Asian Forex Session Sees Strong Gains; Gold Hits Record High

Asian forex session sees NZD, AUD gains; gold hits high $3,005. Markets eye U.S. Retail Sales, Fed policy decision ahead.

The Asian forex session witnessed strong market sentiment, with key currencies experiencing significant movement. The New Zealand dollar (NZD) surged to a three-month high of 0.5827, while the Australian dollar (AUD) approached a one-month peak just below 0.64. Meanwhile, the Japanese yen (JPY) weakened against major currencies as investors embraced a risk-on mood.

Gold Prices Reach Record High

Gold prices extended their rally, reaching a historic high of $3,005 per ounce during the Asian morning session. The surge highlighted the persistent demand for safe-haven assets, even amid an overall optimistic market outlook.

European and U.S. Markets Expected to Reflect Dollar Weakness

Analysts anticipate that the European and U.S. trading sessions will echo the U.S. dollar’s weakness observed in Asia. The euro (EUR) may extend its gains above $1.0881, supported by positive sentiment and fiscal stimulus plans. British pound (GBP/USD) will likely trade within a range of 1.2880 to 1.3000 unless significant market catalysts drive movement.

The U.S. Retail Sales report, scheduled for release later today, will play a critical role in determining the dollar’s trajectory. A weaker-than-expected report could accelerate the greenback’s decline, while strong data might trigger a rebound. Gold prices will likely remain above $3,000 as strong safe-haven demand continues to drive buying interest. If risk-off sentiment prevails, the USD/JPY pair may test support at 147.70, while the Dollar Index (DXY) remains vulnerable below 105.00.

Asian Forex Session Sees Strong Gains; Gold Hits Record High

Dollar Index (DXY) Consolidates Amid Cautious Sentiment

With no major economic events on the horizon, the U.S. The Dollar Index (DXY) will likely consolidate within a technical range as it reacts to recent weakness from softer U.S. retail sales data. Furthermore, the index hovers around 103.50, with key support at 103.00 and resistance at 104.00.

Gold Holds Firm Above $3,000

Gold (XAU/USD) continues to trade within a technical range, supported by safe-haven demand and U.S. dollar fluctuations. Moreover, the metal remains elevated above $3,000 per ounce, with key support at $2,995 and resistance at $3,014.

Australian Dollar Gains on Improved Risk Appetite

The Australian dollar (AUD/USD) is maintaining a stable position, buoyed by increased risk appetite. The pair is expected to trade between key support at 0.6329 and resistance at 0.6400.

New Zealand Dollar Nears Recent Highs

The New Zealand dollar (NZD/USD) remains strong, supported by a weaker USD. The pair is trading within a technical range, with key support at 0.5766 and resistance at 0.5885.

Japanese Yen Under Pressure Amid Risk-On Sentiment

The Japanese yen (USD/JPY) faces downward pressure due to a weaker USD and improved risk sentiment. The pair is expected to trade between key support at 146.84 and resistance at 151.32.

Euro Strengthens as Dollar Weakens

The euro (EUR/USD) continues to gain ground, driven by overall market sentiment and U.S. dollar movements. The pair is expected to trade within a technical range, with key support at 1.0766 and resistance at 1.0984.

Swiss Franc Gains on Safe-Haven Demand

The Swiss franc (USD/CHF) remains under pressure due to dollar weakness. The pair is trading within a technical range, with key support at 0.8772 and resistance at 0.8866.

British Pound Range-Bound Amid Dollar Weakness

The British pound (GBP/USD) remains within a technical range, influenced by overall risk sentiment and U.S. dollar movements. Key support levels stand at 1.2780, while resistance is at 1.3000.

Canadian Dollar Awaits Retail Sales Data

The Canadian dollar (CAD) could experience volatility today as Canada releases its Core Retail Sales m/m and Retail Sales m/m data at 12:30 pm GMT. Analysts expect Core Retail Sales m/m to rise by 0.4%, while Retail Sales m/m is projected to rebound to 0.7%. Strong results could bolster CAD strength if actual data meets or exceeds expectations.

Oil Prices Remain Within Technical Range

With no major economic events scheduled, WTI crude oil is expected to trade within a technical range. Market participants remain focused on global risk sentiment, supply-demand dynamics, and U.S. dollar movements. Key support is at $65.59, while resistance stands at $68.92.

Overall, financial markets will remain highly sensitive to economic data and shifting risk sentiment as traders await the upcoming Federal Reserve policy decision. Investors will closely monitor key indicators that could influence market movements in the coming sessions.

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