The Week Ahead – Earning Season Boom

NAS 100 awaits earnings

Gold wasn’t the only asset that fell due to rising yields, as the Nasdaq also saw a slowdown in rising price action. The weakness on Wall Street came with increased treasury yields, moving sharply higher over the past few sessions. However, with Earning Season underway, most tech companies are expected to exceed expectations, leading to the major US indices having another push at record highs. This could send the tech index towards 20800 with 19600 as fresh support.

AUDUSD looking to stop the rally

China’s growth forecasts could prove pivotal to the direction of the Aussie as we see out the remaining months of the year. Projections for higher growth could boost demand for Aussie goods and reverse the Australian economy.  With the AUDUSD pair shedding a few hundred pips since the beginning of October, this would be a welcome relief as 0.6600 is the following support, and a hawkish outlook could send the pair above 0.6740.

XAUUSD falls on high bond yields

Gold reached another record high last week before turning south as rising bond yields and profit-taking saw a pullback. The yellow metal remains bullish in the medium term as the attention turns towards the upcoming US Presidential Election. With global tensions still simmering, Gold is not done yet with its recent record highs as 2800 becomes the next target to the upside, with the recent low of 2720 being critical support.

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