Global macro overview for 07/07/2016:
According to the data published yesterday, the ISM Non-Manufacturing PMI index advanced to 56.5 points and it beat the expectations of 53.3 points. Moreover, the number revealed was better than last month's reading of 52.2 as well. The ISM index gauges business conditions in non-manufacturing industries, based on measures of employment trends, prices, and new orders. The employment component rose from 49.7 to 52.7 points, which is a good sign for the NFP Payrolls report this Friday. In conclusion, it is the first sign of a rebound in the sector after horrible May reading (the weakest release since February 2014).
Let's now take a look at the EUR/AUD technical picture in the daily time frame. The recent decline from 1.5657 top indicates that the bear camp might be getting strength, especially if the next support at the level of 1.4471 gets violated. The view supports the fact that the price is trending below the short-term dashed trend line and below 55, 100, and 200 DMA as well.
