AUD/USD Current Price: 0.6765 The US Dollar continues to face pressure as Santa's rally persists. The AUD/USD attained new monthly highs but experienced a loss of momentum. The next target is at the 0.6800 area, while the immediate key support is at 0.6730. The AUD/USD reached its peak on Wednesday at 0.6778, marking the highest intraday level in almost five months, before experiencing a modest pullback. The pair is maintaining its recent gains supported by a positive risk appetite and a weaker US Dollar. The Greenback continues to be affected by market participants reassessing positions after last week's FOMC meeting. Economic data from the US released on Wednesday showed the CB Consumer Confidence rising to a five-month high in December at 110.7. Additionally, Existing Home Sales rebounded from a five-month decline, reaching an annual rate of 3.82 million, surpassing the market consensus of 3.77 million. However, these economic figures did not aid the Dollar's performance. On Thursday, market participants will closely scrutinize the Jobless Claims data and the Philly Fed. Also scheduled is a new estimate of Q3 GDP (old news). On Friday, the Federal Reserve's preferred gauge of inflation, the Core Personal Consumption Expenditure (Core PCE), is due. Incoming information could potentially help the US Dollar in recovering some of its recent losses or trigger further declines. The Australian Dollar, on the other hand, relies on the continuation of the positive risk sentiment to maintain its focus on the 0.6800 level. AUD/USD short-term technical outlook The AUD/USD is on its way to the highest daily close since late July. The daily chart shows the pair remains within an ascending channel. The upper limit of the formation should restrict the upside around 0.6810 if the pair surpasses 0.6800. A breakout above 0.6810 could trigger a bullish acceleration. On the downside, the lower boundary of the channel stands near 0.6600, closely aligned with the 20-day Simple Moving Average (SMA). On the 4-hour chart, the bias is to the upside; however, technical indicators do not show enough conviction for the Aussie to reach fresh highs. Technical indicators, including the Relative Strength Index (RSI) and Momentum have turned south. This favors a consolidation with a slight inclination towards the downside ahead of the Asian session. A crucial support level in the short term is at 0.6730, represented by the 20-SMA and a horizontal level. Below that level, the correction could extend to 0.6700. Above 0.6780, the Aussie would recover momentum.  Support levels: 0.6730 0.6690 0.6660 Resistance levels: 0.6780 0.6810 0.6835

XAU/USD Current price: 2,032.97 Upbeat US data provided modest support to the US Dollar. United Kingdom inflation eased further in November, boosting the market's mood. XAU/USD retreats from its weekly high, holds well above $2,000. Spot Gold trades marginally lower on Wednesday, confined to Tuesday's range. The US Dollar gathered some strength at the beginning of the day, while United States (US) data released after Wall Street's opening provided additional support to the USD against safe-haven rivals. The US reported that CB Consumer Confidence improved to 110.7 in December from a downwardly revised 101.0 in November while beating the 104.6 forecast.  XAU/USD eased from an intraday high of $2,043.57, and changes hands near its daily low of $2,029.46. Financial markets recovered their optimism mid-European morning, as the United Kingdom reported that inflation in the country eased further in November. The Consumer Price Index (CPI) declined by 0.2% MoM while increasing 3.9% from a year earlier, below expectations of a 4.4% advance. On Tuesday, Canada reported the November annual CPI at 3.1%, unchanged from its previous reading, but slightly above the 2.9% forecast. Investors still await the United States (US) Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve's (FED) favourite inflation gauge, to be released on Friday. Financial markets could react aggressively to the figures, as they could confirm or deny the Fed's pivot on monetary policy. XAU/USD short-term technical outlook The daily chart for XAU/USD shows bulls retain control. The pair develops above all its moving averages, with the 20 Simple Moving Average (SMA) maintaining its bullish slope and providing dynamic support at around $2,022.50. The longer moving averages, in the meantime, head marginally higher far below the shorter one, although without enough strength. At the same time, technical indicators aim marginally lower within neutral levels, lacking enough directional strength to confirm a continued slide. In the near term, and according to the 4-hour chart, XAU/USD is neutral. The bright metal rests above a flat 20 SMA, which develops above also directionless 100 and 200 SMAs. Technical indicators, in the meantime, turned lower, but hold within positive territory with limited downward strength. Support levels: 2,022.50 2,009.10 1,996.70 Resistance levels:  2,047.90 2,065.60 2,076.10

EUR/USD Current price: 1.0938 The US Dollar gains ground despite Treasury yields retreating further. US and EU Consumer Confidence stand out in an otherwise quiet American session. EUR/USD gains bearish traction in the near term, could fall through 1.0900. The US Dollar is in better shape on Wednesday, advancing against most major rivals. EUR/USD eased from its weekly peak at 1.0987 and trades in the 1.0930 region, with the market's volatility limited ahead of the winter holidays and a United States (US) inflation update. The USD advances despite Treasury yields continuing to retreat. The 10-year note offers 3.87% ahead of the opening, down 5 basis points (bps) and at fresh multi-week lows. Meanwhile, the 2-year note yield shed 7 bps at 4.36%. Meanwhile, the Eurozone released minor figures. The October seasonally adjusted Current Account posted a surplus of €33.8 billion, better than the €31.2 billion from September. Also, Construction Output in the same month declined 1% MoM, worsening from the previous 0.9% advance. The EU will later release the preliminary estimate of December Consumer Confidence, while the US will publish December CB Consumer Confidence and November Existing Home Sales. It is worth adding that the USD also benefited from the GBP/USD slide, as the British Pound retreated sharply following the release of softer-than-anticipated inflation figures. Finally, European stocks trade mixed, limiting demand for high-yielding currencies. EUR/USD short-term technical outlook The EUR/USD pair trimmed most of its Tuesday's gains, although the bearish potential remains limited according to technical readings in the daily chart. The pair keeps developing above all its moving averages, with the 20 Simple Moving Average (SMA) currently converging with the 23.6% Fibonacci retracement of the 1.0447/1.1016 rally at around 1.0880. At the same time, the Momentum indicator aims marginally higher within neutral levels, while the Relative Strength Index (RSI) indicator turned south above its midline, suggesting the slide may continue. In the near term, and according to the 4-hour chart, however, EUR/USD is poised to extend its slide. It is currently pressuring from above a bearish 20 SMA, which reflects a firmer selling interest. Finally, technical indicators also gyrated south but so far remain above their midlines. The slide may likely accelerate on a break below 1.0915, the immediate support level. Support levels: 1.0915 1.0880 1.0845 Resistance levels: 1.0965 1.1000 1.1040

EUR/USD holds steady near 1.0950 after Tuesday's rally. The pair's recent action highlighted the strength of 1.1000 resistance. The technical outlook for the short term remains bullish. EUR/USD rose sharply but lost its bullish momentum after coming within a touching distance of 1.1000. The pair stays relatively quiet and fluctuates at around 1.0950 mid-week, while the technical outlook suggests that the bullish bias remains intact.  The renewed selling pressure surrounding the US Dollar (USD) triggered a rally in EUR/USD in the second half of the day on Tuesday. The positive opening in Wall Street, combined with retreating US Treasury bond yields, made it difficult for the USD to find demand despite the better-than-expected Housing Starts data. Early Wednesday, soft inflation data from the UK revived expectations for a Bank of England rate cut in the first half of next year and caused Pound Sterling to suffer heavy losses against its rivals. Although the USD managed to capture some of the capital outflows, the Euro also attracted investors, with EUR/GBP rising to a fresh three-week high above 0.8650.

Gold price is consolidating its two-day upswing near $2,050 early Wednesday. The US Dollar nurses losses with US Treasury bond yields despite less dovish Fedspeak. Gold price defended 21-day SMA support, and eyes a sustained break above $2,050. Gold price is catching a breather near $2,040 early Wednesday, having tested multi-day highs at $2,048 on Tuesday. The US Dollar (USD) is licking its wounds in tandem with the US Treasury bond yields, keeping Gold buyers hopeful.   Gold price shrugs off Fedspeak, as dovish Fed pivot underpins Even though the US Federal Reserve (Fed) policymakers are trying their best to push back against expectations of potential interest rate cuts next year, the market's pricing for rate reductions remains unchanged, with odds for a March Fed rate cut seen at around 75% while a May cut is almost a done deal. Sustained bets of a dovish Fed pivot in 2024 continue to undermine the US Treasury bond yields and the US Dollar amid a relatively data-light week. Therefore, all eyes stay focused on Friday's US Core PCE Price Index, the Fed's preferred inflation gauge, for cementing bets for a March rate cut. Softer Core PCE inflation data could bolster March rate cut expectations, boosting Gold price at the expense of the US Dollar. However, Gold price is set to extend its recovery mode should the US inflation come in hotter-than-expected, suggesting that the inflationary pressures still remain elevated and warrant the Fed to stay 'higher for longer'.  The Core PCE is expected to rise at an annual pace of 3.3% in November, as against a 3.5% increase in October. The Fed's inflation target is 2.0%. In the meantime, the mid-tier US housing data and Fedspeak will continue to drive the value of the US Dollar, in turn, impacting the Gold price. Amongst the noteworthy recent commentary from the Fed officials, Chicago Fed President Austan Goolsbee said that the "market has gotten ahead of themselves on euphoria" on likely interest rate cuts. Atlanta Fed President Raphael Bostic on Tuesday said "there is no current "urgency" for the Fed to reduce US interest rates given the strength of the economy," per Reuters. Gold price technical analysis: Daily chart Technically, nothing seems to have changed for the Gold price, as the path of least resistance still appears to the upside. The 14-day Relative Strength Index (RSI) indicator continues to hold above the midline while Gold price defends the 21-day Simple Moving Average (SMA), now at $2,021. A daily closing below the latter is needed to snap the recovery mode, reopening the floor for a test of the $2,000 threshold. Further down, the 50-day SMA at $1,989 will challenge bullish commitments. Conversely, acceptance above the $2,040-$2,050 supply zone is important for the Gold price to resume its journey toward the $2,100 psychological level. Further up, Gold buyers would look to take out the all-time highs of $2,144.

AUD/USD Current Price: 0.6762 The AUD/USD broke higher on Tuesday as the Santa Claus rally continues. The US Dollar remains under pressure, with the DXY approaching recent lows. Commodity prices maintain a positive short-term trend. The AUD/USD broke above 0.6730, boosted by a weaker US Dollar, and jumped to 0.6774, reaching the highest level since late July. Equity markets continue to rally, providing support to Antipodean currencies. The Reserve Bank of Australia (RBA) released the minutes from its latest meeting, where they decided to keep the key interest rate steady at 4.35%. The document showed that they considered raising interest rates but ultimately chose to keep them unchanged, with members opting to wait for further data. The market still anticipates rate cuts by the RBA next year. The "hawkish" minutes had a minor impact in boosting the Aussie. The key driver on Tuesday was the weakening US Dollar across the board, driven by risk appetite and lower Treasury bond yields. The Dow Jones is heading for another record close, and commodity prices continue to rise. Treasury yields maintain a negative trend. This context favors the upside in AUD/USD. Several Federal Reserve (Fed) officials presented their views, indicating that interest rate cuts are not the base case for now, but remain possible if inflation continues to slow towards the Fed's target. However, they are not declaring victory on inflation. Despite this, the markets still anticipate rate cuts by the central bank next year and are positioning accordingly. Housing data from the US released on Tuesday came in mixed, with Housing Starts at 1.56 million in November, above the expected 1.36 million, while Building Permits declined to 1.46 million, below the consensus of 1.47 million. More housing data is due on Wednesday with the Existing Home Sales report, along with the CB Consumer Confidence survey. AUD/USD short-term technical outlook The AUD/USD remains firm within a bullish channel, well above key simple moving averages. The upper limit of the range is around 0.6800, suggesting that if reached, it could lead to an downward correction. On the contrary, if it breaks above that level, an acceleration could occur. The Relative Strength Index (RSI) is approaching 70, indicating overbought conditions. On the 4-hour chart, the momentum remains intact after the AUD/USD broke above the important resistance area at 0.6730, which now acts as support. However, the RSI is at overbought levels. The trend is upward, and above 0.6780, the next target is 0.6800. There is scope for further gains in the short term. However, considering market conditions, some consolidation between 0.6740 and 0.6770 is also possible. Support levels: 0.6730 0.6690 0.6660 Resistance levels: 0.6770 0.6800 0.6820