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Gold, AUD/USD, USD/CAD Price Forecast: RBA Holds Rates at 4.35%

Written by FlowBroker | May 8, 2024 7:27:44 AM

Amid economic fluctuations, Gold dips to $2,326, while the RBA holds rates steady, affecting AUD and CAD's forex performance.

Buy sell gold stock market | Shutterstock

 

  • EUR/USD rises modestly to 1.0781; USD/JPY climbs, reflecting a broader strengthening of the dollar.
  • WTI and Brent oil prices decline, while Natural Gas sees an uptick; Gold and Silver drop slightly.
  • Bitcoin surges 1.26% to $64,165, signaling strong positive sentiment in the cryptocurrency market.

Currency Movements Overview

Today’s forex trading shows notable shifts with the EUR/USD edging up by 0.12%, reaching 1.0781, while the USD/JPY increased by 0.34% to 154.41, indicating a strengthening dollar. Conversely, the GBP/USD slightly declined by 0.08%, landing at 1.2551. The USD/CAD saw a modest rise of 0.15% to 1.3682, reflecting a stronger dollar against the Canadian loonie. The AUD/USD dipped by 0.05%, settling at 0.6620.

Commodity Insights: Crude oil prices saw a decline, with WTI oil dropping by 0.38% to $78.18 and Brent Oil decreasing by 0.43% to $82.97. Natural Gas, however, bucked the trend with a 0.91% increase to $2.215. In precious metals, Gold fell slightly by 0.22% to $2,326.00, and Silver also decreased to $27.582.

Cryptocurrency Update: Bitcoin (BTC/USD) experienced a significant rise of 1.26%, reaching $64,165.00, indicating a positive sentiment in the crypto market.

 

Economic Events Recap:

  • The Reserve Bank of Australia maintained its cash rate at 4.35%, aligning with prior rates and expectations.
  • German factory orders showed a decrease of 0.4% month-over-month, slightly better than expected.
  • The UK’s Halifax HPI inched up by 0.1%, signaling a stabilizing housing market.

Forex Events Ahead:

  • USD Consumer Credit is anticipated to show an increase, signaling robust consumer spending.
  • CAD will spotlight a speech by Gov Council Member Rogers, potentially impacting CAD rates.
  • German Industrial Production is forecasted to decrease by 0.6%, which could influence EUR movements.

Gold (XAU/USD) Price Forecast: Technical Outlook 

In today's trading, Gold is priced at $2,316.40, showing a slight decrease of 0.24%. A key point to watch is the pivot point at $2,330, which helps traders gauge the market's direction. Currently, gold sits just below this pivot point, suggesting some indecision in the market.

  • Pivot Point: $2,330 (Indicator of market sentiment)
  • Resistance Levels: $2,349, $2,370, and $2,393 (These are the prices at which selling might intensify)
  • Support Levels: $2,296, $2,277, and $2,260 (Prices where buying interest could increase)
  • RSI (Relative Strength Index): At 51, it shows the market isn't leaning strongly either bullish or bearish.
  • 50 EMA (50-Day Exponential Moving Average): At $2,317, this is slightly above the current price, suggesting that there could be some support around this area.

 

Gold Price Chart - Source: Tradingview

 

Considering the current market setup, a cautious approach might be to place a buy stop order at $2,325. This means you would enter a buy trade if the price reaches $2,325, aiming to take profit at $2,345. To protect against unexpected drops in price, setting a stop loss at $2,310 would be wise. This strategy could capitalize on a potential uptick in gold's price as it nears the pivot point and 50 EMA, indicating a mild bullish inclination.

 

Trading Signal:

  • Entry Price: Buy Stop $2325
  • Take Profit: $2345
  • Stop Loss: $2310

Start Trading Gold (XAU/USD) Today

 

 

AUD/USD Price Forecast: Technical Outlook 

Today's trading sees the Australian Dollar against the US Dollar (AUD/USD) at $0.65977, marking a decline of 0.05%. In observing the current market trends, it's essential to note the key price levels that could influence future movements. The pivot point, set at $0.65738, serves as the primary baseline for determining the market's sentiment, effectively distinguishing between bullish and bearish trends. 

On the upside, we have identified three crucial resistance levels. The first resistance level is at $0.66460, which is immediately followed by a second resistance at $0.66907, and a third at $0.67416. These levels could potentially cap any upward movements in the market. 

Conversely, on the downside, immediate support is located at $0.65192. Should the market experience a downturn, additional support levels are at $0.64669 and $0.64110, where we might expect buyers to step in, providing a cushion against further declines. From a technical perspective, the RSI (Relative Strength Index) is at 54, indicating a neutral to slightly bullish sentiment among traders.

 

AUD/USD Price Chart - Source: Tradingview

 

Additionally, the 50-Day Exponential Moving Average, denoted as 50 EMA, is positioned at $0.65531. This level is particularly noteworthy as it provides near support that aligns closely with the current pricing, further influencing market dynamics.

Given the proximity to the pivot point and a moderately positive RSI, a cautious buying strategy could be considered. Traders might consider entering a buy trade above the minor resistance of $0.65871. Target profits could be set around $0.66481, with a stop loss at $0.65662 to manage risk. This approach leverages potential upward momentum while safeguarding against a sudden downturn.

 

Trading Signal:

  • Entry Price: Buy Above 0.65871
  • Take Profit: 0.66481
  • Stop Loss: 0.65662


Start Trading AUD/USD Today

 

 

USD/CAD Price Forecast: Technical Outlook 

In the foreign exchange market today, the USD/CAD pair shows a modest increase, trading at $1.37095, up by 0.26%. The pivot point, which is a crucial indicator of market balance, is currently at $1.37524. This serves as a gauge for the day’s trading sentiment. Above this level, we find immediate resistance at $1.37347, with subsequent resistance markers at $1.37884 and $1.38361. These points could potentially cap upward movements should the pair gain further momentum.

On the downside, support is established first at $1.36137, with deeper support levels seen at $1.35615 and $1.35161. These could attract buying interest if the price were to retract.

USD/CAD Price Chart - Source: Tradingview

 

The technical indicators provide additional insights; the Relative Strength Index (RSI) stands at 48, indicating a neutral stance in market momentum. Moreover, the 50-Day Exponential Moving Average (EMA) closely tracks the current price at $1.36897, reinforcing the nearby support level.

For traders looking to engage with the USD/CAD pair, entering a buy position above $1.36754 could be considered, targeting a rise towards $1.37791, with a stop loss set at $1.36370 to mitigate potential declines. 

 

Trading Signal:


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