Risk appetite has dominated global markets since the beginning of the week's trading yesterday and was completed on Tuesday morning with the People's Bank of China announcing its decision to cut the one-year average interest rate on concessional loans for the first time since 2016 by 25 basis points from 3.30% to 3.25 In a bid to push the economy away from the recessionary risks it has endured over the past period, the bank recorded the worst pace of growth in the third quarter in decades.
Demand for gold eased as market optimism returned to reach $ 1502 an ounce before beginning to show some recovery. However, it should be considered that there is no motivation to complete the gold recovery to remain the possibility of continuing to decline to the levels of $ 1480 per ounce more unless the metal closes the highest levels of $ 1517 per ounce, which will change our view to the positive in the long term.
Gold was heavily influenced by the USD rally after a series of losses over the past week, rebounding from support at 97.00 levels. The dollar index is currently testing the 100-day moving average and the declining trend line, and if it bounces back from current levels, selling pressure could return to dominate the greenback.
This comes at a time when markets are awaiting the ISM non-manufacturing data which is expected to rise again from 52.6 to 53.5 points. If the data exceeds expectations, this will be a strong impetus for the USD to continue rising to 97.64 levels.
Despite the US dollar's rise, the Australian counterpart succeeded in receiving the support that helped it to rise strongly to the resistance of 0.6920 after the optimistic tone dominated the RBA's interest rate statement while keeping interest rates unchanged at 0.75% as expected. If the price breaks above mentioned levels, it will increase the probability of visiting 0.70
The economy is expected to improve in the coming period despite the challenges facing both the slowdown in global economic growth and the export sector being adversely affected by the US-China trade war. The decline in the value of the Australian dollar contribute to the spirit of hope.
Oil prices continued to rise as optimism about increasing demand increased to cope with the continued glut of oil supply with the expansionary measures taken by the decision makers in China recently, on the one hand, on the other hand, the offer of Saudi Aramco IPO, which is one of the largest oil producers to support the destination Consider the growth of emerging markets coming period which will in turn support visiting oil prices levels of $ 57.65 a barrel, then $ 58 a barrel.
The German DAX approached touching 13200 levels, which made us expect the index to stabilize for some time before resuming its bullish trend.
Netflix shares rose in trading yesterday after the company announced expectations for a 30% rise in sales in the fourth quarter. Keep in mind, however, that the challenges facing the company continue as Apple and Disney begin to do away with and compete with Netflix services. With the negative divergence in prices, it is expected to give up some gains to reach 287 before resuming its rise to $ 300.
