Gold & Currency pairs standing at support and resistance

Gold: US Domestic data posted gains and Supports for Gold

XAUUSD Gold price is moving in the Descending triangle pattern and the market price is standing at the higher high area of the Ascending channel inside the major Triangle pattern.

XAGUSD Silver price is rebounded from the lower low area of the Descending channel.

Gold prices are on solid gains even US NFP Reports shows upbeat data in the market.

And US Unemployment rate posted higher than expected numbers shows US Dollar to create mores support from News.

Now Gold reported solid gains apart from other USD Currency pairs like EURUSD and GBPUSD because demand for Gold increased as US inflation data increased.

As No rate hikes from Major central banks like FED, Bank of England, and Bank of Australia in this month makes lucrative look for non-yielding assets like Gold and Silver.

US Dollar: Strong NFP data printed

USDCAD is moving in an Ascending channel and falls down from a higher high area of the channel.

USDJPY has reached the support area of the Box pattern.

US Dollar index near the resistance area of 94.500 last week after US NFP data posted stronger gains than expected and the unemployment rate came higher than expected.

So, Jobs data came at higher in the US makes well appreciations for US Economy. Still, FED’s announcement of no rate hikes in the near term is a worry for investors, and tapering did for $15 billion per month from $120 billion Asset purchasing.

And now the US Dollar index shows more robust demand for US Dollar from Global level, and this week CPI, PPI and FED Powell speech is scheduled, based on comments market will move this week.

EURO: ECB Lane speech

EURJPY is moving at the Descending channel and the market price has rebounded from the lower low area.

ECB Chief economist Philip Lane said to Newspaper. That current Inflation is transitory and not permanent.

Inflation in the Eurozone makes higher due to Fuel costs and Supply bottlenecks.

And this Supply chain issues will be reduced in next year; we have to keep patience for a reduction in next year.

Energy consumption and demand will be slower next year as Supply increases day by day.

So not to worry about higher inflation numbers in Eurozone, and as it is temporary.

Once the supply of Fuel issues is solved, inflation prices will go down automatically, so no rate hike is expected in the near month.

UK Pound: the UK planning to trigger article 16

GBPNZD Has reached the lower low area of the Descending channel.

Britain Government is preparing for triggering article 16 of the Northern Ireland protocol is much on the table.

And the Minister of Foreign Affairs Simon Coveney said if Article 16 triggered, then the relationship between UK and EU becomes detached more on other connections.

The UK welcomes more negative solutions on Northern Ireland decisions, and if triggered Article 16, will hugely impact Northern Ireland and Europe.

In this weekly meeting of the Brexit deal on Northern Ireland going to be discussed, any positive news will be good for both nations, but if any adverse decision from the UK makes a detached relationship with the EU is possible.

BoE Governor speech

Bank of England Governor Bailey commented it’s not our jobs makes market cheers day by day as rate hikes.

As Inflation is transitory and rate hikes will be done if the situation comes to the Economy.

So, we did not support markets to higher or lower; it is not our job to do; Economy shows recovery mode on the way; it will get up in at least two years from the pandemic.

Next year middle of the month makes some rate hikes is expected if the inflation rate is not lowered.

Canadian Dollar: Bank of Canada Governor Speech

GBPCAD has reached the previous support area of the Box pattern and rebounded from the support area.

Bank of Canada Governor Macklem said Inflation remains transitory and long run, is not expected.

Transitory meaning is not permanent but remains short-term.

So, no quick moves from the Bank of Canada are expected in the short term.

And we can expect Rate hikes in April and September of next year.

In mid-2022, we can expect half of the inflation numbers will get decreased, so people don’t need to fear rising consumer prices.

And the Inflation numbers will be short-live at least one year or below based on the path of Economy recovery, which will show in the coming months.

Japanese Yen: New stimulus discussion of Government

CADJPY is moving in the Descending channel and the channel fell from the lower high area.

Japanese Government now discussing for Budget of 30 trillion yen ($265 billion) required for Covid-19 pandemic affected Economy to issue stimulus.

These funds may be collected from last year budget carried over funds as one type.

And the common instrument is issuing Bonds, and collecting funds to Government is the second type.

These Funds will be used for Domestic startup tourism and 10 trillion Yen for University research.

And Japanese Yen makes weaker if 30 trillion Yen will be issued for new debt bonds in Public.

Australian Dollar: China trade surplus increased

AUDUSD is moving in the Descending channel and fell from the lower high area of the Descending channel and higher high area of the minor Ascending channel within the Major channel.

China’s trade surplus has increased to $84.54 billion in October, a $20 billion increase from the previous month.

Due to significant imports decreased and exports are higher driven by higher consumer needs of Goods and Services.

And the prolonged slowdown in the Chinese Economy from Housing, electricity and Covid-19 are the main stoppages for economic recovery in China.

But Investors are happy with the passage of the US$ 1 trillion packages passed by the House of Representatives last Friday night.

And China CPI expected to come at 1.4%y/y dropping reading and Australia Employment change scheduled to print at +50K.

New Zealand Dollar: Another rate hike expected in next meeting

NZDUSD is retested the Descending channel once again and rebounded from the Retested area of the channel.

New Zealand Dollar makes gains as another rate hike is expected from RBNZ this month.

And Border restrictions are eased in New Zealand, and tight cautions on quarantine activities for tourists and travellers.

And New Zealand Economy posted a strong unemployment rate to below 4% shows the Economy improved more than expected.

Last week US Dollar posted substantial gains, which made less impact on New Zealand Dollar, as it was stronger due to China’s trade surplus posting higher numbers than expected.

And China is the core country for New Zealand exports; So China performance will affect the Export revenues of New Zealand.