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AUD/USD and EUR/JPY ahead of the Fed meeting, Gold weakens

June 16, 2021

AUD/USD: The Australian dollar fell against the US dollar on Tuesday but it continues to be in the flat for the last couple of months. All attention will be on the Fed meeting that starts at 21:00 EEST. The recent US economics showed weaker-than-expected Retail Sales in May. However, the US Producer Price Index rose better than expected. Australia’s first Quarter House Price Index climbed from 3.6% to 7.5% year-over-year but the quarter-over-quarter gauge fell to 5.4%, which was worse than expected. It’s worth noting that the RBA minutes and fears of the escalating West versus China tussle also contributed to the pair’s weakness. The RBA minutes stepped back from highlighting the July meeting for the hints of monetary policy adjustments. China conveyed its dislike for the NATO group while the US ship headed to the South China water. The local support level is located at 0.7660. A breakout below this level could take the pair down to 0.7605.

SELL 0.7655/TP 0.7605/SL 0.7672


EUR/JPY: The European currency rose a little against the Japanese yen on Tuesday and is still at its highest levels in the last 2 years. The Euro is backed by positive data from the German Consumer Price Index that rose 0.5% inter-month and 2.5% y/y in May. Japanese Merchandise Trade Balance and Exports came in worse than expected. Import of goods and services rose and was better than previous data. All of these also put some pressure on the pair. The local support level can be seen at 133.30. A breakout below this level could take the pair down to 132.75.

SELL 133.25/TP 132.75/SL 133.42


XAU/USD: Gold prices fell on Tuesday for the third day in a row. On Monday, the benchmark 10-year US Treasury bond yield gained more than 2% and made it difficult for gold to find demand. Although the 10-year US T-bond yield stays relatively quiet near 1.5% on Tuesday, the bearish shift in the near-term technical outlook seems to be making it difficult for the precious metal to attract investors. A new vector of direction can be set by the results of the Fed meeting, which will be held today. The local support level can be seen at $1852.50. A breakout below this level could take the pair down to $1832.10.

SELL $1852.30/TP $1832.10/SL $1859.03