Richard Perry, Market Analyst at Hantec Markets, speaks on the Fed rate hike, and shares the technical outlook for AUD/USD, Gold prices and the German DAX.
US data to foil a December Fed Rate Hike?
Perry notes how the FOMC resulted in fresh expectations for a December Fed rate hike, but the US data speaks other-wise. He says how the falling nonfarm payrolls, declining average earnings, Core PCE failing to pick up and still undershooting the Fed’s forecast proves that the fundamentals aren’t supportive of the rate liftoff yet.
There is not much wage pressure and the further slack in the economy suggests that wages won’t pick up ahead.
On the US jobs story, Perry comments how the unemployment levels remain at record levels, but while people aren’t losing jobs, new jobs aren’t being created either.
AUD/USD: Downside calling?
Perry says that the AUD’s fall was as a result of lower than expected Australian inflation data, which also boosted expectations of further RBA easing ahead.
On the key levels, Perry highlights that a break below 0.72 will likely pave way for 0.7020, and says that the trade before the RBA meeting will be interesting.
Gold: Week ahead will be key
Perry notes how Gold has not confirmed the move lower, with the RSI still remaining in the uptrend. Taking a look at the technical charts, he comments how the small candle stick bodies remains suggestive on an indecisive trade in the precious metal.
Perry believes that the week ahead will be key for the Gold bulls.
DAX: Buy dips?
Perry believes that the DAX is back up towards the 38.2% Fibonacci level, but the RSI at 70 indicates that the upside for the index might stand limited. The unfilled gap to the downside is still open, and a near-term slide remains a possibility. The DAX might see some dip buying, notes Perry.