News and Market Analysis

Mixed announcements bring dollar down
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Higher Jobless Claims in the US overshadowed any increased hope of the Democrat in the US House of Reps $2.2 trillion coronavirus relief being voted in. The US Federal Reserve also came out with mixed messages on inflation and employment which had the markets spinning.

 

After a tough run this week the AUD/US has bounced above key resistance at 0.7050. Whilst the Euro is hanging on by the skin of its teeth as COVID breakout intensify across Europe.

 

The pound held itself sturdy at 1.2750 however Brexit talk have it wobbling at the knees as European Minister Clement Beaune Dismissed any threats from the UK on a post-Brexit deal.

 

XAU is pushing back to $1900. As discussed yesterday when the dollar pulls back the yellow metal pushes forward. And here we are. Keep an eye out for the US Durable Goods data and see the correlation between the dollar and gold.