In this article, we have covered the highlights of global market news about the Gold Price, UK ILO, AUDUSD and USD/CAD.
Gold Price seeks a comeback over $1,700 as DXY drifts sideways, and a comeback seems improbable.
The price of gold (XAUUSD) has made a slight recovery after being muted throughout the Asian trading day. After reaching a low of $1,705.55, the price of the precious metal is now holding around an intraday high of $1,710.21, which it reached earlier today. The precious metal has not moved much over the previous week, with bidding occurring in a broad range between $1,697.64 and $1,723.83 despite the absence of any possible trigger that may steer the price in a different direction.
After a rise in the other direction, the U.S. dollar index (DXY) shows weariness, indicating buyers are losing interest. After falling to a low of 106.92 on Tuesday, the asset gradually recovered its value. The bearish mood from Monday has not carried over into Tuesday trading so far; nonetheless, it seems that a move down is necessary given that the DXY is having difficulty establishing itself above 107.50. A sell-off in the asset is anticipated to take place if it makes a move lower than Monday’s low, which was at 106.92.
The UK ILO unemployment rate held steady at 3.8% in May, matching expectations.
The United Kingdom’s Office for National Statistics (ONS) reported on Tuesday that the country’s official unemployment rate was 3.8 percent in May, a decrease from the previous month’s rate of 3.8 percent and the anticipated rate of 3.8 percent. Additionally, the claimant count change showed a decrease from the previous month.
Compared to the previous month’s figure of -34.7K, the number of individuals filing for unemployment benefits decreased by 20K in June.
In May, the average weekly earnings in the U.K., excluding bonuses, came in at +4.3 percent 3Mo/YoY, which was higher than the +4.2 percent recorded in April and the +4.3 percent anticipated. However, the gauge that included bonuses came in at +6.2 percent 3Mo/YoY, which was lower than the +6.8 percent recorded in March and the +6.9 percent that was anticipated.
AUDUSD Price Analysis: Bulls may find it challenging to overcome the 21 DMA.
AUDUSD is consolidating the renewed rise above 0.6800, facing new offers just short of the 0.6850 level in the previous hour. During this time, the market was paying attention to the U.S. dollar.
The markets are now betting on chances of a rate rise by the RBA of 75 basis points in August, so buyers of AUD might be buying time before the next push higher. This comes after a strong employment report was released in Australia last week.
In addition, hawkish minutes from the RBA’s meeting in July that were released earlier this week showed that the bank remained on course for future rate hikes, as inflation management continues to be its primary focus. The Australian dollar rose from its previous level in the vicinity of 0.6830 to a high of 0.6880 after the publication of the minutes.
The hawkish remarks made by RBA Deputy Governor Michelle Bullock, who reaffirmed that more rate hikes would be required in the months ahead, contributed to the continued improvement in market sentiment.
It is uncertain at this time whether or not the spot will be able to find acceptance above the crucial 21-daily moving average (DMA), which is now set at 0.6847. A daily close that is above the latter level will establish a near-term bottom for the Australian dollar.
USD/CAD is flirting with a daily low in the mid-1.2900s, owing to a weaker USD and an increase in oil prices.
The USD and Canadian Dollar currency pair had difficulty capitalizing on the goodish overnight comeback from levels around 1.2900, which represented a nearly two-week low. They were confronted with a new supply on Tuesday. Throughout the early part of the European session, the pair kept its offered tone and was observed trading around the daily low, somewhere around the middle of the 1.2900s.
The probability of the Federal Reserve increasing interest rates by 100 basis points at their meeting on June 26-27 is decreasing, resulting in the U.S. dollar languishing just above a one-week low reached on Tuesday. It is essential to keep in mind that some members of the FOMC said last week that they were not in favor of a more significant rate rise than the markets had priced in response to the publication of blazing hot U.S. consumer inflation. This is something that should not be forgotten.
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