Fundamental News: August 5, 2013

 

The US capped the previous week with the release of the employment data. Bureau of Labor Statistics revealed that non-farm payroll employment advanced 162,000 in July, with the bulk of jobs increased in sectors such as food services and drinking places, retail trade, wholesale trade, and financial activities. The unemployment rate and the number of jobless Americans decreased, 7.4 percent and 11.5 million, respectively. Average Hourly Earnings edged down 0.1 percent.

 

Meanwhile, Core PCE Price Index, Personal Income, and Personal Spending stood at 0.2 percent, 0.3 percent, and 0.5 percent, respectively. Factory Orders increased 1.5 percent, down from the prior month’s 3 percent gain.

 

Today, Australian Bureau of Statistics said Retail Sales turned flat in June. This was down from May’s 0.2 percent advance.

 

In Europe, the July Services PMI for Spain, Italy and the UK stood at 48.5, 48.7, and 60.2, respectively. UK’s figure was the strongest in over six years. Euro-area Final Services PMI came in slightly above forecast at 49.8. Meanwhile, Eurostat reported that June Retail Sales eased 0.5 percent, following a 1.1 percent gain back in May.

 

The lone key data later will come from the US in the form of the ISM Non-Manufacturing PMI.

 

Certain banks in some Australian states observe Bank Holiday which is observed during the first Monday of August each year. On the other hand, most Canadian banks are closed to observe Civic Day.

 

Commodities News

 

Gold declined relatively steadily last week and broke through the recent consolidation in the process. Friday’s recovery was insufficient to avert the bearish weekly close just above $1,300. With this, sellers have paved the way for potential further easing this week. $1,200-$1,300 looks critical on the downside.

 

Oil has been very volatile in the last three weeks with a range spanning between $102.50 and $109, and it seems this will continue to linger in the current week. Buyers and sellers will have to contend with potential strong opposition around $103 and $108. Price action around aforementioned areas would dictate whether the consolidation will prevail further.

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