After a brief test of levels above the 1.1600 handle on PBoC headlines, EUR/USD manages to keep the buying interest around the 1.1600/10 area in the wake of US Non-farm Payrolls.
EUR/USD alternates gains with losses on NFP
Spot keeps the familiar range post-PBoC spike after the US economy created 157K jobs during July, coming in below estimates at 193K and down from June’s 248K (revised from 213K). Further data showed the unemployment rate slipped to 3.9%, matching prior surveys.
In addition, Average Hourly Earnings – a proxy for wage inflation – expanded at a monthly 0.3% and 2.7% over the last twelve months, in line with previous estimates
Later in the session, the key ISM Non-manufacturing during July is due along with Markit’s Services PMI for the same period.
EUR/USD levels to watch
At the moment, the pair is up 0.06% at 1.1592 facing immediate contention at 1.1562 (low Aug.3) followed by 1.1527 (low Jun.28) and then 1.1508 (2018 low May 29). On the upside, a breakout of 1.1680 (21-day SMA) would aim for 1.1749 (high Jul.23) and finally 1.1792 (high Jul.9).
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