The Bitcoin “death cross” has occurred. The S&P 500 rallied the most in five weeks! Crude oil and gold jumped as the US dollar weakened.
Forex today: gold, AUD/USD, and USD/JPY
- Both China and the USA published encouraging numbers. China’s Caixin Services PMI beat all expectations. It rose to 54.3, while the forecast was 52.2. US ISM Services PMI jumped to 63.7, while analysts anticipated 58.3.
- The Reserve Bank of Australia, as expected, kept its policy unchanged. The central bank’s tone was optimistic as Australia’s economic recovery is faster than expected. As a result, AUD/USD modestly rose, but then lost its steam and dropped.
- Gold lifted up as US real yields dropped for the third time in four sessions. As a rule, falling yields push the USD down and gold up. But still gold should break above $1750 to rally up further.
- Google (Alphabet) was blamed for copyright violation as it used Oracle’s programming code, but all the charges were dropped. Thus, Google surged.
- Tesla jumped yesterday above $700 for the first time since mid-March as it had published better-than-expected car deliveries. However, it closed in red.
The euro keeps weakening amid the poor vaccination rollout in Euro Area. EUR/USD is edging lower to the 50-period moving average at 1.1760. If it manages to break it, the way down to the key psychological mark of 1.1700 will be open. On the flip side, if it breaks through the 100-period moving average of 1.1835, it may jump to the next round number of 1.1900.
AUD/USD has bounced off the resistance of 0.7660. It’s moving down to the low of April 2 at 0.7600. If it breaks it, the way down to the low of April 1 at 0.7540 will be open. On the flip side, the breakout above 0.7660 will drive the pair to the upper trend line at 0.7700, which it’s unlikely to cross on the first try.
Gold is rising! It’s getting closer to the recent high of $1750. If it manages to cross it, the way up to the 50-day moving average of $1765 will be clear and then to $1810 at the 100-day moving average, if bulls keep momentum. However, it’s hard to believe that gold may rally so high as the overall trend is down. If the price breaks through the support of $1700, the way down to the low of March 30 at $1680 will be open.
Finally, let’s discuss USD/JPY. It has bounced off the 50-period moving average of 110.00. The breakout above 110.70 will drive the pair up to March highs of 111.00. Support levels are 110.00 and 109.50.
Wednesday will please traders as many economic indicators will be out! The USA, UK, and Euro Area will release PMI reports on June 23 from 10:15 to 16:45 MT.
Last week the USD soared versus other major currencies, while gold headed for the biggest weekly loss in 15 months. Let’s see what new moves await us this week!
US PCE Price Index will be out on Friday at 15:30 MT.
Microsoft joined Apple in the $2 trillion dollar club! Follow PMI reports from the US, UK, and EU throughout the day!
The Bank of England will release its statement and announce its monetary policy decision on June 24 at 14:00 MT.