPY is trending upwards.

The eurozone Retail Sales m/m data (Actual: -3.1%, Forecast: -1.4%, Previous: 3.3% revised from 2.7%) released last Friday indicated a decline in consumer spending in April.

Currently, EUR/JPY is moving towards the support zone of 132.800 and the next resistance zone is at 134.300.

Look for buying opportunities of EUR/JPY if it bounced off the support zone of 132.800.