The U.S. indices closed mixed for a second day on Wednesday as earnings season slows down. Meanwhile, the media reported that U.S. President Donald Trump and Chinese leader Xi Jinping might not be able to sign the first phase trade deal until December. The Dow Jones Industrial Average was flat at 27,492, the S&P 500 edged up 2 points (+0.1%) to 3,076, while the Nasdaq Composite lost 24 points to 8,410.
Later today, economists expect initial jobless claims to drop to 215,000 for the week ended Nov 02 from 218,000 in the prior week. Continuing claims are expected to fall to 1.68 million for the week ended Oct 26 from 1.69 million the prior week.
European stocks remained firm, with the Stoxx Europe 600 edging up 0.2%, Germany's DAX climbing 0.2%, France's CAC gaining 0.3%, and the U.K.'s FTSE 100 rising 0.1%.
XAU/USD - Bullish Trendline Supports
On Thursday, the precious metal gold crept down, losing some of its safe-haven demands after China stated that it had coincided with the United States in the preceding two weeks to a phased reversal of the additional tariffs forced during their months-long trade war.
Gold sank 0.2% at $1,487.27 per ounce after placing a high around $1,490 during the Asian session. Senior officials of the Trump administration stated that a conference between U.S. and Chinese representatives to sign an interim trade settlement could be postponed until December.
The trade war among the world's two greatest nations for the preceding sixteen months has agitated financial markets and heightened concerns of an economic slowdown, supporting the safe-haven gold as its prices rose nearly 16% in 2019.
XAU/USD - Daily Technical Levels
|
Support |
Pivot Point |
Resistance |
|
1484.27 |
1489.31 |
1495.6 |
|
1477.98 |
1500.64 |
|
|
1466.65 |
1511.97 |
Gold - XAU/USD- Daily Trade Sentiment
The XAU/USD traded as forecasted in our previous report. The precious metal completed the bullish retracement of 23.6% at 1,487 mark and 38.2% Fibonacci of 1,494.
At the moment, this 1,494 is extending substantial hurdles to gold. Technically, the XAU/USD can sail further until 50 SMA resistance and 50% Fibo mark of 1,497 range. Under this mark, traders can assume a bearish reversal in the prices of gold.
USD/CAD- Dollar Gains over Eased Trade War
The USD/CAD is trading slightly bearish at 1.3160, falling from 1.3200 high today. The Bank of Canada (BOC) is one of the central banks that are avoiding the interest rate cuts this year. Despite determined slowing global GDP growth headwinds, the Canadian economy has remained flexible and widely supported amid BOC's hawkish monetary policy stance.
The Canadian dollar surged to around a weekly high versus its U.S. dollar economic figures revealed a reduction in Canada's trade deficiency and traders became more confident of a trade agreement between the United States and China.
USD/CAD- Daily Technical Levels
|
Support |
Pivot Point |
Resistance |
|
1.3122 |
1.315 |
1.3185 |
|
1.3087 |
1.3213 |
|
|
1.3024 |
1.3276 |
USD/CAD - Daily Trade Sentiment
The USD/CAD continues to trade within the same trading range of 1.3180 - 1.3120 as a stronger dollar fails to drive move buying in the commodity currency. The crude oil prices also remain stronger due to which, the Loonie also gained bullish moment. For now, the USD/CAD may trade bullish only above 1.3175 resistance level to target 1.3220.
AUD/USD – Fibonacci Supports
The AUD/USD dipped 0.3% to 0.6877. This morning, government data showed that Australia recorded a trade surplus of 7.18 billion Australian dollars in September (A$5.05 billion surpluses expected).
The AUD/USD currency pair still found on the bearish track even after the positive numbers of Australian trade data. In short, the pair continues its losing streak. The country's trade surplus increased to A$7,180 million in September, crossed the expected figures of A$5,000 million by a big margin. Moreover, the trade surplus stood at A$5,926 million in August.
Exports or outbound shipments increased by 3% during September, having decreased by 3% during August. In the meantime, the imports or inbound shipments also increased by 3%. The bullish trend in the imports will likely be considered a sign the domestic demand is holding up well after the Federal Reserve Bank of Australia's rate cuts. The AUD/USD currency pair still stood at the bearish track near 0.6877.
The AUD/USD currency pair will likely drop more due to the greenback is on the bullish track and taking strong buying in the wake of the United States and China trade fears. As the report came that the round-1 deal could be signed in December while another statement came from unknown sources that the United States will not increase the tariff on Chinese goods scheduled to take place from Dec 15.
At the data front, the weekly reading of the United States' initial Jobless Claims and speech from the President and CEO of the Federal Reserve Bank of Dallas, Robert Kaplan, will also keep ner focus.
AUD/USD - Technical Levels
|
Support |
Pivot Point |
Resistance |
|
0.6866 |
0.6887 |
0.6905 |
|
0.6848 |
0.6926 |
|
|
0.6809 |
0.6965 |
AUD/USD - Daily Trade Sentiment
The AUD/USD slipped lower to test 50% Fibonacci retracement level of 0.6870 as the stronger dollar continued to dominate the market. At the moment, the dollar is getting weaker in the wake of faded trade deal risks. The Aussie is gaining bullish momentum, especially after closing a bullish engulfing pattern on the 4 hourly charts. The AUD/USD may trade bullish to target 0.6887 to target 0.6925 level today.
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.
Recommended Content
Editors’ Picks
EUR/USD holds above 1.0700 ahead of key US data
EUR/USD trades in a tight range above 1.0700 in the early European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays above 156.00 after BoJ Governor Ueda's comments
USD/JPY holds above 156.00 after surging above this level with the initial reaction to the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.