Daily Forex Market Preview, 07/03/2018
The U.S. dollar was seen closing weaker as demand for risk appetite grew. News reports about North Korea being open to talks with the U.S. lifted the markets higher. On the economic front, the Eurozone retail sector PMI was seen rising to 52.8 compared to 50.8 previously. In the U.S. factor orders were unrevised, posting a 1.4% decline on the month. This comes after five consecutive months of solid gains in the sector.
Earlier today, Australian fourth quarter GDP showed a slower than expected pact of increase. The fourth quarter GDP expanded at a slower pace of just 0.4%, down from the third quarter’s revised GDP of 0.7%. This brought the annual GDP in 2017 to 2.4%.
Looking ahead, the ADP private payrolls data will be coming out later today. Economists forecast that the economy added 199k jobs in the private sector. FOMC member Dudley will be speaking again today.
The Bank of Canada will be deciding on the interest rates today. No changes are expected as the BoC is likely to keep the interest rate unchanged at 1.25%.
XAUUSD 07-03-2018 Intra-day analysis
XAUUSD (1334.85): Gold prices closed with strong gains on Tuesday rising above the 1328 resistance level. However, price action was seen easing back in early trading today. A close below the resistance level of 1328 could potentially shift the bias to the downside. In the near term, we expect gold prices to retest the level near 1328 where support could now be established. A rebound off this level could indicate further upside gains in the near term. The bias shifts to the downside only on a close below this level.