Capacity utilization in the United States reached 77.6%, surpassing the expected 77.4%

    by VT Markets
    /
    Jul 16, 2025
    US capacity utilization for June reached 77.6%, exceeding the expected 77.4%. This improvement indicates better resource use in the country’s manufacturing and industrial sectors. In Australia, the unemployment rate is expected to stay the same, with a forecast of 20,000 new jobs added in June. This comes after a report showing a loss of 2,500 jobs in May.

    China’s Economic Performance

    China’s GDP grew by 5.2% year-on-year in the second quarter, surpassing expectations. However, there are worries about a slowdown in fixed-asset investment, retail sales, and falling property prices. Foreign exchange traders should recognize the significant risks involved. Using leverage can greatly impact trading results, so it’s important to consider all risks before trading in forex. Market fluctuations are anticipated for currencies like AUD/USD and EUR/USD. Gold prices have stabilized around $3,350 per troy ounce as the US Dollar shows signs of retreating.

    Analysis of the US and International Markets

    The increase in resource use in the US suggests economic strength. This data may reinforce the Federal Reserve’s commitment to its current monetary policy, focusing on inflation management. As a result, derivative traders might explore strategies that benefit from a strong US dollar in the upcoming weeks. Australia’s stable job market supports its currency, but the slowdown in China’s fixed-asset investment and retail sales raises concerns. Recent data indicates weaker demand for key Australian exports, such as iron ore. This mixed picture advises traders to be cautious with AUD positions and consider options to manage potential sharp market moves. Given the strong signals from the US economy amid a mixed international landscape, we expect ongoing fluctuations for currencies like AUD/USD. Recent Eurozone data shows persistent inflation, but weak German manufacturing PMI points to economic challenges, complicating the outlook for EUR/USD as well. Historically, differences between major economies often lead to greater currency volatility. Gold prices have stabilized around $2,320 per troy ounce after dropping from record highs. Despite a strong dollar being a challenge, ongoing central bank purchases—over 1,000 metric tons in both 2022 and 2023—support the metal. Traders may use derivatives to hedge against downside risks while positioning for a potential rally if geopolitical tensions rise. Create your live VT Markets account and start trading now.

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