The U.S. dollar index soared versus the safe-haven assets such as Japanese yen, gold, and Swiss franc on Thursday, after being supported by the remarks from a Chinese Commerce Ministry official that suggested the world's two greatest markets are crawling closer to a trade agreement.
Regarding U.S. economic data, initial jobless claims fell to 211,000 for the week ending Nov. 2 (215,000 estimated) from 219,000 in the prior week. Later today, economists expect the University of Michigan Consumer Sentiment Index to be flat on the month at 95.5 in November.
European stocks traded mostly higher, along with the Stoxx Europe 600 climbing 0.4%. Germany's DAX rose 0.8%, France's CAC advanced 0.4%, and the U.K.'s FTSE 100 was up 0.1%.
The benchmark U.S. 10-year Treasury yield rallied to a three-month high of 1.918% from 1.832% in the prior session, the biggest daily gain since the day after President Donald Trump was elected.
XAU/USD - Bullish Trendline Supports
The safe-haven metal prices inched up by 0.3%, but the overall sentiment is still bearish due to the United States' and China's optimism.
The safe-haven metal prices hit the three-month lows in the previous trading session and its biggest losing streak since 2017, mainly due to the report of removing tariffs with the United States to try and get the 1st phase of their trade deal done.
Notably, the Stock markets in the U.S. surged after the news, while Chinese stocks also gained today.
Another reason behind the sending gold prices lower this week was the news that the People's Bank of China, which had been a consistent accumulator of bullion, failed to add to holdings again in October, according to data on Thursday.
As of now, the gold prices slightly increased on the weekend and made on the overnight late increase from one-month lows.
During the Thursday, the yellow metal was currently trading at $1,468 per Oz, showing a 1.48% drop on the day to hit a low of $1,460 earlier today. That was the lowest level since Oct. 1.
XAU/USD - Daily Technical Levels
Gold - XAU/USD- Daily Trade Sentiment
Gold prices declined sharply due to robust greenback and relaxed in the trade war between the U.S. and China. It has disrupted the triple bottom mark of 1,479. Right now, it's in the oversold zone, and sellers seem to be drained.
Hence, we may observe bullish bias over 1,467 until 1,474 level, and under this, gold may proceed to fall.
USD/CAD- Stronger Dollar PLays
On Friday, the commodity currency pair USD/CAD is under the spotlight as the Canadian economy is due to report the latest Canadian jobs report at 12:30 GMT. Correspondingly, USD/CAD is inclined to encountering an above-average deviation in the USD/CAD exchange rate, reflecting the high-impact nature of employment figures.
The USD/CAD is currently floating around the mid-point retracement of its most up-to-date bearish support, and Friday's economic figures could present forex traders with enough confidence to carry the USD/CAD pair toward the upper or lower ends of it's trading between 1.3133-1.3221.
Today, the key issue will be whether a recovery in private payrolls (which dropped 21k last month) is on the boards. Should this not be the situation, the observed risk of a rate cut in the upcoming months will likely increase if the Canadian labor market reports more than a 5.5% unemployment rate and less than 14.7K unemployment change.
USD/CAD- Daily Technical Levels
USD/CAD - Daily Trade Sentiment
The USD/CAD has violated the long-held trading range of 1.3180 - 1.3120 as a stronger dollar continues to rule the market. Besides, the bearish trend in crude oil prices also weighs on the Canadian dollar. At the moment, the USD/CAD may trade bullish above 1.3195 to target 1.3220 and 1.3245 while support stays around 1.3175.
AUD/USD – Double Bottom Support
AUD/USD currency pair seems not impressed by the report of unexpected better China trade data. So the AUD/USD currency pair still representing losses on the day.
As of writing, the AUD/USD currency pair currently trading at 06882, having gained just five-pips post-China data. The AUD/USD currency pair is still representing 0.22% declines on the day.
The nation's trade balance widened to $42.81 billion in October, bettering the estimate of $40.10 billion. Imports dropped 6.4% year-on-year in USD terms and by 0.4% in CNY terms. Meanwhile, exports or outbound shipments fell 0.9% in USD terms but rose 4.9% in CNY terms.
Looking forward, the Australian Dollar may take a buying possibly due to Westpac's boss's reports about the more interest rate cuts should be delivered by the Reserve Bank of Australia, as well as this news could affect the economy.
The Reserve Bank of Statement of monetary policy released at the starting of the day also said that an additional rate cut might convey an overtly negative view on the economy.
At the Sino-US trade front, the AUD/USD currency pair to stay high above 0.69 due to the United States and China trade optimism. A White House spokesman said that the White House is very confident that a trade deal with China will be reached on positive outcomes soon.
AUD/USD - Technical Levels
AUD/USD - Daily Trade Sentiment
The AUD/USD dropped lower to reach a 50% Fibonacci retracement mark of 0.6870. Most of the selling in the AUD/USD triggered due to the stronger dollar, which continues to dominate the market.
Right now, the U.S. dollar is getting weaker as traders are doing profit takings. The AUD/USD may trade bearish today to target 0.6865, where the violation of this level can extend sell-off until 0.6825 level today.
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