Gold already poised for its sixth straight week of declines slumped to fresh 5 year lows around $1054.50 in Friday’s trading session. November’s string of robust economic data from the United States has reinforced the firm expectations around the possibility of a US interest rate hike in December and this has acted as encouragement for sellers to consistently attack this yellow metal. Gold remains dictated by US interest rate expectations and further Dollar appreciation may act as a catalyst which should provide the momentum needed for prices to decline towards $1050 and possibly lower.
Chinese stocks tumbled over 6% on Friday, weighing on other Asian equity markets as a fresh wave of regulatory crackdowns and declining industrial profits in China led to depressed market sentiment. The Shanghai composite Index concluded -5.48% lower printing its biggest drop since the 25th of August when the benchmark plummeted -7.7%, whilst the Nikkei and Hang Seng followed the same pattern ending the week in red territory. This meek start to the trading session was expected to leak into the European equity arena with most anticipating the FTSE100 to start black Friday in the red. The focus may likely be direct back to China in the new trading month of December next week, as this sharp decline in the Shanghai Composite Index may attract attention to the barrage of economic data releases from China on the 1st of December.
The GBPAUD is technically bearish on the daily timeframe. Prices are trading below the daily 20 SMA and the MACD has crossed to the downside. A breakdown below the 2.075 support may open a path to the next relevant support based at 2.0500.
The AUDCHF is technically bullish on the daily timeframe. Prices are trading above the daily 20 SMA and the MACD has crossed to the upside. Prices may trade towards the next relevant level based at 0.7500.
The NZDUSD is technically bearish on the daily timeframe. Prices are trading below the daily 20 SMA and the MACD has crossed to the downside. If prices can keep below the 0.6600 resistance, there may be a further decline towards 0.6450.
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