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Friday market moves, USD fight back after retail sales. ASX stars in Monday trade, Key PMI Data to come

jeffriess
December 16, 2019
by Joseph Jeffriess, Market Analyst

Article Recap

Friday volatility - US Retail Sales Data added to the USD fightback? Oil hit new 3-month highs. - ASX200 kicks off the week with solid gains. Key EU, UK and US PMI data due tonight.

Solid gains cut after late USD fight back, today ASX kicks of the week in style.

Friday, UK election results got risk off to a flying start with the GBP leading the charge gaining just over 2.4% to the USD. The EUR and AUD followed the buying as news of a complete trade deal phase 1 complimented the exit poll result.  The weaker USD also helped Gold bounce back from a red Thursday. Despite the buying Gold remains below building long-term resistance. We cover this in more detail in today’s video. What was looking like a solid day for risk took a turn later in the session as sellers came in, weaker than expected U.S. Retails Sales data may have also contributed to the sharp selling that finished the week for the GBP, EUR and AUD to the USD. Oil followed the script hitting new 3-month highs before fading late in the session.

Today we’ve some higher gaps on open and a mixed start to the week that has seen AUD drift lower before the current buyer fightback. The GBPUSD has gained 25 pips at this point after a flat open. The ASX200 has stared today adding 1.36%, despite a surplus downgrade to 6.1B. Other key Asian indexes are mainly lower Monday trade. The Nikkei -0.15%, the Hang Seng -0.60%

Tonight could be interesting for the EUR and GBP, from 7:15 pm to 8:30 pm (AEDT) we have French, German and British Flash manufacturing and services PMI data coming out. This is followed by U.S. flash manufacturing data at 1:45 am. (AEDT) so a busy one data-wise to start the new trading week.

Today’s video, we take a look at some of the moves seen on Friday on the major FX pairs and we take a closer look at some of the resistance points we’re seeing on Gold and the US30.

Good trading from Eightcap.
All times are AEDT.