EUR/USD 1.13201
-0.072%
Gold 3220.63
-2.058%
Oil 56.490
-2.494%
USD/JPY 144.333
0.865%
GBP/USD 1.33207
-0.075%
GBP/JPY 192.268
0.831%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
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.

AUDUSD fluctuates near 0.6670 support as higher Treasury yields bolster US Dollar rebound

Daniel Rogers

Nov 18, 2022 15:14

 截屏2022-11-18 上午11.27.07.png

 

AUDUSD stalls at 0.6690 following a two-day decline as bears seek fresh signals to end a four-week uptrend. Friday's light economic calendar offers a challenge for sellers of the Australian dollar throughout the Asian trading session. Notwithstanding, the US Dollar's recovery, aided by increased Treasury yields, mixes with the market's pessimistic outlook to keep pair sellers upbeat.

 

US Dollar Index (DXY) appears to be recovering from a three-month low hit earlier in the week, as a result of recent assertive words from US Federal Reserve (Fed) officials and better top-tier data from the United States. The dollar disregards Thursday's conflicting secondary numbers as a result.

 

The solid Retail Sales and Producer Price Index (PPI) numbers for the month of October appeared to favor Fed hawks. However, James Bullard, president of the Federal Reserve Bank of St. Louis, remarked on Thursday that the US Federal Reserve's (Fed) monetary policy is not now deemed restrictive enough to reduce inflation. Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, issued his most recent comments along the same vein. The Federal Reserve's Kashkari stated, "With inflation still high and monetary policy tightening already underway, it is unknown how high the US central bank will have to raise its policy rate."

 

In terms of data, the US Philadelphia Fed Manufacturing Index declined to -19.4, compared to -6.2 market estimates and -8.8 previously. In addition, Housing Starts decreased by 4.2% month-over-month in October, following a 1.3% decline in September, and Building Permits decreased by 2.4%, compared to a 1.4% increase the previous month. In addition, Jobless Claims decreased to 222K for the week ending November 11 compared to the 225K predicted and upwardly revised 226K the previous week.

 

Domestically, Australia's Employment Change increased by 32,2K versus 15K market forecasts and 0.9K previously, while the Unemployment Rate decreased to 3.4% from 3.5% previously and 3.5% forecasts. Especially with the publication of the solid Wage Price Index, the employment data gained a boost in their ability to attract buyers. However, it appears that previous dovish remarks from Reserve Bank of Australia (RBA) officials have kept AUDUSD purchasers on the board.

 

In addition, elevated tensions between Russia and Ukraine as a result of missile strikes against Poland and growing Covid counts in China weighed on market sentiment and the risk-barometer pair.

 

Wall Street ended in the red, echoing sentiment, while 10-year Treasury yields rose from a six-week low.

 

A lack of significant data/events could allow bears to catch their breath, but risk-averse sentiment and hawkish Fed concerns could drive the AUDUSD price close to the weekly loss.

Suggestion