Federal Open Market Committee, a committee within the Federal Reserve System (the Fed), will release June’s FOMC meeting minutes later today. In the June meeting, FOMC raised interest rates by 75 bps, the biggest increase in three decades.
Asian shares scaled an 18-month high on Friday while oil prices stayed buoyant in a holiday-shortened week, as investor optimism improved on hopes a U.S.-China trade deal would soon be signed.
Brent crude, the global benchmark, extended gains into a fourth session, hitting $68.10 per barrel, and the highest since mid-September. U.S. West Texas Intermediate crude gained 11 cents to $61.79 a barrel. Brent has rallied about 25% in 2019, supported by supply cuts by OPEC and allies including Russia.
The dollar index .DXY was a shade weaker at 97.440 against a basket of six major currencies. The rally in oil and gold boosted commodity-linked currencies in the past 24 hours with the Australian and New Zealand dollars soaring to their highest since late-July at $0.6956 and $0.6681, respectively.
Gold prices eased from a near two-month high hit earlier on Friday. They have been on the rise recently as a hedge against dollar weakness and increased equity market volatility in 2020.
According to data released by the National Bureau of Statistics, China’s industrial profits expanded at the fastest pace in eight months during November, after declining for three consecutive months. Industrial profits climbed 5.4% higher in November to 593.9 billion Yuan following a 9.9% decline in the previous month.
On Thursday, US unemployment claims declined by 13,000 to 222k for the previous week, beating expectations for a fall to 224k instead. The better than expected jobless claims data supported the rally in Wall Street, which have been trading bullish ever since the US and China announced the partial trade deal.
GOLD: On Thursday, gold prices rose about 0.8% close to a 2-month high at $1,511 and continued moving above $1,500 level despite low volume trades due to holiday. The movement is still strong, currently the yellow metal trading $1513. But the RSI looks oversold we may expect sellers at $1514/$1518 level.
Quote of the day: Great traders aren’t born or made overnight. It takes patience, discipline and consistency to master the art of trading.
The Reserve Bank of Australia increased its benchmark interest rate from 0.5% to 1.35% on Tuesday and It is the third consecutive month in which the central bank has hiked rates.
Precious metals like gold and silver prices extended declines in early trading on Friday. The strong bearish sentiment fueled by fed Chairman Jerome Powell's hawkish stance on Wednesday encouraged dollar bulls and pressured metal prices lower.
Global markets remain volatile following the hawkish comments from the central bank chiefs during the European Central Bank's (ECB) annual forum in Portugal. The central bankers have warned that the era of low-interest rates and moderate inflation has come to an end.