The U.S. greenback dropped versus the Japanese yen and the Swiss franc, traditional safe-haven securities, following media news that trade discussions between the U.S. and China had "hit a snag" over farm purchases.
U.S. stocks closed mixed. Both the Dow Jones Industrial Average (+92 points or 0.3% to 27783) and the S&P 500 (+2 points or 0.1% to 3094) ended at record highs, while the Nasdaq Composite edged down 3 points to 8482.
European stocks were broadly lower, with the Stoxx Europe 600 declining 0.3%. Germany's DAX fell 0.4%, and both the U.K.'s FTSE 100 and France's CAC were down 0.2%.
The U.S. government bond prices increased, pressing the benchmark U.S. 10-year Treasury yield down to 1.870% from 1.909% Tuesday.
XAU/USD - US-China Trade Issue Support Gold Prices
During the early European session, Gold prices crept higher as Asian equities turned lower after weaker-than-expected economic data out of China weighed on risk appetite, boosting demand for safe-haven assets.
The Asian stocks dipped following China's manufacturing production rose significantly slower than anticipated in October, as instability in the global and domestic market and the drawn-out Sino-U.S. trade war pressed on activity in the world's 2nd largest economy.
China's Commerce Ministry announced cutting tariffs is an an important provision for seizing a trade deal with the U.S., a day following U.S. President Donald Trump warned to ramp up duties on Chinese assets if the countries abandoned to enter a deal on trade.
On Wednesday, the U.S. Federal Reserve Chair Jerome Powell indicated the Joint Economic Committee that adverse interest rates asked by President Trump are not suitable for the U.S. economy at the moment. The news placed a bearish pressure on gold for some time, but bulls drag gold prices higher.
XAU/USD - Daily Technical Levels
Gold - XAU/USD- Daily Trade Sentiment
On Thursday, gold prices trade bullish as three white soldiers that appeared on the 4-hour graph have driven the bullish trend in the gold, and it looking for a level of 1,466.
Right now, gold is enduring a difficult time breaking the double top resistance mark of 1,467 level, and gold has also created several Doji and test bar candles, which are indicating that bulls are tired and need a lift from fundamentals to crack above.
The bullish violation of 1,467 is expected to reveal a further opportunity for buying unto 1,472 and 1,476. On the other side, failure to violate the above 1,467 can prompt sell-off until 1,457.
EUR/USD - German Prelim GDP Soars
On Thursday, the EUR/USD placed a minor gain to end a five-day losing streak during the Asian session. But the bullish bias could not hold up, and the EUR/USD slipped to target 1.0990. It's been a busy day for Euro from fundamental's viewpoint as the key stats due out of the Eurozone.
The fundamentals cover Germany's GDP figures for the 3rd quarter and the Eurozone's 2nd survey numbers.
Concluded October inflation numbers are also expected out of France and Spain that will be expected to have a softening influence on the EUR.
The price-adjusted GDP (gross domestic product) in Germany rose by 0.1% in the second quarter of 2019 following an adjustment for seasonal and calendar changes.
EUR/USD- Daily Technical Levels
EUR/USD - Daily Trade Sentiment
The EUR/USD is reaching support around 1.0990, the beforehand recommended mark. The possibilities of a bullish turn around remain moderately firm here. Alternatively, the next resistance lingers at 1.1050 and 1.1080 later on. However, in any situation, a bearish trend and breakout of 1.0990 can influence the EUR/USD towards 1.0955 level.
AUD/USD – Fibonacci Supports
The AUD/USD currency pair hit the 4-weeks low mainly due to the Chinas data. The AUD/USD pairs traders got disappointment by the Chinas data and downbeat Aussi jobs report. As of writing, the currency pair currently trading at 0.6800.
China's October month Industrial Production (YoY) increased 4.7% against 5.4% estimate and 5.8% previous, whereas Retail Sales rose 7.2% against 7.9% expected and 7.8% previous yearly. Moreover, Fixed Asset Investment also declined to 5.2% from 5.4% expected and prior.
That said, the United States' ten-year treasury yields found around 1.90%, whereas S&P 500 Futures cheer expectations of a further monetary policy rate cut from global central banks, based on the recently downbeat data.
Looking forward, the 2nd testimony from the Federal Reserve Chairman Jerome Powell will be closely observed by the market. The Federal Reserve Chairman repeated the previous comments during his initial appearance on Wednesday.
AUD/USD - Technical Levels
AUD/USD - Daily Trade Sentiment
The current trend of the AUD/USD has been bearish since the violation of 50% and 61.8% Fibonacci retracement level of 0.6850.
The closing of bearish engulfing candle below 0.6850 level is suggesting the chances of a bearish reversal in the AUD/USD. Furthermore, the MACD and RSI are also indicating a bearish trend in the AUD/USD. The Aussie may target 0.6760 and even 0.6745 later in the day.
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