It has been a busy week on worldwide markets to date, with the experts still unsure about how the US-China trade negotiations might play out.
Tariffs are expected to be raised this weekend, on the back of China reneging on large portions of the already agreed upon details of the trade deal. That certainly didn’t please Donald Trump who has again blasted the Chinese on Twitter today but added that there is still nothing to worry about.
Chinese vice-premier Liu He will visit Washington for two days of talks where the last chance at holding off the tariff hikes will be attempted.
The main data out today will be US PPI, which is an important inflation measure. As we know, the FOMC is looking very closely at their next interest rate move and strong inflation will help keep rates at the current levels.
Jerome Powell will also be speaking today, so there could well be plenty of fireworks early in the US session.
Forex Signal Update
The FX Leaders Team finished the session with one win from one signal with a positive trade in Gold.
NZD/USD – Active Signal
On the back of an RBNZ rate cut, the NZD/USD was always going to be weak. We shorted the retrace which is always a nice move as the key support at 0.6600 had been broken. Looking for more downside here today.
Gold – Active Signal
GOLD has been in play this week as the flight to safety has heated up a fair bit on the back of the US-China showdown. Gold did fall away yesterday a touch, but price has been bouncing off this 1280 level which is providing decent support.
Despite the news of yet another hacking scandal BTC pushed back above the $6,000 level and is making new highs in Asian trade.
As I’ve been saying, the fact that price keeps breaking out despite the negative headlines is a sign of strength in the short-term.
Today’s breakout will open the door for another leg higher, however, price will first have to hold on. This should be an interesting session in as Europe and the US come online, to see if the buyers continue to step up here.