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Gold, AUD/USD, USD/CAD Forecast: XAU at $2,356; PPI Rose 0.5%, CPI In Focus

Written by FlowBroker | May 16, 2024 12:17:05 PM

Gold rises to $2,356 as PPI data shows a 0.5% increase. Markets now await CPI figures for further direction.

 

  • EUR/USD rises to 1.0820 (+0.30%), indicating strong euro performance amid broader currency movements on May 14th.
  • Gold climbs to $2,356.60 (+0.58%), reflecting increased investor interest in precious metals despite overall market volatility.
  • Crude Oil WTI drops to $78.05 (-1.35%) as supply concerns and market dynamics impact energy prices.

Currency Movements Overview

On May 14th, the EUR/USD increased to 1.0820, up by 0.0032 (+0.30%), indicating a strong performance for the euro. The USD/JPY edged higher to 156.39, up by 0.19 (+0.12%), while the GBP/USD rose to 1.2583, gaining 0.0025 (+0.20%). Conversely, the USD/CAD slipped to 1.3647, down by 0.0018 (-0.13%), and the AUD/USD advanced to 0.6625, up by 0.0018 (+0.27%). The Dollar Index declined to 104.89, down by 0.213 (-0.20%), reflecting a slight weakening of the greenback.

 

 

In the commodities market, Crude Oil WTI dropped to $78.05, down by $1.07 (-1.35%), and Brent Oil fell to $82.35, down by $1.01 (-1.21%). Natural Gas slightly decreased to $2.378, down by $0.003 (-0.13%). However, precious metals saw gains, with Gold climbing to $2,356.60, up by $13.60 (+0.58%), and Silver rising to $28.767, up by $0.324 (+1.14%). In the cryptocurrency market, BTC/USD declined to $62,048.00, down by $827.00 (-1.32%).

Economic Events Recap for May 14

Several key economic data releases and events occurred today. Early in the morning, Japan reported a stable Producer Price Index (PPI) y/y at 0.9%. However, Prelim Machine Tool Orders y/y dropped significantly to -11.6%, down from the previous -3.8%.

In Europe, the German Final CPI m/m remained unchanged at 0.5%. The UK reported a Claimant Count Change of 8.9K, lower than the previous 13.9K, while the Average Earnings Index 3m/y stayed at 5.7%, matching forecasts. The Unemployment Rate slightly rose to 4.3%, up from 4.2%. In Switzerland, the PPI m/m increased by 0.6%, exceeding expectations of 0.2%.

At 11:00am, Germany's ZEW Economic Sentiment improved to 47.1 from 42.9, and the overall ZEW Economic Sentiment for the Eurozone rose to 47.0 from 43.9. The day also saw the ECOFIN Meetings take place, influencing market sentiment. In the US, the NFIB Small Business Index increased to 89.7, up from 88.5. 

Canadian Wholesale Sales m/m declined by 1.1%, against the expected -0.9%. The US Core PPI m/m rose by 0.5%, above the forecast of 0.2%, and the PPI m/m also increased by 0.5%, exceeding the expected 0.3%.

Forex Events Ahead on May 15

Looking ahead to May 15, key economic events include:

  • 3:30am AUD: Wage Price Index q/q expected to rise by 1.0%, from 0.9%.
  • 2:30pm USD: Core CPI m/m forecasted to increase by 0.3%, previously 0.4%.
  • 2:30pm USD: Core Retail Sales m/m expected to grow by 0.2%, down from 1.1%.
  • 2:30pm USD: CPI m/m anticipated to remain steady at 0.4%.
  • 2:30pm USD: CPI y/y forecasted to ease to 3.4% from 3.5%.
  • 2:30pm USD: Empire State Manufacturing Index expected to improve to -10.8, from -14.3.
  • 2:30pm USD: Retail Sales m/m expected to rise by 0.4%, down from 0.7%.

Stay tuned with FlowBank for detailed market analysis and insights.

Gold (XAU/USD) Price Forecast: Technical Outlook 

Gold (XAU/USD) is currently trading at $2,351.52, up 0.14%. The pivot point (green line) is at $2,346.20. Immediate resistance levels are $2,357.14, $2,370.00, and $2,378.68, indicating potential areas where sellers might emerge. On the downside, immediate support levels are at $2,338.57, $2,325.00, and $2,320.28, where buyers might step in. 

The upward trendline seen in the chart is likely to support the bullish trend in Gold, providing a positive outlook for further gains. 

 

Gold Price Chart - Source: Tradingview

Technical indicators suggest a mixed outlook. The RSI is at 58, showing neutral momentum, and the 50-day EMA is at $2,351.65, closely aligning with the current price, indicating stability. Given the upward trendline and current technical indicators, the entry price for a buy is above $2,338, with a target take profit at $2,370 and a stop loss at $2,325. The trendline's support and proximity to key levels suggest a continuation of the bullish trend, making these levels crucial for traders to monitor.

 

Trading Signal:

  • Entry Price: Buy Above $2338
  • Take Profit: $2370
  • Stop Loss: $2325

Start Trading Gold (XAU/USD) Today

 

AUD/USD Price Forecast: Technical Outlook 

The AUD/USD pair is currently trading at $0.66224, up 0.07%. The pivot point (green line) is set at $0.66102. Immediate resistance levels are $0.66384, $0.66586, and $0.66696, indicating potential areas where sellers may emerge. On the downside, immediate support levels are $0.65828, $0.65621, and $0.65485, where buyers might step in. The upward trendline observed in the chart suggests continued support for the bullish trend in AUD/USD.

Technical indicators show a positive outlook, with the RSI at 54, indicating momentum is on the higher side. The 50-day EMA is at $0.66102, aligning with the current price, which further supports the bullish sentiment.

 

AUD/USD Price Chart - Source: Tradingview

The pivot point, which serves as a primary reference in this analysis, is currently at $0.66102. Just above this, the immediate resistance level is found at $0.66384, with subsequent resistance levels at $0.66586 and $0.66696, respectively.  

On the downside, the immediate support level is located at $0.65828, indicating the first level where the price might find a floor if it starts to decline. Further support levels are found at $0.65621 and $0.65485, providing additional areas where buying interest might increase or prices could stabilize after a downturn. 

Given the technical setup, the entry price for a buy is above $0.65828, with a take profit at $0.66586 and a stop loss at $0.65621. 

 

Trading Signal:

  • Entry Price: Buy Above 0.65828
  • Take Profit: 0.66586
  • Stop Loss: 0.65621

Start Trading AUD/USD Today

 

USD/CAD Price Forecast: Technical Outlook 

USD/CAD is currently trading at $1.36518, up 0.03%. The pivot point (green line) is at $1.36663, indicating a crucial level to watch. Immediate resistance levels are at $1.36773, $1.37081, and $1.37102, suggesting areas where sellers might emerge. On the downside, immediate support levels are $1.36196, $1.35703, and $1.35328, indicating where buyers could step in. The symmetrical triangle pattern on the chart suggests potential for significant movement once a breakout occurs. 

 

USD/CAD Price Chart - Source: Tradingview

Technical indicators show a neutral outlook, with the RSI at 42.68, indicating the market is neither overbought nor oversold. The 50-day EMA is at $1.36663, closely aligning with the current price, suggesting stability. Given this setup, an entry price for a sell stop is $1.36773, with a take profit at $1.36196 and a stop loss at $1.37102. Monitoring these levels will be crucial for traders.

 

Trading Signal:

  • Entry Price: Sell Stop 1.36773
  • Take Profit: 1.36196
  • Stop Loss: 1.37102

Start Trading USD/CAD Today

 

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