Data on Friday showed that the employment rate (other than agriculture) rose to more than 850,000 jobs, exceeding expectations last month. But the unemployment rate rose to 5.9 percent from 5.8 percent, while the average hourly earnings measure, a measure of wage inflation, rose just 0.3 percent last month. Which is lower than the forecast for an increase of 0.4%.

This week, the Fed meeting will be even more important as members can give an idea as to whether FOMC members are beginning to lose confidence in the temporary nature of inflation and when the Fed may begin to reduce its asset purchases. However, US Treasury yields are likely to continue trading at barrier levels until the Fed becomes more active in economic policy tightening talks.

Economic Calendar of July 06

Australia: RBA Interest rate Decision and Statement, RBA’s Governor Lowe speech.

Germany: Factory Orders, ZEW Survey- Current Situation and Economic Sentiment.

Eurozone: ZEW Survey – Economic Sentiment, Retail Sales, Economic Commission releases Economic Growth Forecast.

United Kingdom: 10-year Bond Auction.

United States: Markit Services PMI, Markit PMI Composite, ISM Services New Orders Index, ISM Services PMI, ISM Services Employment Index, ISM Services Prices Paid.

XAUUSD trading recommendation

With the ISM Purchasing Managers’ Index (June) data clear at 60.6 versus the 61.0 forecast and rising unemployment, the ISM Non-Production Purchasing Managers Index (June) data may be more realistic. Tuesday’s lower-than-expected forecasts and key data may push gold higher, but investors remain cautiously awaiting comment on Wednesday’s Fed meeting, mainly as gold prices traded lower. At the 1751-1795 level, over the past two weeks, investors could sell gold at $ 1803 or better sell at 1805, setting risk management at $ 1815 and a profit target of $ 1,775.

Analyzed by: Mr. Tum Sothoeurn, Independent Analyst