The price of yellow metal is stuck at the $1.815 level, having risen from $1.800 since yesterday’s US session. Investors are betting on a strong recovery as the covid fears are getting weaker which sent concerns into the tech sectors, pressuring the Nasdaq that ended down 1.4% in its biggest decline since December. This week’s US Nonfarm Payrolls will be one of the key events. The minutes of the last FOMC meeting will be released today. Traders will watch the language to understand when a rate hike could happen as Fed is going to hike the rates as potentially soon as this quarter to deal with rising inflation.
BUY 1815.00/TP 1824.00/SL 1810.00
EUR/USD
The major currency pair stays pressured around 1.1285 level near a two-week low amid the initial Asian session on Wednesday, following a downtrend for two days in a row. Despite the greenback’s lack of movement, market participants begin to predict at least three-rate hikes as portrayed by US money market futures, expecting the first hike as soon as the bond taper ends in March 2022. As for the macroeconomic data, German Retail Sales expanded at a monthly rate of 0.6% in November and contracted 0.2% over the last twelve months, while in the US docket, the ISM Manufacturing surprised by the downside at 58.7 last month which could support EUR bulls for a short time.
BUY 1.1280/TP 1.1380/SL 1.2690
AUD/USD
UD/USD showed the bearish dynamic around 0.7235 by the early Wednesday morning in Asia while bulls took a break during the previous day’s corrective pullback. The Aussie pair cheered cautious optimism in the markets, as well as upbeat data at home and softer US figures to consolidate Monday’s heavy losses. It’s also worth noting that a jump in the global vaccinations also keeps policymakers hopeful of overcoming the pandemic, which creates a favorable market sentiment for riskier assets like gold, equities and AUD/USD. Such risk catalysts as the US ADP Employment Change in December and the Federal Open Market Committee Meeting Minutes will be closely watched by AUD/USD traders this week.
BUY 0.7240/TP 0.7350/SL 0.7190