Article by: ETO Markets
In October, Australia's unemployment rate was 3.7%, as anticipated, down from 3.6% in September. However, following the release of the US economic data on Wednesday, there was volatility in the AUD/USD pair during the prior session.
Following four hours of discussions, Chinese President Xi Jinping and US President Joe Biden agreed to normalize tense bilateral relations and resume certain military-to-military exchanges. By addressing and strengthening the two countries' complex relationship, this commitment may pave the path for future improvements in diplomatic and strategic collaboration.
We saw an unexpected shift in the US Producer Price Index in October, falling by 0.5% compared to a predicted increase of 0.1%. There was a decrease in the annual rate as well, from 2.2% to 1.3%. These numbers are consistent with the US Consumer Price Index data released on Tuesday, which showed weaker inflation.
The US Bureau of Labor Statistics data showed that US inflation had slowed down more than first thought. The US Dollar experienced a significant decrease in value as a result of this unanticipated slowdown.
The fact that US retail sales fell by 0.1% in October instead of the predicted 0.3% fall adds to the country's economic panorama. On Thursday, investors' attention is diverted to weekly Jobless Claims.
In October, the Producer Price Index fell by 0.5% compared to the 0.1% increase that was anticipated. Additionally, the annual rate decreased from 2.2% to 1.3%. Furthermore, the Core PPI displayed lower-than-expected numbers. These figures support the Consumer Price Index data that was made public on Tuesday, which shows that inflation is declining. In October, retail sales fell by 0.1% as opposed to the 0.3% fall that was anticipated.
In order to open the door for additional gains, the bulls need to decisively break above the 20-SMA at $…, which is where resistance for gold is located. The price appears to be in an unstable upswing as long as it stays below this level. The daily chart shows that $…represents a significant support level on the downside. Below that, the 50-, 100-, and 200-DMAs are positioned to offer support between $… and $... A breakout below that area would suggest additional weakness and a possible $… test.
The fact that XAU/USD is still above the 20-SMA on the 4-hour chart indicates that there may be more upside. Technical indicators, however, provide inconsistent warnings. In the short run, gold would be susceptible if it broke below $... The major resistance at $…would be revealed by a breakout above $...
For the fourth week running, crude oil prices have fallen as investors have written down the risk premium associated with the Israel-Hamas war. Furthermore, the pressure on the oil markets has increased due to the uncertainty surrounding US Federal Reserve interest rates. There is now some uncertainty because of the Fed's warning that it would hike rates again this year, even though recent data shows that inflation is declining.
XTI/USD's 4-hour chart shows that the price settled below the 100- and 200- SMAs as well as the pivot level of $... A low was established at $…, and the price has now begun to rise again. The resistance level of $… was crossed.
On the same chart, a significant negative trend line is also formed, with resistance close to $... The 38.2% Fib retracement level, or the $… zone, is the location of the next significant resistance.
