November 24, 2021
EUR/USD: The European currency fell against the US dollar on Monday due to growing market concerns over the impact of new COVID-19 restrictions in Europe. Meanwhile, in the US, Federal Reserve Chair Jerome Powell was nominated for a second four-year term by President Joe Biden. Market participants believe this can positively affect the strengthening of the US dollar in the future because there is greater scope for US rate hikes under Powell. US officials yesterday noted the destructive impact of high inflation on the US economy and American families may be a signal that controlling the rapid pace of price increases is now the central bank’s top priority. Today we expect figures on the Manufacturing Purchasing Managers Index from Germany, Eurozone and US. The local resistance level can be seen at 1,1275. If the pair reaches this level and rebounds from it, it can trigger a further decline towards 1.1215.
AUD/USD: The Australian dollar fell against the US dollar yesterday due to the general greenback’s strengthening and falling gold prices. Australia did not publish any macroeconomic data on Monday, but it did release preliminary November PMI’s at the beginning of the Asia session today. The figures did not have much of an impact on the pair. The local resistance level can be seen at 0.7250. If the pair reaches this level and rebounds from it, it can trigger a further decline towards 0.7185.
XAU/USD: Gold prices fell more than 2% on Monday as the market expected the clues on whether the US Federal Reserve would stay the course on tapering economic support. The Fed minutes will be an event for the greenback and yellow metal this week. Traders will be looking for more signals to the rate hike timeline. Also, downside pressure on the gold was the firmer US data relating to manufacturing and housing, published on Monday. The US Chicago Fed National Activity Index rose in October. And the US Existing Home Sales were better than market expectations and rose 0.8% to a seasonally adjusted annual rate of 6.34 million units last month. The local support level can be seen at $1800. A breakout below could take the pair to an immediate target of $1790.