With not quite a lot of information on faucet, merchants may proceed to commerce the potential for a Fed slowdown.
Will spot gold (XAU/USD) bounce from a short-term resistance in the present day?
Earlier than shifting on, ICYMI, yesterday’s watchlist checked out NZD/JPY’s rising channel forward of New Zealand’s retail gross sales report. Make sure to take a look at if it’s nonetheless a sound play!
And now for the headlines that rocked the markets within the final buying and selling periods:
Contemporary Market Headlines & Financial Information:
NZ retail gross sales enhance from -2.2% to a 0.4% q/q progress in Q3
Tokyo’s inflation up by 3.6% y/y in November, the quickest tempo in 40 years
China central financial institution to supply low-cost loans to assist builders’ bonds
Greenback headed for weekly loss as traders brace for slower Fed hikes
Oil inches up amid wrangling over Russian oil worth cap
Germany’s progress price revised greater from 0.3% to 0.4% q/q in Q3
Germany’s GfK client local weather at 7:00 am GMT
Use our new Foreign money Warmth Map to rapidly see a visible overview of the foreign exchange market’s worth motion! 🔥 🗺️
What to Watch: XAU/USD
There are not any top-tier financial reviews scheduled in the present day so merchants will doubtless concentrate on pricing in present market themes.
Particularly, USD bears may proceed to have a good time the potential for the Fed not being as hawkish in its subsequent conferences it was prior to now couple of months.
The prospect of slower tightening from the Fed has made gold bugs extra snug shopping for the safe-haven as a substitute of USD.
XAU/USD rose from its intraweek lows at 1,730 and is now buying and selling firmly above the 1,750 mark.
The gold-buying hit a snag at 1,760 nonetheless. As you may see, the realm traces up with a earlier assist and the 200 SMA on the 1-hour time-frame.
Did 1,760 maintain as resistance this time?
Bearish momentum beneath the resistance may drag XAU/USD again to its 1,730 lows.
But when we see a little bit of profit-taking earlier than the week ends, or if a information replace boosts the greenback towards its main counterparts, then XAU/USD may retest its 1,760 highs and even make new weekly highs.