Daily Market Review – Asian Session – Gold hits a new all-time high again, USD remains low

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The Euro retreated from yesterday’s 15-month high against the US Dollar to dip down to the 1.4550 support level. EURUSD opened the Asian session at 1.4556, trading sideways and not higher than 1.4574. The greenback still remained weak against most majors due to concerns of the US budget deficit. With the Easter holidays coming up, most markets are closed and trading is light.

 

Sterling eased off its 16-month high against the Dollar which it reached in the US session. After peaking at 1.6598 the GBPUSD pair continued to decline until opening the Asian session at 1.6526 and traded along that level, which was on the Moving Average line (MA20). Sterling was given a boost in the European trading session after data indicated a rise in British Retail Sales, higher than expected. The Pound slipped slightly as investors hang on to the belief that the UK economy is overall still fragile and a rate hike in the near future is unlikely.

 

The Australian Dollar remained on high ground after surging to its highest level in 29 years during Thursday’s European session, aided by the rise in commodity prices. The Aussie is traditionally tied to commodity prices, especially gold. Since the precious metal hit an all- time high on Thursday, the Aussie rose, also underpinned by carry trades where investors invest in high yielding assets such as the Australian currency. AUDUSD opened the Asian session at 1.0744 and hovered around that level all throughout.

 

EURJPY traded slightly lower after declining in the US session. The pair opened at 119.08 and remained close to that level, not moving higher than 119.30 or lower than 118.81. Meanwhile USDJPY traded around the low reached in the previous session, where the pair troughed at 81.61, not breaking past that support level. The Japanese Yen’s strength is aided by the continuing weakness of the US Dollar.

 

Gold rallied in the Asian session, trading in a range after hitting a new record high in the previous session for the fifth straight session to peak at USD1508.95. The US Dollar index fell for the third day toward an all-time low. Generally, gold prices and US Dollar have an inverse relationship. Gold benefits as a hedge against the greenback’s depreciation amid concerns of the US budget deficit. In the Asian session gold reached as high as 1507.54.

EURUSD USDJPY GBPUSD AUDUSD EURJPY GOLD
OPEN

(21:00 GMT)

1.4556 81.79 1.6526 1.0744 119.08 1504.83
DAY’S HIGH 1.4574 81.95 1.6526 1.0757 119.36 1507.54
DAY’S LOW 1.4540 81.65 1.6503 1.0719 118.81 1502.93
CLOSE

(06:00 GMT)

1.4569 81.86 1.6512 1.0729 119.28 1506.76