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Gold prices fell to a two-week low on Thursday as signs of easing trade tensions boosted risk appetite and reduced golds safe-haven appeal, while a stronger dollar also weighed on gold prices. "The market remains confident that the United States will soon sign a lower tariff agreement with other countries, and this optimism, coupled with a stronger dollar, is weighing on gold prices," said Giovanni Staunovo, an analyst at UBS. Investors are waiting for Fridays non-farm payrolls report to gain further insight into the Feds policy direction. "A weak jobs report should support the Feds calls for further rate cuts this year and push gold prices back to $3,500 an ounce in the coming months," said Giovanni Staunovo.On May 1, institutional analysis pointed out that gold futures plummeted due to easing trade tensions and declining safe-haven demand. The strengthening of the US dollar further dampened enthusiasm for gold as a safe-haven asset and made dollar-denominated commodities more expensive for international buyers. The United States is likely to reach a trade agreement, and market optimism and risk appetite are rising. However, further losses may be limited because expectations of interest rate cuts have also been raised after the United States released a series of weak economic data. The US economy contracted by 0.3% in the first quarter. Lower interest rates usually stimulate demand for non-interest-bearing gold.Ukraines Foreign Minister: The EUs top diplomat has been informed of the mineral agreement reached with the United States.According to the Wall Street Journal: Citigroup hired Trumps former trade chief Robert Lighthizer.According to the Wall Street Journal: The U.S. government has commissioned L3Harris to completely transform a Boeing 747 once used by the Qatari government.

The AUD/USD Finds Support Around 0.7500 As Attention Turns to Australia's Unemployment Rate

Drake Hampton

Apr 13, 2022 10:10

  • The AUD/USD currency pair has sensed a pullback from 0.7500 ahead of Australia's unemployment rate announcement.

  • Investors are shrugging off stronger US inflation data, but interest rates are poised for a modest increase.

  • Australia's preliminary unemployment rate of 3.9 percent signals outperformance.

 

After a good positive comeback from Tuesday's low of 0.7400, the AUD/USD pair has had a little retreat to about 0.7500. The major has recovered following Tuesday's publication of US inflation. Market participants anticipated an 8.5 percent increase in the US Consumer Price Index (CPI), which prompted some bids in the antipodean.

 

Inflation at a multidecade high and a greater participation rate in the US labor market point to a major rate hike in May's monetary policy. Price pressures on essential items are weighing on the US economy, as evidenced by the US CPI ex-food and energy's weak performance. Inflation in the United States, excluding food and energy, was recorded at 6.5 percent in a mid-market estimate and preceding number.

 

Earlier in the day, the asset fell substantially from last week's high of 0.7662 after the Reserve Bank of Australia (RBA) decided to maintain the current interest rate and take a 'wait and see' strategy. The RBA's monetary policy insights revealed that the government has not yet experienced any constructive price pressures capable of pushing interest rates higher.

 

Market investors will closely monitor the Australian Unemployment Rate, which is due on Thursday, for additional guidance. A early estimate of Australia's unemployment rate reveals a decrease to 3.9 percent from a previous reading of 4%.

AUD/USD

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