The gold could be underpinned for another day ahead of the FOMC meeting outcome today which is expected show increasing worries about the global economic slowdown to hint holding of the interest rate with no hike in the first quarter of this year, while the doubts about the US manufacturing sector ability to expand this harsh winter are rising.
Yesterday auction of UST 2YR issuance could highlight this current lower prospects of watching higher interest rate in US, as it ended to 0.86% yield, after ending the previous auction on it on 1.056% yield on last Dec. 28 following last FOMC meeting when the Fed decided to raise its funds rate by 0.25% expecting reaching 1.375% at the end of 2016.
The gold could keep its bullish tone this week to be traded now above $1120 for the first time since last Nov. 4, despite the improving of US equities market amid oil prices rebound, upbeating Q4 earning reports and higher than expected US consumer confidence in January reached 98.1, while the consensus was referring to 96.6 after 96.3 in December.
The Asian equities indexes could follow their US counterparts, after being exposed to massive falling yesterday with the oil benchmarks retreating from $32.80 area to be traded again below 30$.
Instrument in Focus: AUDUSD
AUD could be boosted during the Asian session, after the release of higher than expected inflation figures in the fourth quarter of last year. CPI Q4 rose yearly by 1.7%, while the market was waiting for 1.6%, after 1.5% in the third quarter showing lower probability of having further stimulating measurements by RBA which has kept the interest rate unchanged at 2% since last May. 5.
AUDUSD is now trading near 0.7030, after rebounding from 0.6916 whereas it has formed higher low above its bottom of this Jan. 15 at 0.6825.
AUDUSD is still facing difficulty to get over 0.7046 which set it back twice this month AUDUSD daily Parabolic SAR (step 0.02, maximum 0.2) is now its fifth day of being below the trading rate reading today 0.6851.
AUDUSD daily RSI-14 is referring now to existence in its neutral area reading now 48.390 and also its daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility is having its main line now in the neutral region but close to the overbought area above 80 reading now 75.755 and also its signal line which is referring to 74.834
Important levels: Daily SMA50 @ 0.7148, Daily SMA100 @ 0.7146 and Daily SMA200 @ 0.7349
S&R:
S1: 0.6916
S2: 0.6825
S3: 0.6769
R1: 0.7046
R2: 0.7084
R3: 0.7120
AUDUSD Daily Chart:
Commodities: Gold
The gold could find more demand, after getting over its daily SMA100 following surpassing $1112.75 which has been its highest reached level since last Nov. 4.
The gold could gather momentum, after holding above $1071.22 which could help the gold to bounce up again above its daily SMA50 forming a floor above $1057.98 which drove the gold to start being above its daily Parabolic SAR (step 0.02, maximum 0.2) for 18 consecutive days reading today $1091.15.
XAUUSD daily RSI-14 is referring now to existence in its neutral area reading now 65.141, while its daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility could have now its main line in the overbought area above 80 reading 92.548 leading to the upside its signal line which is now also in the overbought area reading 82.631.
Important levels: Daily SMA50 @ $1078.54, Daily SMA100 @ $1105.67 and Daily SMA200 @ $1132.27
S&R:
S1: $1071.22
S2: $1057.98
S3: $1046.08
R1: $1123
R2: $1138.05
R3: $1149.84
XAUUSD Daily chart:
Hot instrument: USDCAD
The oil benchmarks could lead the movement of USDCAD to watch it forming lower high at 1.4323 with WTI having higher low near $29.25.
CAD has been exposed to massive selling across the broad in the beginning weeks of this year tracking the oil prices slide which can erode the Canadian exports value causing financial pressure on the Canadian economy.
On the oil prices slide, BOC has revised down its 2016 GDP forecast to only 1.4% from 2% last week but it decided to disappoint the odds of watching another interest rate cutting by keeping the interest rate unchanged at 0.5% driving USDCAD down below 1.45 to start having its daily Parabolic SAR (step 0.02, maximum 0.2) above the trading rate and today is the day number 5 of continued being above the trading rate reading 1.4606.
USDCAD daily RSI-14 is in the middle of the neutral territory reading 50.359, while its daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility is having now its main line in the oversold area below 20 area reading 19.320 and also its signal line which is reading now 15.811.
Important levels: Daily SMA50 @ 1.3837, Daily SMA100 @ 1.3506 and Daily SMA200 @ 1.3074
S&R:
S1: 1.4042
S2: 1.3895
S3: 1.3811
R1: 1.4323
R2: 1.4687
R3: 1.4946
USDCAD Daily chart:
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