XAU/USD: Strong Buy - Key Currency Focus and Technical Analysis (15-Minute Chart) May 6, 2024
EUR/USD: Neutral
The EUR/USD pair is stable around 1.0765. Investors are waiting for a trigger for further upward movement. The Eurozone's services sector activity index exceeded expectations at 52.9 points, while the U.S. index fell short at 50.9 points. Additionally, the Eurozone's Producer Price Index for March decreased by 0.7% month-on-month. Recent U.S. labor market reports, which showed non-farm employment falling below expectations, are also drawing investor attention.
GBP/USD: Neutral
The GBP/USD pair continues to see minor movements around 1.2545. The pound has received some support following the release of U.S. labor market data, but the market remains cautious. Decreases in new non-farm employment and a drop in the U.S. services sector PMI are putting pressure on the dollar. Later this week, the UK’s first-quarter GDP data and a Bank of England meeting regarding monetary policy are scheduled.
AUD/USD: Buy
The AUD/USD pair is stable around 0.6617, with focus on economic indicators from both Australia and the U.S. Australia's services sector PMI fell below expectations, and inflation data exceeded forecasts, reducing the likelihood of policy adjustments by the Reserve Bank of Australia. Meanwhile, weaknesses in U.S. labor market data are pressuring the dollar, and upcoming actions by the Federal Reserve are highly anticipated.
USD/JPY: Strong Buy
The USD/JPY pair is attempting a breakout at 154.00, but the potential for intervention by the Bank of Japan is limiting new highs. Recent economic indicators from Japan are insufficient to support the yen, and inflation remains below target. This week, the focus is on U.S. labor market data and the slowdown in U.S. economic growth.
XAU/USD: Strong Buy
The XAU/USD pair is testing the 2336.00 level, with the market awaiting the U.S. Personal Consumption Expenditures Price Index (PCE) data. This index is a key indicator of U.S. inflation and has the potential to impact gold prices. Additionally, significant deceleration in U.S. GDP data is providing support for gold prices.
