IC Markets: Fed rate hike is expected to continue to heat up the market anticipated US economic data

Updated: May 23, 2016  Views: 249

Fundamentals:

On Friday spot gold prices remain volatile overall downward trend, consolidation pattern was low on Friday in the Asian trading session the price of gold edged higher, then fell under pressure after the European plate opening price of gold once again poised to move up, but the power is still upward after weak. US set the opening price of gold recorded the highest intraday to 1260.24, followed by highs, taking all the gains intraday refresh intraday low of 1248.86 and eventually closing the day to 1252.08, down 0.18%.

Data, the data National Association of Realtors (NAR showed US April existing home sales total annualized 5.45 million, more than the expected 5.4 million, up 1.7%, exceeding expectations rose 1.3% in the US in March to Total sales on house repair annualized 5.36 million. the better-than-expected data on the performance of the gold price formation pressure.

As of last week, the Fed's April meeting minutes by the support, the dollar continued upward dollar since May 3 have risen about 3.5 percent, the biggest gain this year. Fed minutes said that if future data showed the US economy improving, the Fed possible meeting in June to raise interest rates. in this context, any data regarding the performance of the US economy for the better, will form a support for the dollar and push up market interest rate expectations.

In addition, the concern is due to years of aggressive monetary policy has been close to the limit, G7 in tackling weak inflation, slowing growth and other issues of growing differences between member states .G7 meeting ultimately did not agree on exchange rate fluctuations and fiscal stimulus at the G7 meeting, hosted by Japanese Finance Minister Taro Aso to the United States to Japan believes that speculative currency fluctuations and one-way, the United States has said that the foreign exchange market is not in a state of disorder to avoid competitive devaluations.

Overall, the Fed rate hike expectations continue to simmer, put pressure on the gold price lower Fed meeting minutes of April for a future rate hike forward description, the market focus shifted to US economic data, while a series of heavy data week publication or a new round of market fuse.

Technical:

IC Markets: Fed rate hike is expected to continue to heat up the market anticipated US economic data

(XAU / USD 4-hour chart)

Reference above XAU / USD 4-hour chart: Tue spot gold prices finished slightly lower, further downstream power consumption remain low consolidation pattern as a whole.

Technically, the current price is 4 hours below the Bollinger Bands rail running rail and Brin to maintain downward short-period moving average, the price of gold to suppress the formation .MACD signal lines below the 0 axis passivation, green histogram was below the 0 axis but with the state of heavy volume shrinkage signs .KD indicators currently in an intermediate position, maintaining the trend of opening up. overall, the current gold prices remain weak overall, but the downward force weakened. operation, the days of rallies to bind the disk signal homeopathy short-based ideas safer, but to focus attention to the impact of intraday data, approach strict set a good stop.

Above the pressure level: 1270.00 / 1260.00

Below support level: 1243.00 / 1230.00

Expectation:

US heavy economic data and Fed Chairman's speech Xi Yelun current market expectations for Fed rate hike continues to heat up the fermentation, investors are focusing on the performance of US economic data. Week will announce first-quarter US GDP outlook and so have become the main clue of trading can be expected influence of US economic data on the dollar or more obvious.

In addition, the day we need to focus on Japan's manufacturing PMI in May, the French manufacturing PMI in May, the German May manufacturing PMI in the euro zone manufacturing PMI in May, the United States in May Markit manufacturing PMI in the euro zone in May consumer sentiment index and other economic data and Fed officials speak of the market guidelines.

Risk Disclosure:

An analysis of the content for informational purposes only, not as a basis for any transaction, IC Markets will not bear any responsibility for.

2 Important note published data or news event, proper risk control, slippage in the meantime the market upward, spreads and other market factors to expand or forced liquidation, IC Markets will not bear any responsibility.

3 Specific Risk Disclosure see:

http://www.icmarketsasia.com/html/icmarkets/youmustknow/Risk_Declaration/


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