Gold breaks the 1250 level and traders await the EU economic summit
The Asian session was devoid of any fresh catalysts, so market participants had plenty of time to price in the US position on restricting Chinese investments.
With no significant release to act on, actors from the Asian trading session followed suit with the prior sessions’ economic themes. The US had speculated a softening of US restrictions on foreign companies from acquiring US tech were shot down by White House economic adviser Larry Kudlow when he shared that establishing a review panel doesn’t reflect a softer stance against China.
Commodity prices soared higher, with crude oil getting the boost it needs from a surprise decrease in US crude oil inventories, which was published in the prior session. Gold broke 1250 level to reach 1248.60, U.S. WTI is up by 0.37% to $72.51, and Brent crude oil is up by 0.27% to $77.46.
As for Asian equities, Nikkei is still down by 0.30% to 22,206.1, but ASX 200 is up by 0.54% to 6,216.2; Hang Seng is up by 0.50% to 28,498.1 and Shanghai index is up by 0.24% to 2,819.886.
Moving ahead, investors will closely monitor the EU Economic Summit due to start for the day
EURUSD is expected to find support at 1.1515, and a fall through could take it to the next support level of 1.1465. The pair is expected to find its first resistance at 1.1650, and a rise through could take it to the next resistance level of 1.1725.
EURUSD: Intraday bias in EUR/USD remains mildly on the downside for 1.1505 low.
GBPUSD: GBP/USD drops to as low as 1.3105 so far, and focus is now on 1.3100 support.
USDCAD: Despite breaching 1.3381 to 1.3385, USD/CAD quickly retreated to the established range.
USDCHF: Intraday bias in USD/CHF remains neutral with focus on 0.9990 minor resistance.
USDJPY: Intraday bias in USD/JPY remains neutral for the moment.
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