Gold, Dow Jones, US Greenback, GDP Information – Asia Pacific Market Open

• Gold costs sink because the US Greenback rallies and the Dow Jones tumbles
• Supportive Q3 US GDP revisions underscored a extra hawkish Fed
• Asia-Pacific markets seemingly in danger to skinny buying and selling circumstances forward

Asia-Pacific Market Briefing – US GDP Information Underscored a Hawkish Fed

Gold costs fell 1.2% on Thursday as normal market sentiment deteriorated, producing a risky Wall Road buying and selling session. The Dow Jones, S&P 500 and Nasdaq 100 sank 1.05%, 1.45% and a couple of.18%, respectively. In consequence, the VIX market ‘concern gauge’ soared about 9.6%, probably the most since September. In the meantime, the haven-linked US Greenback gained cautiously.

Decreased liquidity resulting from thinner buying and selling circumstances earlier than Christmas means markets will be delicate to occasion threat. This got here within the type of revisions to US third-quarter GDP information. Development clocked in at an annualized tempo of three.2% q/q versus the two.9% estimate. In the meantime, private consumption, crucial phase of GDP, stunned at 2.3% versus the 1.7% consensus.

The info underscored the Federal Reserve’s ongoing battle in opposition to the best inflation in many years. Bettering development might improve the chance of the so-called ‘tender touchdown’ and level to a extra sturdy economic system. In flip, that might imply a extra hawkish Fed. You may see that mirrored in Treasury yields, which rallied alongside the US Greenback.

Gold Technical Evaluation

XAU/USD left behind an Night Star candlestick sample, which is a bearish formation. In the meantime, costs proceed buying and selling throughout the boundaries of a bearish Rising Wedge. A breakout and affirmation are missing presently, however a draw back push might open the door to resuming the broader downtrend that began earlier this 12 months. That locations the concentrate on the 50-day Easy Shifting Common (SMA). In any other case, closing above 1824 exposes the June excessive at 1879.

XAU/USD Every day Chart

Chart Created in TradingView

Friday’s Asia Pacific Buying and selling Session – ASX 200, Nikkei 225, ASX 200 at Danger?

Friday’s Asia-Pacific buying and selling session is missing notable financial occasion threat. That locations the main target for merchants on threat urge for food. An additional deterioration in sentiment within the wake of Wall Road’s volatility locations the ASX 200, Nikkei 225 and Grasp Seng Index in danger. This might depart gold weak to a rising US Greenback.

US Greenback Technical Evaluation

The DXY US Greenback Index continues to idle above the important thing 103.93 – 104.39 help zone. This follows a string of losses since September. Costs stay beneath the downward-sloping 20- and 50-day SMAs. The latter continues to keep up a near-term draw back focus. Breaking above the latter might open the door to a bullish reversal. In any other case, breaking help exposes the Could low at 101.29.

DXY Every day Chart

Chart Created in TradingView

— Written by Daniel Dubrovsky, Senior Strategist for DailyFX.com

To contact Daniel, observe him on Twitter:@ddubrovskyFX