As you must already know, the direction of Gold is mainly dependent on the Price action of DXY (US Dollar index). So first, we take a look at the US Dollar index.
NZD/USD ahead of the RBNZ meeting
2019-11-12 • Updated
SELL 0.6335; TP1 0.6300; TP2 0.6260; SL 0.6355
BUY 0.6390; TP 0.6425; SL 0.6375
A bearish “engulfing” pattern was formed on the W1 chart of NZD/USD around the 38.2% Fibonacci retracement level of the July-October decline. The pair’s currently is trying to return above the 50-day MA in the 0.6340 area, but we have to be cautious about the upside. The Reserve Bank of New Zealand is expected to cut its benchmark interest rate early on Wednesday that creates a big risk for the NZD. The decline below 0.6340 will open the way down to 0.6320 (last week’s low) and 0.6300 (support line connecting October lows). The loss of 0.6300 will lead to a bigger fall to 0.6260 (78.2% Fibo of the October-November advance). On the upside, resistance is at 0.6365 and 0.6385. Only the advance above the latter will open the way up to the October highs in the 0.6425/35 area.
On January 12, the Bureau of Statistics will publish the Consumer Price Index (CPI) figures, a key index for determining interest rates. While we await the release, experts forecast a decline in the CPI data, a hint at weaker Dollar values in the global markets.
Later today Tiff Macklem, the governor of the BoC (Bank of Canada) is expected to speak at the Riksbank's International Symposium as part of a discussion panel on 'Central Bank Independence'.
Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?
Today, at 5:00 pm (GMT +2), the Bank of Canada will publish the Overnight Rate, which represents short-term interest rates, and is pivotal to the overall pricing of the Canadian Dollar in the global markets. Let's look at how the markets are faring ahead of the BoC rates release.
In a call scheduled for January 25, 00:30 am GMT+2, Microsoft will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.