In this article, we have covered the highlights of global market news about the Platinum (XPT/USD), AUD/USD, USD/JPY and Gold (XAU/USD).
Platinum Price Analysis: XPT/USD Maintains Path to $830-29 Support Zone
The Platinum price (XPT/USD) is trading at $860 in the early hours of Tuesday morning in Europe. Despite having recovered off a 1.5-month low the day before, the precious metal was unable to maintain buying interest.
Platinum is anticipated to continue to be under pressure around the 61.8% Fibonacci retracement level of the March 2020 to February 2021 upside, close to $858.00, given the quote’s extended weakening below the 200-DMA, about $972.00 at the time of press.
If the bears are successful in breaking through the $858.00 support, the horizontal region that includes the lows recorded in September 2020 and in July 2022 may provide a test to the Platinum bears around $830-29.00.
It should be highlighted that if Platinum continues to fall over $830.00, it may be susceptible to shattering the $800 barrier and aiming for June 2020 lows of $784.00.
Recovery is still elusive until the quotation breaches the $972.00 200-DMA level, a breach of which would push the quote closer to the psychological magnet of $1,000.
However, a virtually oversold RSI might start the Platinum Price comeback, aiming for the swing bottom from April at $910.00.
In conclusion, Platinum will probably continue to be on the bear’s radar until it crosses the 200-DMA. However, RSI indicates a limited amount of downward space as it approaches oversold territory.
AUD/USD returns to over 0.6900 despite weak USD demand, but lacks bullish confidence.
On Tuesday, new selling is attracted to the AUD/USD pair as it fails to benefit from the previous day’s reasonable recovery from the area of 0.6840, or a six-week low. However, the intraday decline finds some support at the 0.6875 region and pushes spot prices to a new daily high in the early European session, in the 0.6915-0.6920 region.
Following a 0.6% fall in June, the Australian Bureau of Statistics revealed that construction approvals fell 17.2% in July. The Australian dollar is under some downward pressure as a result of the gradually worsening property market conditions and increasing interest rates. Nevertheless, the AUD/USD pair’s potential fall was constrained by the restrained US dollar price action.
The safe-haven dollar seems to be challenged by a further decline in US Treasury bond rates and a generally upbeat risk tone, which provide some support for the risk-sensitive. While hawkish Fed forecasts should continue to support the dollar in the short term, the AUD/USD pair may struggle to benefit from the intraday rally.
In actuality, the markets are pricing in a higher likelihood of a massive 75 bps Fed rate rise at the September policy meeting. Fed Chair Jerome Powell reiterated the bets, indicating that interest rates will be maintained higher for longer to reduce inflation. As a result, traders should refrain from setting up for any significant gain for the AUD/USD pair since this benefits the USD bulls.
USD/JPY will trade mostly sideways since both currencies have a similar safe-haven character – HSBC
According to experts at HSBC, if risk aversion continues to be dominant for the time being, the Japanese yen (JPY) would likely outperform ‘risk on’ currencies, but not the US dollar (USD).
“Risk aversion will probably increase in the coming weeks if US activity data deteriorate but the Federal Reserve (Fed) maintains its’more work to be done’ narrative. Because of this, the USD and JPY are expected to profit as “safe havens,” with a possible slight USD outperformance.
“Given our expectation that a risk-averse environment (amid market concerns over the global slowdown) will prevail for the time being, we expect the JPY to outperform ‘risk on’ currencies (like the AUD and NZD), but to move largely sideways against the USD as they share similar “safe-haven” profiles,” the report stated.
Looking beyond the short term, we think the JPY is underpriced for the danger of a global economic slowdown and for the potential that the BoJ may ultimately need to make some changes to its monetary policy. We are remain positive on the yen over the medium term.
Gold price prediction: XAU/USD is expected to test the $1,712 level of support.
The downward trend in gold prices has resumed. According to Dhwani Mehta of FXStreet, the target price for Gold (XAU/USD) remains $1,712.
“Sellers must surpass the monthly lows of $1,720 in order to maintain the negative trend toward the low of $1,712 set on July 27. If the former is not maintained, a test of the $1,700 level will be possible.
Any recovery efforts must gain acceptance above the rising trendline support turned resistance at $1,741 in order to go to the upside. The psychological threshold of $1,750 will be the next upward obstacle for bulls. The benchmark for Gold buyers will be Friday’s high of $1,759, which is also where the 50-Daily Moving Average (DMA), which is bearish, is hiding.
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