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Forex Flash: Gold drop expected to knock 3.5 cents off the AUD/USD - NAB

FXstreet.com (Barcelona) - As NAB analyst note: “Since the beginning of April, gold has fallen almost $200 per ounce, at one point reaching a 2 year low of $1322, before recovering to $1410. The yellow metal is now down
15% year-to-date and 26% from its 2011 peak,” the bank says, while Gold trades last at $1408 in the spot market.

“Based on a 10 year historical correlation,” they add, “the gold price drop in isolation would be expected to knock some 3.5 cents off the AUD/USD. However, the correlation has broken down in the past two years and we are not rushing to downgrade our AUD/USD forecasts,” the analysts reckon. “More immediate downside risk arises from industrial metals prices and after China signals a ‘need to sacrifice short term growth',” they conclude.

Commodities Brief: Potential “bear flag” patterns forming on gold and silver charts

The precious metals continue to consolidate after the major losses suffered early last week. Given the reaction to China GDP last Sunday, it will be important to keep an eye on HSBC China PMI due out on April 23rd at 2:30GMT. There will also be some important data to monitor out of the US this week such as Existing Home Sales, Durable Goods, and Advanced GDP...
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Forex: AUD/USD trading in narrow range, CPI due out later in week

The Aussie is trading in a narrow range during the current Asia session. A number of economic reports which may have influence on the pair will be released later this week including China PMI, Aussie CPI, and US GDP.
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