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Gold slipped on Friday as the U.S. Dollar rallied, supported by strong U.S. jobs data, putting gold on track for its first weekly loss in five as Hedge funds and money managers raised their net sell short positions in Com ex gold and silver contracts in the latest week.
Oil prices fell 6% last week as investors worried about oversupply after the United States said it will temporarily spare eight jurisdictions from Iran related sanctions whilst Hedge funds continue to cut their bullish bets on crude oil in the latest week to a one-year low.
The Pound retreated to around 1.29900 as indicated in Friday's session and bounced, pushing prices back up towards 1.30547 during the Asian session. The Pound failed to continue to 1.30457 price target and fell at the end of Friday's session to its 500 EMA.
The Pound finished Friday's session above its 500 EMA at 1.29698 and could head back up to 1.29900 and 1.30547 in today's session if it maintains above 1.29438 support. The pair could also head down to 1.29215 and 1.28950 if it fails to maintain above 1.29438 support
The yuan traded slightly lower while the dollar remained unchanged on Monday after Chinese President Xi Jinping said at the China International Import Expo that Beijing would lower import tariffs and continue to broaden market access.
The USD/CNY pair was up 0.01% at 6.8931 by 12:30 AM ET (04:30 GMT). The People's Bank of China (PBOC) raised the daily yuan reference rate by 395 pips to 6.8976 from Friday's fix of 6.9371.
Meanwhile, official data released on Friday revealed that U.S. jobs growth rebounded in October and wages recorded their largest annual gain in 9-1/2 years.
"The jobs data has reaffirmed the dollar's strength due to the rates differential factor going forward. The risk is that the markets may be caught surprised by a more hawkish Fed," said Rodrigo Catril, senior currency strategist at NAB.
The USD/JPY pair was up 0.1% at 113.3. The Bank of Japan’s Kuroda said at a speech at a business leaders' meeting in Nagoya that uncertainty from overseas and impact on Japan's economy continue to rise and that the central bank is aware that continued easing policies affect financial system stability. Going forward, the BoJ would continue monitoring risks of economic destabilization, the balance of effects and costs of its current policy.
For a move higher we would like to see the AUD break above 0.7229, followed by a break and close above 0.7282. A strong break and close above this level could see a quick move to 0.7364 before a pause; and if momentum remains strong we will look for a move back up into 0.7447.
If we cannot hold above 0.7229, we will look for a move back down to 0.7169. A strong break below this level may result in a move back down into 0.7112 before another potential pause. Any subsequent breaks of this level however may result in a very fast move down to 0.7070.