November 30, 2021
NZD/USD: Kiwi pair shows a bullish dynamic and improvement in the market sentiment after a downtrend to the annual low around 0.6800 level. Market moods improved at the beginning of the week after medical experts bought some time before ringing the alarm on Omicron. Comments from US President Joe Biden and testimony by Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen support the risk-on environment. Moving on, New Zealand’s monthly sentiment numbers from Australia and New Zealand Baking Group may affect Kiwi traders. However, major attention will be given to China’s official Manufacturing and Non-Manufacturing PMIs. Above all, virus updates and testimony by Fed’s Powell, as well as Yellen, will be important to watch.
USD/CAD: USD/CAD tested last Friday’s highs around 1.2800 in an earlier trading session, but the pair has pulled back and is now trading around the 1.2760 level. This means that the pair is close to its recent intraday trading ranges, but it’s still higher than last week’s low of 1.2650. It’s worth noting that USD/CAD rose more than 1.0% last week after crude oil prices fell amid fears about the impact that the global spread of the Omicron Covid-19 variant would have on oil demand. Looking ahead at the rest of the week, the attention will be mainly paid to Fedspeak and US data, which is November ISM surveys and the official November jobs report. Although the November Canadian jobs report on Friday is also worth watching.
Gold: Gold shows a mixed dynamic, attempting to break its 2-month support around the $1.786 mark for the last hours. Gold tried to hold past $1.800 multiple times but failed as the US dollar benefited from the pick-up in Treasury yields. However, fears over the coronavirus variant and anxiety over the US Federal Reserve’s next move affected the gold prices. Recent comments from US President Joe Biden and Jerome Powell were helpful for gold buyers, but the US President’s stimulus, which is contrary to the hawkish statement of the Atlanta Fed President, challenged the metal prices. Moving on, China’s official PMI for November and testimonies of Fed Chair Jerome Powell and US Treasury Secretary Janet Yellen will be the key events of the day.