US PPI inflation and Michigan consumer confidence awaited
Gold=> The commodity rises towards 1800
BTC/USD =>The cryptocurrency rises above 17k
AUD/USD=> The pair rises towards 0.68
Gold rises for a fourth day
Gold is rising for a fourth straight session. The precious metal has risen as investors continue to weigh up the prospect of a less aggressive Federal Reserve amid rising recession fears and as the US dollar takes a step lower. Yesterday rising jobless claims prompted bets that the US labour market is cooling. Continuing jobless claims were at the highest level since the start of the year. This tells us that Americans who left their jobs find it harder to get a new job, as the labour market loosens. Today, attention is on wholesale inflation as measured by the producer price index (PPI), which fell in October and is expected to cool further in November. Falling wholesale inflation would support the view that the Federal Reserve will raise rates at a slower pace, which could benefit non-yielding gold.
Where might the gold price head to?
Gold has rebounded from its November low of 1616, recapturing its 50 and 100 smas, and is testing resistance at the 200 sma. The RSI is above 50, so supports further upside while it remains out of overbought territory. Buyers will look for a rise over the 200 sma at 1793 to attack the December high of 1810. Above here, buyers could look for a move towards 1880, the June high. On the downside, immediate support can be seen at 1770, the near-term rising trend line; a break below here exposes the 100 sma at 1760 ahead of 1727, the October high.
BTC/USD and ETH/USD rally
BTC/USD is rising, pushing back above 17k to 17.2k, its highest level since Monday, as Bitcoin looked past inflation and recession fears and the FTX crisis of confidence. Meanwhile, ETH/USD trades up 4.5% at $1300 after developers set out the network’s hard folk, called Shanghai, which is set for release in March, with another lined up for Autumn next year. The rebound comes after ETH/USD dropped 17% last month, breaking a key trendline support. In crypto news, reports are surfacing that Binance is acquiring Tokocrypto, one of Indonesia’s largest exchanges, but so far, there has been no confirmation. Given the popularity of crypto in Indonesia, the move would make sense. There are reportedly more crypto traders than stock market traders in Indonesia.
AUD/USD rises despite China inflation easing
AUD/USD is rising for a third straight session but is still trading flat across the week despite China announcing that it will move away from its zero Covid policies. The Aussie, also known as a China proxy, failed to turn positive across the week on the news, suggesting an element of caution over how quickly China will ditch its strict Covid measures. Overnight data from China showed that inflation eased further in November when Covid restrictions limited economic activity, with consumers and businesses spending less. Looking ahead, no more Australian data will be released this week. Instead, attention will be on US wholesale inflation and University of Michigan consumer confidence, which is expected to slow slightly in December to 53.3, down from 56.8 in November. Weak consumer sentiment could pull the US dollar lower.
Support could be seen at 0.6675 (weekly low) and 0.6580 (November 21 low).
Resistance could be seen at 0.6830 (100 sma) and 0.69 (200 sma).