If you expected a quiet week, sorry to disappoint. We are seeing bounces in the Aussie, JPY, Gold and Silver. Not one to remain in second place, silver has enjoyed some nice gains intraday reaching $28.00.
First starting with the AUD/USD. The dovish meeting minutes from The Reserve Bank of Australia’s has the Aussie trading lower than weekly highs at 0.7229.
Additionally we have coronavirus numbers improving in Melbourne with 222 new cases and 17 fatalities. This has been the lowest recordings since July 18.
However late in the trading day we have seen the Aussie hop on up to 0.7230 with the mining sector supporting the currency. We are yet to see the first key indicator being triggered at 0.7245 to then target 0.7300. However failure to do so can see a drop to 0.7160 and even further according to economist at Westpac who predict the AUD/USD falling to 0.7100 vy the end o f September.
China-US tensions are also weighing in with further agression coming from the super powers this week over Huawei bans, TikTok and weChat as well. Also an arrest of a double agent, former CIA Agent turned Chinese Spy.
XAU/USD has had a recovery from its selloff last week but not before retracing a little earlier in the day. Dropping from yesterdays high of $1,990 to $1,982. Though a rubbing of pays by our bear, all the signs are pointing to a continued bullish run. The question remained though, does it have strength to break the psychological resistance of $2000 again? Well traders and tradettes, due to ongoing tension between China and the US and FOMC just around the corner, traders and investors look to the safe haven for shelter.
JPY Shows strength amid manufacturers’ business mood improving. However the the slow recovery from the coronavirus has hindered it’s performance as the bears flex their unwillingness to accept a bullish run.
Silver has come out with force today hitting $28.00. As mentioned above we have seen an increased demand in the miners helping the Aussie dollar rally on the back of gold. Well, same rings true with silver and we see the traders buying back after a sharp selloff. I would say the outlook for silver is a first place victory for this second placed price. With the US Mint attempting to double its output to Silver to meet demand.
The excitement remains and tensions are high between US and China. Hang on to your top hats and farmers hats as this battle of the super powers will bring some good volatility to these markets.