Gold prices are creeping back up over $3,350 in Asian trading Wednesday. Indicators coming out of the United States are being closely monitored by investors. This modest recovery comes as market participants anticipate high-impact data releases, which may significantly influence trading strategies for the precious metal.
Over the last few trading days, the gold price spotted an opportunity to fight through key resistance levels. Traders are looking forward to some key US data and speeches from Federal Reserve policymakers. Any or all of these events may trigger a new, sustained upward wave in gold prices.
“Gold price battles key resistance ahead of high-impact US data” – FXStreet
The currency markets are showing signs of tentative trade. The GBP/USD pair is holding above the 1.3500 resistance-turned-support, protecting downside bids during the European trade on Wednesday. Such stability would indicate that traders in this market are waiting for more direction before taking major actions.
“GBP/USD remains above 1.3500 ahead of key US data” – FXStreet
The EUR/USD pair continues to trade below the 1.1400 figure. At the same time, the US Dollar is consolidating, heading into key economic releases. The consolidation of the Euro against the Dollar suggests a market that is resting before renewed volatility.
“EUR/USD hovers below 1.1400 as US Dollar steadies ahead of key data” – FXStreet
The Australian Dollar (AUD) gave back its day’s gains and moved back close to 0.6450. This was published on the back of the disappointing Q1 GDP data, which grew by just 0.2% q/q, far short of the final 0.4% expected. This economic crisis further highlights the ways that domestic economic conditions can happen surprisingly fast to affect currency values.
“AUD/USD erases gains to near 0.6450 after downbeat Australian Q1 GDP data” – FXStreet
Once the trading day resumes, the US Dollar continues to consolidate the prior recovery gains. This spike coincides with increasing optimism about pending trade agreements, like the impressive pause in hostilities between Trump and Xi, and daily reports on the emerging US-Canada trade agreement. There’s one jobs report that market participants are especially keyed up to see, and that’s the ADP private payrolls number. They’re expecting today’s ISM Services PMI data to guide their trading decisions.
All eyes are on the all-important US economic data releases. There’s no question these reports will have a huge impact on market sentiment and direction over the coming days. As traders digest the effects of these numbers, they will almost certainly change hands.