The U.S. stock indexes advanced to record closes again as investors' worries about China's coronavirus outbreak seemed abating. While giving testimony before a Senate committee, Federal Reserve Chairman Jerome Powell said the central bank would fight the next economic downturn using quantitative easing.
A day before, the U.S. government announced a budget shortfall of 32.6 billion dollars for January, significantly over the proposed deficit of 10.0 billion dollars. Later today, the Labor Department will post Consumer Price Index for January (+0.2% on month expected), and Initial Jobless Claims for the week ended February 8 (210,000 expected).
XAU/USD - Bullish Channel Putting Up Resistance
On Thursday, the yellow metal gold prices traded bullish following a sharp increase in new coronavirus incidents and deaths in China, which discouraged risk sentiment, prompting investors to buy the metal.
The yellow metal gold surged by 0.6% to trade around $1,576.50 per ounce. Following news of a drop in new coronavirus cases, China announced there had been a record growth in deaths and cases under an original diagnostic system, a potential fulmination to the global economic risk.
In addition to this, the greenback slid from a four-month top versus a bucket of currencies, which is increasing gold's demand further. China's Hubei region also continued a work suspension and ordered all companies not to resume ere the end of February 20.
XAU/USD - Daily Technical Levels
Pivot Point 1568.25
XAU/USD - Daily Trade Sentiment
Gold has created a higher high chart pattern on the hourly graph, which is suggesting chances of more buying in the XAUUSD. Gold's immediate support prevails at 1,572, along with resistance around 1,576. While the bullish breakout of 1,576 can open additional opportunity for buying unto 1,582.
USD/CAD - EMA Crossover Leading the Pair
The USD/CAD soared 0.2% to trade at 1.3257. USD/CAD is recording marginal increases, having scored a low of 1.3236 in the late trade.
The CAD is striving even though BOC's Poloz announced the economy is in the right place. The restored coronavirus fear is expected to keep the CAD buy at nook.
The Canadian dollar is trying to attract bids despite upbeat remarks by Bank of Canada's head Poloz. The governor was out on the lines a several minutes ere press time, saying that the Canadian economy is in a moderately good position, and the interest rates would have been much weaker without the fiscal incentive.
The Oil prices rebounded further amid reduced concerns about the coronavirus outbreak's impact against global demand for oil. U.S. Nymex crude oil futures advanced a further 2.5% to $51.17 a barrel, and Brent jumped 3.3% to $55.79 a barrel. Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) lowered its 2020 global oil demand growth forecast by 230,000 barrels to 0.99 million barrels a day, citing an expected reduction in fuel use in China due to the coronavirus outbreak.
USD/CAD- Daily Technical Levels
Pivot Point 1.3302
USD/CAD- Daily Trade Sentiment
The USD/CAD is trading in a bearish mode in the track of upward channel breakout. The pair is trading bearish nearby 1.3265, moving under an immediate support line of 1.3300 due to weakness in the U.S. dollar. At the moment, 1.3300 is working as a resistance level for the USD/CAD currency pair.
The USD/CAD is still trading below the 50 periods EMA at 1.3266, which is expected to drive further selling in Aussie unto 1.3219. The RSI and Stochastics are staying in the selling zone today. Let's look for selling trades under 1.3266 as the pair can fall unto 1.3240 and 1.3219 beneath this level.
AUD/USD – Triangle Pattern Breakout
The AUD/USD is trading bullish and stops its recent 3-days recovery streak mainly due to fresh risk-off market sentiment in the wake of renewed coronavirus fears. The AUD/USD is trading at 0.6722 and consolidates in the range between the 0.6707 - 0.6739.
The AUD/USD halts its recent recovery move from over a decade low and came under some fresh selling pressure on Thursday. Renewed concerns over the outbreak of the deadly coronavirus are the key factors behind the burdened market.
The coronavirus back in action, while the latest report came that coronavirus infected and dead people from Hubei registered a sharp rise due to the change in the updated diagnostic standard. The numbers mention 14,840 new coronavirus cases, with the death toll rising by 242 to 1,310 at the end of February 12, 2020.
The greenback is getting support as a safe-haven flow from the coronavirus fears. Moreover, the United States economy is performing almost strong, as shown last week's nonfarm payroll report.
Therefore, it will be useful to wait to place any positioning before confirming that the recent improving bounce might have already losing momentum and positioning for the resumption of the pair's prior bearish trend.
AUD/USD - Technical Levels
Pivot Point 0.6689
AUD/USD - Daily Trade Sentiment
On Thursday, the AUD/USD continues trading bullish at 0.6741 after testing the support level of 0.67150, which is extended by the previously violated downward channel.
The buying trend continuation is expected to lead the AUD/USD exchange towards 0.6770. Taking a glance at the RSI and Stochastics, the Aussie dollar heading into the buying zone, crossing over the 50 line, which signifies that the bullish trend can be seen in the AUD/USD currency pair. Let's take buying trades above 0.6745 today.
All the best for the New York session!
Risk Warning: CFD and Spot Forex trading both come with a high degree of risk. You must be prepared to sustain a total loss of any funds deposited with us, as well as any additional losses, charges, or other costs we incur in recovering any payment from you. Given the possibility of losing more than your entire investment, speculation in certain investments should only be conducted with risk capital funds that if lost will not significantly affect your personal or institution’s financial well-being. Before deciding to trade the products offered by us, you should carefully consider your objectives, financial situation, needs and level of experience. You should also be aware of all the risks associated with trading on margin.