The gold price hit an all-time high of $2038 on Wednesday during the European session. The recent upside rally supported by a weaker dollar, escalating tensions between the US and China and a large explosion in the Lebanese capital, Beirut. The safe-haven metal surged more than 30% this year boosted by lower interest rates and rising coronavirus cases.
European and US stock futures trading higher on Wednesday supported by strong Eurozone and China PMI data and on hopes of further stimulus from the United States. On the other hand, the Wall Street Journal reported Tuesday that high-level talks between US and Chinese officials will be held Aug. 15 to discuss China's compliance with the trade deal signed in January.
Crude oil price Climbed to a fresh session high on Wednesday after a massive blast at Lebanon’s main port rocked Beirut and overnight, the API data showed a massive draw in crude oil inventories of 8.6 million barrels last week.
In the currency market, the US dollar edges lower against a basket of six major rivals. The Australian dollar climbed to 0.7200 during the European session supported by strong service PMI numbers and Gold price rally.
The yellow metal price trading steady above $2030 on Wednesday and overall, the movement remained bullish throughout the Asian session.
On the data front, New Zealand unemployment rate declined to 4.0% in the second quarter. This number was better than the 5.8% increase that analysts were expecting. The participation rate dropped to 69.70% from the previous 70.50% while the employment change declined by 0.4% in the quarter.
On Monday, US President Donald Trump said he was weighing executive action as Congress and the White House struggle to break the impasse over another emergency relief package to counter the coronavirus' impact on U.S. families and the economy. Meanwhile, Treasury Secretary Steven Mnuchin said the goal is to strike a deal on legislation by the end of the week.
Moving ahead today, the important events to watch:
US ADP employment report – 12.15 GMT
US ISM non-manufacturing PMI – 14.00 GMT
US crude oil inventories – 14.30 GMT
The number of people infected with the coronavirus across the world surpassed 18.5 million, of which at least 700 thousand people have died, according to data released by the Johns Hopkins University. Spain reported more 5,760 new coronavirus infections on Tuesday, and the regions of Iscar and Pedrajas have been put back into lockdown due to a surge in coronavirus cases.
Dollar Index: The greenback extends losses ahead of US ADP numbers, at the time of writing the index trading below 93.50 support zone.
The important levels to watch for today: Support- 93 and 92.50 Resistance- 93.50 and 94.00.
AUD/USD: The commodity currency hovers near 0.72 during the European session and any break above this level the next level to watch 0.7225(Previous month high). On the downside, the immediate support at 0.7150.
The important levels to watch for today: Support- 0.7150 and 0.7100 Resistance- 0.7200 and 0.7230.
Quote of the day: As a trader, you often walk on the blade. Be careful and don’t step off- Marc Rich