Gold prices are moving a little higher today, now trading above $3,350 in Wednesday trading in Asia. Market participants are now watching the important resistance levels very closely. They anxiously await the release of every high-impact economic data from the United States. Coming on the heels of this week’s critical Fed speak, market moving insight into tomorrow price action may lie in some key fed policymakers.
The action is unmistakably centered on what is to come in the evolving US economic landscape. Gold buyers are probably looking for more moves up in price. “Gold price battles key resistance ahead of high-impact US data,” highlighted FXStreet, emphasizing the significance of upcoming reports for traders.
In the currency markets, GBP/USD continues to hold its ground above 1.3500 as it tracks for bids during the European session. This relative calmness comes just ahead of several important US economic releases and shows that traders are getting prepared to build in the markets. “GBP/USD remains above 1.3500 ahead of key US data,” noted FXStreet, reinforcing the importance of the economic indicators on the horizon.
At the same time, EUR/USD continues to trade under the key 1.1400 level, languishing as the US Dollar catches a bid. The flat pair indicates a lack of movement, mirroring traders’ waited expectation for future data releases. “EUR/USD hovers below 1.1400 as US Dollar steadies ahead of key data,” reported FXStreet, illustrating the cautious sentiment among investors.
The Australian dollar extends losses against US dollar after reversing previous gains. This slump comes on the heels of similarly bad Q1 GDP data, which came in at just 0.2% q/q, well below the forecast 0.4%. The AUDCNY hasn’t looked back since that breakout and is currently heading towards the 0.6450 handle in Asian trade on Wednesday. “AUD/USD erases gains to near 0.6450 after downbeat Australian Q1 GDP data,” stated FXStreet, highlighting the impact of local economic performance on currency valuation.
The US Dollar is consolidating its previous recovery gains amid optimism regarding trade deals, particularly with anticipated talks between Trump and Xi and updates on the US-Canada trade agreement. Market participants are starved for direction on job’s data and trade news. Surprise not, that information is sure to stoke more trading firepower.
Traders are looking ahead to the US ADP jobs report and ISM Services PMI data as catalyst events. All eyes are glued to these two critical economic barometers and to any hints they can catch from Federal Reserve officials.