Tuesday 14 November, we saw preliminary German GDP growth for Q3 2017 that is not seasonally-adjusted printed at 2.3% on a yearly basis while the previous reading was revised to 1% from 0.8% Q/Q. In addition, Euro area annual GDP growth for Q3 2017 was revised up to 2.5%, in line with the consensus forecasts. The euro climbed and even cleared its daily trend resistance on those bullish data. Whereas, the dollar declined sharply against a basket of six majors to circa daily EMA60 so far, potentially could correct its steep drop in the short term. We will get U.S. CPI and retail sales for October at 2130BJT tonight.
The dollar index (DXY) saw its short term moving averages turned lower again with strong downside momentum after convergence below its long term moving averages which were dragged down and drifted into bearish and pergent on the 4 hour chart. Given the strong short-term downside momentum, it will be interesting to watch whether or not the index could extend decline in the run-up to the major macro data from U.S. tonight.
DXY H4 Chart
As to non-U.S. currencies, the euro broke above its daily trend resistance in a swift up move. It still remained to be seen, however, whether or not the shared currency could sustain its short-term push up. The British pound recovered within a range on the 4 hour chart. It may be good to wait and see until we see the potential break-outs. The Aussie dollar noseped early this morning in the extended downtrend after the commodity traded sideways on Tuesday.
AUDUSD Daily Chart
Switching gears to precious metals now, the gold recovered off lows and cleared the short-term downtrend on the 1 hour chart within the overall wide-range trading pattern. The price action saw its short term moving averages cross above its long term moving averages on the 1 hour chart. Whether or not the yellow metal could extend up move and even clear its daily trend resistance, however, will still hinge on the major U.S. macro data tonight.
Gold Daily Chart
Disclaimer: The views and opinions expressed in this article are those of the authors and for the purpose of reference only, and shall not be relied upon by investors in making any trading decisions.