The U.S. dollar steadied against most major currencies on Thanksgiving day, with the ICE Dollar Index closing relatively unchanged on the day at 98.32. The USD/JPY was little changed at 109.52, and the USD/CAD was flat at 1.3281.
Traders will focus on Canada's third-quarter GDP data due later today (+1.3% annualized on quarter expected). Meanwhile, the AUD/USD was down 0.1% to 0.6768.
XAU/USD - Gold Underpins Over Dinimised Haven Appeal
The safe-haven-metal prices are flashing green and ticked higher as weakening Asian equity markets due to Hong Kong's concerns. Even after today's gains n the gold prices, the yellow-meal is set to record its worst month in 3-years. As we all well aware, the deal between the United States and China was very close to happening, so that's why uncertainty level was low as well, and traders were invest in the risk-on market.
However, anxieties escalated this week after U.S. President signed two bills that support pro-democracy protestors in Hong Kong. Whereas the move is mostly symbolic at this stage, it complicated the trade talks progress and irritated Beijing. That could hurt the trade matters.
The market of gold is divided as previously most traders were thinking that a trade deal is very close to happening, and now they are not sure which side it is going to go, and that reflects in the trading prices.
The U.S. Dollar Index Futures, which usually moves in directions opposite to the yellow metal, was little changed today at 98.260.
It should be noted that the Stock and bond markets in the U.S. are closed on Thursday for a holiday.
XAU/USD - Daily Technical Levels
Pivot Point 1456.67
Gold - XAU/USD- Daily Trade Sentiment
The technical side of gold hasn't changed much as investors stayed out of the market in the wake of the U.S. Thanksgiving holiday. The precious metal extends trading at 1,456 with a bearish bias. Taking a glance at the 4-hour chart, you can observe a descending triangle, which is prolonging resistance at 1,462 accompanying the 50 EMA, which also lingers nearby 1,462 mark.
On the downside, gold is expected to find next support at 1,452 range, and the breach of this could open additional selling unto 1,446. Overall, the volatility is anticipated to remain softer in the absence of major economic events.
USD/JPY - Resistance Become Support
The pair USD/JPY closed at 109.503 after placing a high of 109.554 and a low of 109.331. At 4:50 GMT, the Retail Sales from Japan showed a drop to -7.1% from the previous 9.2%. The negative retail sales weighed on Japanese Yen on Thursday. At 9:00 GMT, the governor of Bank of Japan, Haruhiko Kuroda, said on Thursday that in maintaining financial stability, the central bank must face the new issues of climate-related risks.
He said that Natural disasters like a strong typhoon that struck Japan in October could erode asset and collateral value, and this associated risk can pose a significant challenge for financial institutions.
He said that climate-related risks are different from other risks because they have a longer-term impact in the sense that the effects of these risks last longer than other financial risks due to its less predictable nature. He added that it was, therefore, necessary to thoroughly investigate and analyze the impact of climate-related risks.
On the other hand, the U.S. President signed the Legislation in favor of Hong Kong protestors on Thursday. He passed the Hong Kong Human Rights & Democracy Act as law and made the Chinese government angry.
China has threatened to retaliate with firm countermeasures, and this has created less demand for riskier assets like USD/JPY in the market and more for safe-haven assets.
U.S. Dollar was mute on Thursday due to Thanksgiving Holiday.
USD/JPY - Daily Technical Levels
Pivot Point 109.42
USD/JPY - Daily Trade Sentiment
Just like other currency pairs, the USD/JPY is also exhibiting choppy sessions, while the pair trades around 109.450. On the technical side, the USD/JPY is consolidating in a bullish mode over 109.400; the resistance becomes support level. The 50 EMA is suggesting buying along with all the candles which have concluded above 109.400.
The leading indicators, such as RSI and MACD, are still operating in the buy zone, underpinning the support to the USD/JPY. Consider staying bullish above 109.42 to target 109.700 and 109.900 resistance levels.
AUD/USD – Descending Triangle Violates
The AUD/USD pair closed at 0.67673 after placing a high of 0.67777 and a low of 0.67589. Overall the movement for pair remained Bearish that day.
At 5:30 GMT, the Private Capital Expenditure for the 3rd quarter from the Australian Bureau of Statistics came in negative as -0.2% against the expectations of 0.0%, which weighed on the single currency – Aussie.
The weaker than expected Private Capital Expenditure gave pressure on the movement of AUD/USD on Thursday. Adding in the downward trend of AUD/USD was the latest headline on Thursday in which U.S. President Donald Trump approved the Hong Kong Human Rights & Democracy Act as a law. Trump-supporting Hong Kong protestors against China in such a sensitive period where the negotiations of the phase-one trade deal were in progress, gave a boost to uncertainty.
The market reacted on this news amid the increased uncertainty over the completion of the US-China phase one trade deal. The Sino-American relations have been gone back & forth from the past 16 months due to trade war.
China, in response to Legislation of act, warned the U.S. that it would retaliate with firm countermeasures. Chinese & Hong Kong stocks were lowered due to this news and are the largest trading partner of China, Australian currency also suffered and moved in Bearish trend that day.
There will be no release of macroeconomic data from the United States on Friday, but from Australia, the Private Sector Credit and New Home Sales would be released.
AUD/USD - Technical Levels
Pivot Point 0.6779
AUD/USD - Daily Trade Sentiment
Taking a look at the 4-hour chart, the AUD/USD continues to trade in a descending triangle pattern, which is expected to remain bearish under 0.6780.
Traders are waiting for solid fundamentals to drive a bullish or bearish direction in the Aussie pair. In case, the AUD/USD violates and concludes below 0.6768, the pair exhibit further selling trend until 0.6740 and 0.6720.
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