The USD Rebounds on Bloomberg Report
The US dollar reversed earlier losses on Wednesday following a Bloomberg report suggesting that the Trump administration is not seeking currency pledges in trade negotiations. This news eased fears that the administration might be quietly targeting a weaker greenback. However, despite this rebound, sharp gains in Asian currencies indicate that market doubts still linger.
Gold Breaks $3200 with Bearish Momentum
Gold has fallen beneath the $3200 mark amid rising real yields and easing geopolitical tensions. The next major test for gold will be the US PPI and retail sales data, which could have signals distorted by tariffs. It’s important to keep an eye on these developments to understand the market’s reaction.
Gold Slides as Fundamental Headwinds Build
Gold’s slide beneath $3200 can be attributed to stronger US data, rising real yields, and efforts to calm Middle East tensions by President Trump. Momentum indicators are leaning bearish, suggesting that rallies may be sold off. The 50DMA and December 2023 uptrend levels will be crucial to watch, as a break below them could open the door to $3057.50. Resistance levels are at $3200 and $3270.
Media Report Rescues USD
The US dollar rebounded after a Bloomberg report stated that the Trump administration isn’t pursuing currency commitments in trade negotiations. This news helped ease concerns about a weaker greenback. However, the recent strong moves in Asian currencies indicate that market skepticism remains. It’s essential to monitor these developments closely to understand the broader FX picture.
AUD/USD Fails at 200DMA Again
The AUD/USD pair failed to break above the 200 DMA once again, leading to a sharp reversal. Sellers are stepping in above 0.6500, with the pair now near the 50% retracement of the September–April downtrend at 0.6430. While bullish momentum has eased, the broader rebound from April lows remains intact, favoring selling into strength.
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Sources: TradingView