Fundamental News: July 3, 2013
The Census Bureau in the United States pronounced Tuesday a second monthly growth in Factory Orders. New purchase orders to US factories moved forward by 2.1 percent in May, driven by demand for computers and machinery.
Today, the Housing Industry Association in Australia declared 1.6 percent advancement in the HIA New Home Sales in May, a modest growth compared to March and April’s 4.2 percent and 3.9 percent respective gains.
Australian Bureau of Statistics reported a 0.1 percent increase in Retail sales in May, as Australians continue to be cautious in terms of spending. Nevertheless, this is a step forward after retail sales slipped in the previous two months. On the other hand, Trade Balance rose more than expected in May, registering AUD0.67 billion after a positively-revised AUD0.17 billion reading in April.
In Europe, a raft of Services PMI data was released. Spain’s Services PMI came in at 47.8; Italy’s Services PMI came in at 45.8 (weaker than expected); Euro-area Final Services PMI stood at 48.3. UK Services PMI, came in at 56.9, better than the 54.6 median forecast.
Euro-area Retail Sales will be announced on top of this hour. This will be followed by economic releases during the North American session, particularly ADP Non-Farm Employment Change, US and Canada Trade Balance; US Unemployment Claims, and ISM Non-Manufacturing PMI.
Following two up days in gold, price struggled to move forward in yesterday’s trading. Price rose steadily in Asia yesterday, but gains subsequently evaporated after topping out in the upper-$1,260s. A smooth decline ensued, followed by 12 hours of consolidation in the $1,240s. The current low must hold if buyers are aiming for a push toward $1,300-50.
Oil made a strong finish yesterday, closing the day at a price not seen since September 2012. This made headway for an audacious push through stops from $100 to $102 in a matter of three hours during today’s Asian session. Price has eased back since, reaching briefly below $100 in the preceding hour. If this ascent proves sustainable, $100-$101 should hold this week.