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Daily Wrap Up: RBA kept policy unchanged, and gold extends gains

6 Apr 2021 06:46 PM

The markets saw some noticeable moves today, after yesterday's weak price movement due to the market holidays celebrating Easter.

The most prominent thing that traders followed today was the Reserve Bank of Australia decision, which kept interest rates unchanged at 0.1%, but warned that it would closely monitor the market, and indicated that the rates will remain until inflation rates reach the target between 2-3%.

In the wake of its decline following the Australian Reserve’s decisions, the Australian dollar rose from its lowest levels since yesterday against the US dollar and currently testing a strong resistance area around 0.7656 levels, which may represent the neckline of an inverted head and shoulders pattern on the 4-hour chart. Breaching this area, could push the AUDUSD reaching 0.7800 levels. Otherwise, the pair may fall back to 0.7560 levels.

Strong economic data from China and the United States pushed global stocks to new highs yesterday, as the MSCI index rose to an all-time high. In the United States, the main indices on Wall Street moved quietly after the S&P 500 and Dow Jones indices reached new record levels in light of hopes for a recovery in the economy.

Oil prices have been trading within the sideways range in which they have moved since March 18 between levels of 62-57 $ a barrel, supported by strong economic data, and are facing pressures of increasing supply on the other hand in the wake of the OPEC+ agreement to increase production and indirect talks between Iran and the United States concerning the nuclear deal, which may entail lifting sanctions on Iranian oil sales and thus increasing production.

As for the yellow metal, it continues to achieve gains in light of the weakness of the US dollar, gold rose during today's trading by about 0.9% and is currently trading around the levels of $ 1743 an ounce, and is approaching the important resistance area at $ 1755-1760, which represents the neckline of a double bottom pattern by breaking it may Open the door for prices targeting the $ 1850 levels.

Amidst the strong data emerging from major economies, the International Monetary Fund raised its forecast for global economic growth during 2021 to 6% from 5.5%, and also raised its forecast for 2022, and attributed its confidence in this to the recent stimulus package from the United States and the launch of Corona virus vaccines around the world.

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