March 22, 2022
EUR/USD: The European currency fell against the US dollar on Monday, reflecting the risk-aversion of market players as Russia-Ukraine peace talks dragged on, as well as due to a lack of important economic data except for the Fed and ECB speeches. Yesterday Fed’s Chair Jerome Powell said that the Fed would take the “necessary steps” to tame inflation towards the bank’s target of 2%, even if it needs to hike rates more than 25 basis points. Today we are not also expecting important economic data, but the second part of the week will feature US reports on durable goods orders, initial jobless claims, both new and pending home sales, as well as services and manufacturing PMI data. The local resistance level can be seen at 1.1010. If the pair reaches this level and rebounds, it can trigger a further decline towards 1.0945.
AUD/USD: The Australian dollar fell against the US dollar on Monday. The People’s Bank of China announced no change in the monetary policy and parted ways with the global bankers, which, in turn, joined firmer gold prices to help the AUD/USD in its battle with the bears. On the other hand, record high daily covid infections in China and fresh geopolitical fears regarding Saudi Arabia exert additional downside pressure on the price. The pair can correct to 0.7365, and after that, the price will probably continue its upward movement towards 0.7420.
XAU/USD: Gold prices rose yesterday due to ongoing geopolitical risks. Gold lost more than 3% last week on hopes for progress in the Russian-Ukrainian talks and US interest rate hike. Nevertheless, the yellow metal is still regarded as a safe-haven and store of value. Even if the Fed’s signals about further rate hikes become a reality, inflation will still be ahead, and real interest rates negative, maintaining a positive environment for gold in the medium term. Gold can correct to $1,915, and after that, the price will probably continue its upward movement towards $1,965.