June 18, 2021
EUR/USD: The European currency declined against the US dollar on Thursday. USD continued to rise, reaching its highest level in more than two months after the Federal Reserve surprised markets by signaling that it would raise rates and stop buying bonds sooner than expected. The Eurozone published May inflation data. The Consumer Price Index was confirmed at 2% year-over-year, while the core reading resulted at 1%, slightly better than expected. The USA published the June Philadelphia Fed Manufacturing Survey, which printed at 30.7, below the 31 expected. Initial Jobless Claims for the last week unexpectedly jumped to 412 thousand, worse than expected. The macroeconomic calendar for Friday includes the German May Producer Price Index and the Eurozone April Current Account. The US won’t be publishing any updates. The local support level is seen at 1.1890. If the price reaches this level and rebounds, it could push the pair higher toward 1.1934.
AUD/USD: The Australian dollar fell against the US dollar on Thursday due to the overall stronger US dollar. May employment figures showed that the country added 115.2 thousand new jobs. Moreover, the Unemployment Rate fell to 5.1%, while the Participation Rate improved to 66.2%. At the same time, the Reserve Bank of Australia Governor Philip Lowe offered a speech in which he noted that it is premature to stop bond-buying, adding that the economy is still in a recovery phase. The Australian macroeconomic calendar has nothing to offer on Friday. The strong support level can be seen at 0.7535. The bears will attempt to get past this level. The price will probably test this support and correct to 0.7585. After that, sellers could try to get through thisbarrier again.
XAU/USD: Gold fell more than 2% on Thursday, triggering a sell-off in precious metals and palladium, which was the worst day in more than a year. This decline took place after the Dollar Index rose toward the 92 level, rallying for the third day in a row. The Fed signaled at the end of its monthly policy meeting on Wednesday that it was looking out for data on when to start tapering its monthly asset purchase of $120 billion. The US Central bank has been buying at least $80 billion in Treasury bonds and $40 billion in mortgage bonds to support credit markets and the economy since the COVID-19 outbreak last year. The local support level is seen at $1765. If the price reaches this level and rebounds, it could be a signal of correction toward $1795.