The XAU/USD pair gained traction and rose above the critical $1300 mark for the first time since September 26 but struggled to stretch its upside. As of writing, the pair was trading at $1300.50, adding $7, or 0.56%, on the day.
The pair's recent upsurge seems to be a product of a broad-based USD sell-off that had been triggered after macroeconomic data released from the U.S. After contracting by 0.1% in August, retail sales in the U.S. rose by 1.6% in September, missing the market estimate of 1.7%. On the other hand, although annual inflation measured by the consumer price index advanced to 2.2% in September fueled by the rising oil prices, it failed to meet the experts' expectation of 2.3%. Furthermore, real average weekly earnings eased to 0.6% from 1.0% on a yearly basis.
- US: Retail sales for Sep 2017 were $483.9 billion, an increase of 1.6% from the previous month
- US: CPI for all items increases 0.5% in September as gasoline index rises sharply
With the initial reaction to the data, the US Dollar Index dropped to its lowest level in more than two weeks at 92.59. At the moment, the index is at 92.70, losing 0.27% on the day.
The next data from the U.S. will be the UoM Consumer Sentiment Index at the top of the hour. Later in the session, FOMC member Evans, Kaplan, and Powell will be delivering speeches.
Technical outlook
The initial hurdle for the pair aligns at $1302 (daily high/50-DMA) ahead of $1313 (Sep. 26 high) and $1320 (Sep. 18 high). On the downside, short-term supports could be seen at $1285 (20-DMA), $1275 (Oct. 9 low) and $1260 (Oct. 6 low). With today's rise, the CCI indicator on the daily graph broke above the 100 mark, suggesting that the bullish momentum is building up.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.