CNH: USD/CNH Eyeing Sub 7.1100 Test, China Equities Surge

• RES 3: 97.190 - High May 5 2023
• RES 2: 96.932 - 76.4% of Mar-Nov ‘23 bear leg 
• RES 1: 96.860 - High Apr 07
• PRICE: 96.610 @ 15:47 BST Aug 12
• SUP 1: 95.900 - Low Jan 14  
• SUP 2: 95.760 - Low 14 Nov ‘24
• SUP 3: 95.480 - Low Jan 11 2023 and a major support 

Aussie 3-yr futures gapped sharply higher on the back of the soft US NFP data, and this week’s CPI print should also prove supportive. Recent price action has narrowed the gap with resistance at 96.730, the Sep 17 ‘24 high, leaving 96.860 as the next key level. Any continuation lower would instead strengthen a bearish theme. This would refocus attention on 95.760, the 14 Nov ‘24 low. Conversely, a reversal higher would refocus attention on 96.860, the Apr 7 high.

Headlines have crossed the WSJ that the US Administration is considering changes to how the BLS collects and reports jobs data. See this link. 

• The WSJ notes: "The Trump administration is considering changes to how the federal government collects and reports jobs data, according to White House officials, following President Trump's decision to fire the Bureau of Labor Statistics commissioner earlier this month in the aftermath of weak employment numbers."
• It adds: "Trump has complained publicly and privately that jobs report data is designed to hurt him politically, taking aim at large revisions to the numbers that have complicated his contention that the economy is soaring in his second term. Trump has told his advisers that he doesn't want large revisions to the data in the future, the officials said."
• This comes after overnight reports that in terms of the new BLS head: "EJ Antoni, President Donald Trump’s pick to lead the Bureau of Labor Statistics, has suggested suspending the agency’s monthly jobs reports and publishing only quarterly numbers until issues with data collection are corrected. In an interview with Fox Business before Trump nominated him on Monday, Antoni said businesses can’t plan and the Federal Reserve can’t conduct monetary policy when the monthly report is unreliable and frequently overstated and thus misleading." (via BBG).  

Source: Bloomberg Finance L.P./MNI