Palladium Price News: XPD/USD regains $2,500 on softer USD

Palladium rebounds from two-month low, rises towards intraday top of late.
Vaccine optimism, mixed clues for Fed’s next move trigger DXY pullback from the key upside hurdle.
Virus woes escalate as markets await FOMC Minutes.

Anil Panchal FXStreet

Palladium (XPD/USD) tracks other commodities to the north, up 0.93% intraday around $2,505, as European traders brace for Wednesday’s tasks.

The precious metal dropped to the lowest since June on Tuesday before bouncing off $2,470. While the risk-off mood underpinned the US dollar strength and weighed down the XPD/USD prices, a pullback in the greenback seems to back the latest bounce.

That said, the US Dollar Index (DXY) prints 0.04% intraday losses despite recently picking up bids to 93.10, snapping a two-day downtrend.

Failures to cross the 93.20 technical hurdle could be linked to the greenback gauge’s latest pullback. Also on the same line were the mixed signals over the Fed’s next moves, from the latest Fedspeak and downbeat US Retail Sales. On Tuesday, Minneapolis Fed President Neel Kashkari’s repeat of tapering comments battles Fed Chairman Jerome Powell’s cautious optimism after the US Retail Sales for July dropped below -0.3% expected and +0.7% previous to -1.1% MoM.

It’s worth noting that the worsening virus conditions, especially in the Asia–Pacific region, could keep challenging the palladium buyers. The latest updates suggest that New Zealand’s fresh infections jump to seven from one the previous day whereas Australia’s New South Wales report all-time high covid cases, propelling the national count to the fresh top since August 2020 with near 700 infections. Elsewhere, China’s COVID-19 cases eased but the fears that the US weekly infections will jump to 200,000 and the UK’s highest virus-led death toll since March keep highlighting Delta covid variant woes.

Amid these plays, the US 10-year Treasury yields print mild gains and the US stock futures also reverse the early Asian losses by the press time.

Considering the market’s indecision and the US dollar’s sluggish moves, today’s FOMC minutes will be closely observed for fresh impulse as challenges to tighter monetary policy could favor the XPD/USD buyers.

Technical analysis

Although daily closing below 200-DMA, around $2,580, favors palladium bears, a broad horizontal area comprising multiple levels marked since early January 2021, between $2,530 and $2,460, challenges the quote’s short-term moves.

Additional important levels

Overview
Today last price	2503.1
Today Daily Change	22.98
Today Daily Change %	0.93%
Today daily open	2480.12

Trends
Daily SMA20	2620.3
Daily SMA50	2669.11
Daily SMA100	2752.55
Daily SMA200	2576.72

Levels
Previous Daily High	2600.7
Previous Daily Low	2470.78
Previous Weekly High	2648.22
Previous Weekly Low	2588.18
Previous Monthly High	2882.78
Previous Monthly Low	2571.07
Daily Fibonacci 38.2%	2520.41
Daily Fibonacci 61.8%	2551.07
Daily Pivot Point S1	2433.7
Daily Pivot Point S2	2387.28
Daily Pivot Point S3	2303.78
Daily Pivot Point R1	2563.62
Daily Pivot Point R2	2647.12
Daily Pivot Point R3	2693.54

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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