Gold buyers return ahead of US statistics

Market sentiment improves on early Tuesday but the pre-data anxiety limits momentum and offered a dull start to the key day comprising multiple top-tier data from the US and Canada. That said, headlines surrounding China tamed previous economic fears and allowed the riskier currencies to grind higher.

Apart from the risk-on mood, Monday’s dull US data also exerted downside pressure on the US Dollar and strengthened the prices of commodities and Antipodeans.

That said, the EURUSD and USDCHF were among the biggest beneficiaries from the downbeat US Dollar while Gold prints the first daily gains in three by approaching the monthly high marked in the last week.

It’s worth noting RBA Minutes prod AUDUSD bulls despite marking the policymakers’ readiness to lift the rates in August if needed.

Elsewhere, regulatory hardships from Australia and the US financial stability board stopped BTCUSD and ETHUSD from cheering the downbeat US Dollar as both these assets post a five-day losing streak at the latest.

Following are the latest moves of the key assets:

• Brent oil struggles to defend two-day downtrend near $78.50, indecisive of late.
• Gold price rises to the one-month high, up 0.35% intraday near $1,963 at the latest.
• USD Index remains on the back foot near 99.70 by the press time, down for the second consecutive day.
• Wall Street closed with mild gains while stocks in the Asia-Pacific zone edged higher. Even so, equities in Europe and UK print mild losses by the press time.
• BTCUSD and ETHUSD print minor losses during five-day downtrend to around $30,000 and $1,900 as we write.

Upbeat sentiment, unimpressive US data weigh on USD

Headlines from China defy the previous day’s fears of witnessing a slowdown in the world’s second-largest economy as policymakers show readiness for more stimululs while also expecting 5.0% GDP growth for 2023. Adding strength to the optimism could be the US diplomat’s Beijing tour and updates suggesting placating terms between Washington and Beijing.

Elsewhere, the Fed doves are back to the table and weigh on the US Dollar as Monday’s second-tier data failed to defend the consumer-centric optimism marked on Friday.

With this, the Gold price prods the short-term key upside resistance surrounding $1,965 while Brent Oil also recovers. That said, majors are trading mixed with the AUDUSD and NZDUSD failing to cheer US Dollar weakness and China-inspired optimism.

It should be noted that the National Australia Bank and the US financial stability board detail crypto market optimism amid a cautious mood ahead of the top-tier US data.

• Strong buy: USDCAD
• Strong sell: ETHUSD, GBPUSD, Gold
• Buy: USD Index, Nasdaq, USDJPY
• Sell: DAX, FTSE 100, BTCUSD, AUDUSD, EURUSD

US Retail Sales, IP and Canada inflation in focus

Market players are more interested in watching the US Retail Sales and Industrial Production for June, mainly to gauge the Fed’s rate hike trajectory past July. Also important to observe are the headline inflation data from Canada as the Bank of Canada (BoC) has helped CAD to remain firm of late.

May the trading luck be with you!