The US Dollar continues to slide, unaffected by US data and despite higher yields.  The Fed's preferred inflation gauge, the Core PCE, will be released on Friday. The AUD/USD maintains a bullish tone amidst thin holiday trading. The AUD/USD rebounded from near 0.6715 and climbed to 0.6800, reaching a fresh four-month high. The key driver continues to be a weaker US Dollar. The rebound in Treasury yields did not help the Greenback.  The US Dollar Index dropped to test monthly lows, falling below 102.00. Treasury yields rebounded with the 10-year yield rising from a fresh monthly low at 3.83% to 3.90%. Economic data from the US showed mixed to negative numbers, with a revision of Q3 GDP from 5.2% to 4.9%, a decline in Initial Jobless Claims, and a slight increase in the Philly Fed. The key report of the week is due on Friday, with the US Core Personal Consumption Expenditure Price Index (Core PCE). It is closely watched as it is a crucial consumer inflation indicator. Expectations are for a 0.2% monthly increase in November, with the annual rate falling from 3.5% in October to 3.3% in November. This number has the potential to impact the market. Australia will report Private Sector Credit, which is expected to show a modest acceleration compared to the previous month. USD dynamics continue to be the key driver with markets in holiday-thinned trade, which could lead to erratic moves. The Dollar remains under pressure, but a correction seems overdue. AUD/USD short-term technical outlook The AUD/USD rebounded sharply and climbed to 0.6798, reaching its highest level since late July. It later pulled back but remains near 0.6800. The daily charts show a bias towards the upside; however, the price is nearing the upper limit of a bullish channel at 0.6820, and the Relative Strength Index (RSI) is in overbought levels, suggesting some consolidation around 0.6800. As long as it stays above 0.6600, the medium-term bias remains to the upside. On the 4-hour chart, technical indicators offer mixed signals. The RSI is approaching 70, momentum is flattening, and the MACD continues to show divergences. Price is well above the 20-period Simple Moving Average (SMA), indicating potential for further gains. Immediate resistance stands at 0.6800, while support is at 0.6760, with a more relevant zone around 0.6735 (horizontal support, 20-SMA and uptrend line). A break below this level could weaken the outlook for the Australian Dollar. Support levels: 0.6760 0.6730 0.6690 Resistance levels: 0.6800 0.6820 0.68400      

MARKETS U.S. stocks rebounded on Thursday following the most significant daily sell-off in months. The market responded to reinforced expectations for deeper interest rate cuts from the Federal Reserve ahead of crucial U.S. inflation data. The S&P 500 surged at the open, sustaining those gains, partially recovering from the most substantial single-day loss since October. The market's movement suggests a comeback driven by investors reacting to the possibility of more pronounced interest rate cuts by the Federal Reserve. Wednesday's decline lacked a clear culprit, and commentators proposed various theories, including concerns about the U.S. economy after FedEx's pessimistic revenue forecast, year-end profit-taking, and zero-day options trading. While the latter appears to be the more probable cause, a combination of factors likely contributed to the sell-off. It's important to remember that the decision to sell at 2:00-2:30 in the afternoon in New York, outside of a surprise on Fed Day, is seldom a collective choice driven by a sudden market-wide realization that the rally had extended too far. However, the picture becomes more transparent with insights from zero-day options derivative traders. The most talked-about and controversial derivatives trade of the year, zero-day options, took center stage as the suspected culprits behind Wednesday's abrupt end to the U.S. equities rally. Constrained by holiday-related trading limitations, market observers pointed to substantial volumes in "put" options with a 24-hour expiration, known as 0DTE options, as a trigger for the sharpest market pullback in almost three months. According to this theory, these trades prompted market makers on the opposite side to hedge their exposure, thereby driving the market lower.  Nevertheless, the sell-off and ensuing rebound likely positioned market participants at or near the center of gravity, where natural pre-event position squaring might have occurred ahead of the crucial PCE data. The Federal Reserve's preferred inflation measure surged to around 5% at the start of the year, surpassing policymakers' 2% target. Despite a 4% six-month annualized pace for the first half of the year, this is expected to drop sharply to just 1.9% for the final six months, as various economists on Wall Street suggested. The week concludes with the last major data release for the year, the core PCE price index. If projections of a 0% monthly change for November hold, the six-month annualized calculation would settle at 2%, aligning with the Fed's definition of price stability. One might be left perplexed if this doesn't set the stage for a Santa Rally and a weaker U.S. dollar. On the flip side, however, a surprisingly hot PCE reading can potentially and significantly disrupt the proverbial bullish rate-cut apple cart. FOREX MARKET The U.S. dollar is considerably weaker ahead of the US PCE data as traders continue to catch a more pronounced case of Federal Reserve rate cut fever. The recent price action in the Yen aligns with our perspective that a postponed exit from negative rates by the Bank of Japan (BoJ) is unlikely enough, given the current external environment, to prompt a sustained sell-off for the Yen. This comes as there is growing speculation that other major central banks, primarily the Fed, may initiate rate cuts earlier and more aggressively in the coming year. The prevailing market dynamics suggest that the conditions for a significant yen sell-off are not ripe; hence, the path of least resistance for USDJPY appears lower. OIL MARKET As traders keep a close eye on the geopolitical risk premium, providing support for oil prices leading up to an extended holiday week, upward movement is encountering obstacles due to another bearish Energy Information Administration (EIA) inventory report. The report disclosed a significant increase of 9.5 million barrels (bbl) in total U.S. oil and petroleum product stocks last week, coinciding with domestic oil production hitting a new record high of 13.3 million barrels per day (bpd). During the week ending December 15, domestic oil stockpiles (excluding the Strategic Petroleum Reserve) increased by 2.9 million bbl, which was unexpected as analysts had predicted a 2.5 million bbl decrease. This rise has resulted in approximately 1% higher inventories than the five-year average. The increase was due to a surge in U.S. oil production, reaching a new record high of 13.3 million bpd the previous week. This is an increase of 200,000 bpd from the preceding week's average. According to the latest Drilling Productivity Report from the EIA, oil production in the bountiful Permian Basin is projected to reach a new record high of 5.986 million bpd at the beginning of 2024. This represents a substantial 38% increase from January 2022, with an additional 218,600 bpd. Similarly, Bakken oil production in North Dakota is expected to rise by 2,000 bpd in January, reaching a new record high of 1.308 million bpd. This projected output signifies a 19.6% year-on-year increase of 214,500 bpd in oil production in...

XAU/USD Current price: 2,042.45 The focus shifts to the US Core Personal Consumption Expenditures  (PCE) Price Index. The US Q3 Gross Domestic Product was downwardly revised from 5.2% to 4.9%. XAU/USD maintains the bullish pressure but needs to advance beyond $2,047.90. Spot Gold trimmed losses and trades above $2,040 a troy ounce. The US Dollar met market's favor throughout the first half of the day amid the poor performance of Wall Street on Wednesday, but softer US Treasury yields limited USD gains. The Greenback changed course ahead of the American session opening, following mixed United States (US) data. Initial Jobless Claims for the week ended December 15 slid to 205K, better than the 215K expected. Additionally, the Q3 US Gross Domestic Product (GDP) confirmed the annualized pace of growth at 4.9%, below the preliminary estimate of 5.2%. The gauge was not enough to spook investors, as Wall Street returned to the bullish path, while government bond yields reached fresh multi-week lows. At the time being, the 10-year Treasury note yields 3.87%, while the 2-year note offers 4.34%. Attention shifts to the US Core Personal Consumption Expenditures  (PCE) Price Index to be released on Friday. The annual reading is foreseen at 3.3% in November, easing from 3.5% in the previous month, indicating easing price pressures. The country will also publish November Durable Goods and the final estimate of the December Michigan Consumer Sentiment Index. XAU/USD short-term technical outlook The daily chart for XAU/USD shows that the risk remains skewed to the upside, as the pair trades near its recent highs, while intraday pullbacks met buyers around a bullish 20 Simple Moving Average (SMA). Technical indicators, in the meantime, lack directional strength within neutral levels, as the bright metal remains below the $2,047.90 peak. Technical readings in the 4-hour chart offer a neutral-to-bullish stance. XAU/USD is finding intraday support around a bullish 20 SMA, which advances above directionless longer ones. Technical indicators, in the meantime, remain within positive levels but without enough directional momentum. Support levels: 2,034.20 2,022.50 2,009.10 Resistance levels: 2,047.90 2,065.60 2,076.10

EUR/USD Current price: 1.0979 The United States will publish the final estimate of the Q3 Gross Domestic Product. The US Dollar remains on the back foot as Treasury yields reach fresh multi-month lows. EUR/USD maintains the upward pressure, aims to test sellers' strength around 1.1000. The EUR/USD pair recovered its bullish poise on Thursday, and nears the weekly high posted on Monday at 1.0987, as the US Dollar resumed its slide ahead of United States  (US) first-tier data. Wall Street ended its winning streak, and major indexes closed in the red in the previous session, dragging Asian and European indexes lower. The USD could not take advantage of the worsening mood as government bond yields extended their slides. In pre-opening trading, the 10-year Treasury note yielded as low as 3.86%, a fresh multi-month low, while the 2-year note offered a minimum of 4.34%, a level that was last seen in June. Market participants are now waiting for the release of the final estimate of the US Q3 Gross Domestic Product (GDP), expected to confirm an annualized pace of growth of 5.2%. The country will also publish a revision of quarterly Personal Consumption Expenditures Prices and Initial Jobless Claims for the week ending December 15. EUR/USD short-term technical outlook The EUR/USD pair seems poised to extend gains as it pressures its weekly high. Technical readings in the daily chart support the case for a bullish continuation, as technical indicators aim north above their midlines, reaching fresh December highs. At the same time, the pair develops above all its moving averages, which anyway remain directionless. Still, the 20 Simple Moving Average (SMA) converges with the 23.6% Fibonacci retracement of the 1.0447/1.1016 rally, providing support at 1.0883. The near-term picture also skews the risk to the upside. Technical indicators head firmly north within positive levels, while a mildly bullish 20 SMA continues to provide near-term support while developing above the longer ones. Support levels: 1.0950 1.0915 1.0880   Resistance levels: 1.1015 1.1050 1.1090

EUR/USD stabilized near 1.0950 after snapping a two-day winning streak on Wednesday. The near-term technical outlook fails to provide a directional bias. Q3 GDP revisions and weekly Initial Jobless Claims will be featured in the US economic docket. EUR/USD lost its traction in the second half of the day on Wednesday and closed in negative territory for the first time this week. Early Thursday, the pair moves sideways near 1.0950 as investors await macroeconomic data releases from the US. In the late American session, Wall Street's main indexes turned south, reflecting a negative shift in risk mood. Following an uninspiring performance in the European session amid retreating US bond yields, the US Dollar (USD) Index benefited from souring market mood and registered small daily gains. Early Thursday, US stock index futures trade in positive territory, pointing to an improving market mood. In turn, the USD Index struggles to build on Wednesday's gains and allows EUR/USD to hold steady. The US Bureau of Economic Analysis will release the final revision to third-quarter Gross Domestic Product (GDP). The US economy is forecast to expand at an annual rate of 5.2%. A downward revision could weigh on the USD with the immediate reaction. Market participants will also pay close attention to the weekly Initial Jobless Claims data. A reading close to 200K could support the USD, while a print above 220K could reflect looser conditions in the labor market and have the opposite impact on the currency's performance. EUR/USD Technical Analysis The Relative Strength Index (RSI) indicator on the 4-hour chart declined toward 50 and EUR/USD returned within the lower half of the ascending regression trend channel, highlighting a loss of bullish momentum. On the downside, 1.0900 (psychological level, static level) aligns as first support before 1.0870 (100-period Simple Moving Average (SMA)) and 1.0850 (200-period SMA). In case the pair manages to return within the upper half of the channel by making a 4-hour close above 1.0970 (mid-point of the channel), it could test 1.1000 (psychological level, static level) before targeting 1.1050 (static level).

Gold attracts some dip-buying amid a softer risk tone and a modest USD downtick. The fundamental backdrop favours bulls and supports prospects for further gains. Breakout through a short-term trading range is needed to reaffirm the positive bias. Gold price (XAU/USD) regains positive traction on Thursday and reverses a major part of the previous day's downfall amid the underlying bearish sentiment surrounding the US Dollar (USD). Growing acceptance that the Federal Reserve (Fed) will pivot away from its hawkish stance and start cutting interest rates as early as March 2024 drag the US Treasury bond yields to a multi-month low. In fact, the yield on the benchmark 10-year US government bond drops to its lowest level since July and undermines the Greenback, benefitting the US Dollar-denominated commodity. Apart from this, a softer risk tone around the equity markets is seen as another factor driving haven flows towards the precious metal. Meanwhile, the prospect of a global rate-cutting cycle suggests that the path of least resistance for the non-yielding Gold price remains to the upside. The median forecast in Federal Open Market Committee (FOMC) members' Summary of Economic Projections has the federal-funds rate ending 2024 at 4.6%, signalling three 25 basis points (bps) rate cuts. Meanwhile, the CME Group's FedWatch Tool indicates that the markets are pricing in a cumulative of around 150 bps rate cuts by the end of next year. Adding to this, a big drop in the UK inflation during November, to its lowest rate in over two years, lifted bets that the Bank of England (BoE) will also start cutting interest rates in the first half of next year. Furthermore, the recent run of softer-than-expected inflation data from the Eurozone, along with the softening in rhetoric from several European Central Bank (ECB) members, suggest that the risk has now shifted towards earlier rate cuts. That said, Fed and ECB officials have been pushing back against market bets for rapid interest rate cuts next year. This, in turn, is holding back bulls from placing aggressive bets around the Gold price. Traders also prefer to wait on the sidelines ahead of the US Core Personal Consumption Expenditure (PCE) Price Index, due on Friday, which might influence the Fed's future policy decision and provide a fresh directional impetus to the non-yielding yellow metal. In the run-up to the key data risk, traders on Thursday will take cues from the US economic docket – featuring the final Q3 GDP print, the usual Initial Weekly Jobless Claims and the Philly Fed Manufacturing Index. This, along with the US bond yields, will drive the USD demand and provide some impetus to the Gold price later during the early North American session. Apart from this, the broader risk sentiment should further contribute to producing short-term opportunities. Nevertheless, the aforementioned fundamental backdrop seems tilted firmly in favour of bullish traders. Technical Outlook From a technical perspective, the recent range-bound price action constitutes the formation of a rectangle pattern on short-term charts and marks a consolidation phase before the next leg of a directional move. Against the backdrop of last week's post-FOMC rally from the vicinity of the 50-day Simple Moving Average (SMA), the occurrence of a golden cross, with the 50-day SMA holding above the 200-day SMA, favours bullish traders. Furthermore, oscillators on the daily chart are holding in the positive territory and are still far from being in the overbought zone, validating the constructive outlook for the Gold price. That said, it will still be prudent to wait for a sustained breakout through the top boundary of the aforementioned trading band, around the $2,047-2,048 region, before positioning for any further appreciating move. The XAU/USD might then accelerate the positive move towards the next relevant hurdle near the $2,072-2,073. The momentum could get extended further and allow the Gold price to reclaim the $2,100 round figure. On the flip side, immediate support is pegged near the $2,028-2,027 region. This is followed by the $2,017 zone, or the lower end of the trading band, which if broken might shift the short-term bias in favour of bearish traders. The subsequent decline could then drag the Gold price to to the $2,000 psychological mark en route to the 50-day SMA, currently near the $1,992-1,991 area. The XAU/USD could then drop towards last week's swing low, around the $1,973 region, and decline further to a technically significant 200-day SMA, near the $1,957 zone.

AUD/USD Current Price: 0.6765 The US Dollar continues to face pressure as Santa's rally persists. The AUD/USD attained new monthly highs but experienced a loss of momentum. The next target is at the 0.6800 area, while the immediate key support is at 0.6730. The AUD/USD reached its peak on Wednesday at 0.6778, marking the highest intraday level in almost five months, before experiencing a modest pullback. The pair is maintaining its recent gains supported by a positive risk appetite and a weaker US Dollar. The Greenback continues to be affected by market participants reassessing positions after last week's FOMC meeting. Economic data from the US released on Wednesday showed the CB Consumer Confidence rising to a five-month high in December at 110.7. Additionally, Existing Home Sales rebounded from a five-month decline, reaching an annual rate of 3.82 million, surpassing the market consensus of 3.77 million. However, these economic figures did not aid the Dollar's performance. On Thursday, market participants will closely scrutinize the Jobless Claims data and the Philly Fed. Also scheduled is a new estimate of Q3 GDP (old news). On Friday, the Federal Reserve's preferred gauge of inflation, the Core Personal Consumption Expenditure (Core PCE), is due. Incoming information could potentially help the US Dollar in recovering some of its recent losses or trigger further declines. The Australian Dollar, on the other hand, relies on the continuation of the positive risk sentiment to maintain its focus on the 0.6800 level. AUD/USD short-term technical outlook The AUD/USD is on its way to the highest daily close since late July. The daily chart shows the pair remains within an ascending channel. The upper limit of the formation should restrict the upside around 0.6810 if the pair surpasses 0.6800. A breakout above 0.6810 could trigger a bullish acceleration. On the downside, the lower boundary of the channel stands near 0.6600, closely aligned with the 20-day Simple Moving Average (SMA). On the 4-hour chart, the bias is to the upside; however, technical indicators do not show enough conviction for the Aussie to reach fresh highs. Technical indicators, including the Relative Strength Index (RSI) and Momentum have turned south. This favors a consolidation with a slight inclination towards the downside ahead of the Asian session. A crucial support level in the short term is at 0.6730, represented by the 20-SMA and a horizontal level. Below that level, the correction could extend to 0.6700. Above 0.6780, the Aussie would recover momentum.  Support levels: 0.6730 0.6690 0.6660 Resistance levels: 0.6780 0.6810 0.6835

XAU/USD Current price: 2,032.97 Upbeat US data provided modest support to the US Dollar. United Kingdom inflation eased further in November, boosting the market's mood. XAU/USD retreats from its weekly high, holds well above $2,000. Spot Gold trades marginally lower on Wednesday, confined to Tuesday's range. The US Dollar gathered some strength at the beginning of the day, while United States (US) data released after Wall Street's opening provided additional support to the USD against safe-haven rivals. The US reported that CB Consumer Confidence improved to 110.7 in December from a downwardly revised 101.0 in November while beating the 104.6 forecast.  XAU/USD eased from an intraday high of $2,043.57, and changes hands near its daily low of $2,029.46. Financial markets recovered their optimism mid-European morning, as the United Kingdom reported that inflation in the country eased further in November. The Consumer Price Index (CPI) declined by 0.2% MoM while increasing 3.9% from a year earlier, below expectations of a 4.4% advance. On Tuesday, Canada reported the November annual CPI at 3.1%, unchanged from its previous reading, but slightly above the 2.9% forecast. Investors still await the United States (US) Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve's (FED) favourite inflation gauge, to be released on Friday. Financial markets could react aggressively to the figures, as they could confirm or deny the Fed's pivot on monetary policy. XAU/USD short-term technical outlook The daily chart for XAU/USD shows bulls retain control. The pair develops above all its moving averages, with the 20 Simple Moving Average (SMA) maintaining its bullish slope and providing dynamic support at around $2,022.50. The longer moving averages, in the meantime, head marginally higher far below the shorter one, although without enough strength. At the same time, technical indicators aim marginally lower within neutral levels, lacking enough directional strength to confirm a continued slide. In the near term, and according to the 4-hour chart, XAU/USD is neutral. The bright metal rests above a flat 20 SMA, which develops above also directionless 100 and 200 SMAs. Technical indicators, in the meantime, turned lower, but hold within positive territory with limited downward strength. Support levels: 2,022.50 2,009.10 1,996.70 Resistance levels:  2,047.90 2,065.60 2,076.10

EUR/USD Current price: 1.0938 The US Dollar gains ground despite Treasury yields retreating further. US and EU Consumer Confidence stand out in an otherwise quiet American session. EUR/USD gains bearish traction in the near term, could fall through 1.0900. The US Dollar is in better shape on Wednesday, advancing against most major rivals. EUR/USD eased from its weekly peak at 1.0987 and trades in the 1.0930 region, with the market's volatility limited ahead of the winter holidays and a United States (US) inflation update. The USD advances despite Treasury yields continuing to retreat. The 10-year note offers 3.87% ahead of the opening, down 5 basis points (bps) and at fresh multi-week lows. Meanwhile, the 2-year note yield shed 7 bps at 4.36%. Meanwhile, the Eurozone released minor figures. The October seasonally adjusted Current Account posted a surplus of €33.8 billion, better than the €31.2 billion from September. Also, Construction Output in the same month declined 1% MoM, worsening from the previous 0.9% advance. The EU will later release the preliminary estimate of December Consumer Confidence, while the US will publish December CB Consumer Confidence and November Existing Home Sales. It is worth adding that the USD also benefited from the GBP/USD slide, as the British Pound retreated sharply following the release of softer-than-anticipated inflation figures. Finally, European stocks trade mixed, limiting demand for high-yielding currencies. EUR/USD short-term technical outlook The EUR/USD pair trimmed most of its Tuesday's gains, although the bearish potential remains limited according to technical readings in the daily chart. The pair keeps developing above all its moving averages, with the 20 Simple Moving Average (SMA) currently converging with the 23.6% Fibonacci retracement of the 1.0447/1.1016 rally at around 1.0880. At the same time, the Momentum indicator aims marginally higher within neutral levels, while the Relative Strength Index (RSI) indicator turned south above its midline, suggesting the slide may continue. In the near term, and according to the 4-hour chart, however, EUR/USD is poised to extend its slide. It is currently pressuring from above a bearish 20 SMA, which reflects a firmer selling interest. Finally, technical indicators also gyrated south but so far remain above their midlines. The slide may likely accelerate on a break below 1.0915, the immediate support level. Support levels: 1.0915 1.0880 1.0845 Resistance levels: 1.0965 1.1000 1.1040

EUR/USD holds steady near 1.0950 after Tuesday's rally. The pair's recent action highlighted the strength of 1.1000 resistance. The technical outlook for the short term remains bullish. EUR/USD rose sharply but lost its bullish momentum after coming within a touching distance of 1.1000. The pair stays relatively quiet and fluctuates at around 1.0950 mid-week, while the technical outlook suggests that the bullish bias remains intact.  The renewed selling pressure surrounding the US Dollar (USD) triggered a rally in EUR/USD in the second half of the day on Tuesday. The positive opening in Wall Street, combined with retreating US Treasury bond yields, made it difficult for the USD to find demand despite the better-than-expected Housing Starts data. Early Wednesday, soft inflation data from the UK revived expectations for a Bank of England rate cut in the first half of next year and caused Pound Sterling to suffer heavy losses against its rivals. Although the USD managed to capture some of the capital outflows, the Euro also attracted investors, with EUR/GBP rising to a fresh three-week high above 0.8650.

Gold price is consolidating its two-day upswing near $2,050 early Wednesday. The US Dollar nurses losses with US Treasury bond yields despite less dovish Fedspeak. Gold price defended 21-day SMA support, and eyes a sustained break above $2,050. Gold price is catching a breather near $2,040 early Wednesday, having tested multi-day highs at $2,048 on Tuesday. The US Dollar (USD) is licking its wounds in tandem with the US Treasury bond yields, keeping Gold buyers hopeful.   Gold price shrugs off Fedspeak, as dovish Fed pivot underpins Even though the US Federal Reserve (Fed) policymakers are trying their best to push back against expectations of potential interest rate cuts next year, the market's pricing for rate reductions remains unchanged, with odds for a March Fed rate cut seen at around 75% while a May cut is almost a done deal. Sustained bets of a dovish Fed pivot in 2024 continue to undermine the US Treasury bond yields and the US Dollar amid a relatively data-light week. Therefore, all eyes stay focused on Friday's US Core PCE Price Index, the Fed's preferred inflation gauge, for cementing bets for a March rate cut. Softer Core PCE inflation data could bolster March rate cut expectations, boosting Gold price at the expense of the US Dollar. However, Gold price is set to extend its recovery mode should the US inflation come in hotter-than-expected, suggesting that the inflationary pressures still remain elevated and warrant the Fed to stay 'higher for longer'.  The Core PCE is expected to rise at an annual pace of 3.3% in November, as against a 3.5% increase in October. The Fed's inflation target is 2.0%. In the meantime, the mid-tier US housing data and Fedspeak will continue to drive the value of the US Dollar, in turn, impacting the Gold price. Amongst the noteworthy recent commentary from the Fed officials, Chicago Fed President Austan Goolsbee said that the "market has gotten ahead of themselves on euphoria" on likely interest rate cuts. Atlanta Fed President Raphael Bostic on Tuesday said "there is no current "urgency" for the Fed to reduce US interest rates given the strength of the economy," per Reuters. Gold price technical analysis: Daily chart Technically, nothing seems to have changed for the Gold price, as the path of least resistance still appears to the upside. The 14-day Relative Strength Index (RSI) indicator continues to hold above the midline while Gold price defends the 21-day Simple Moving Average (SMA), now at $2,021. A daily closing below the latter is needed to snap the recovery mode, reopening the floor for a test of the $2,000 threshold. Further down, the 50-day SMA at $1,989 will challenge bullish commitments. Conversely, acceptance above the $2,040-$2,050 supply zone is important for the Gold price to resume its journey toward the $2,100 psychological level. Further up, Gold buyers would look to take out the all-time highs of $2,144.

AUD/USD Current Price: 0.6762 The AUD/USD broke higher on Tuesday as the Santa Claus rally continues. The US Dollar remains under pressure, with the DXY approaching recent lows. Commodity prices maintain a positive short-term trend. The AUD/USD broke above 0.6730, boosted by a weaker US Dollar, and jumped to 0.6774, reaching the highest level since late July. Equity markets continue to rally, providing support to Antipodean currencies. The Reserve Bank of Australia (RBA) released the minutes from its latest meeting, where they decided to keep the key interest rate steady at 4.35%. The document showed that they considered raising interest rates but ultimately chose to keep them unchanged, with members opting to wait for further data. The market still anticipates rate cuts by the RBA next year. The "hawkish" minutes had a minor impact in boosting the Aussie. The key driver on Tuesday was the weakening US Dollar across the board, driven by risk appetite and lower Treasury bond yields. The Dow Jones is heading for another record close, and commodity prices continue to rise. Treasury yields maintain a negative trend. This context favors the upside in AUD/USD. Several Federal Reserve (Fed) officials presented their views, indicating that interest rate cuts are not the base case for now, but remain possible if inflation continues to slow towards the Fed's target. However, they are not declaring victory on inflation. Despite this, the markets still anticipate rate cuts by the central bank next year and are positioning accordingly. Housing data from the US released on Tuesday came in mixed, with Housing Starts at 1.56 million in November, above the expected 1.36 million, while Building Permits declined to 1.46 million, below the consensus of 1.47 million. More housing data is due on Wednesday with the Existing Home Sales report, along with the CB Consumer Confidence survey. AUD/USD short-term technical outlook The AUD/USD remains firm within a bullish channel, well above key simple moving averages. The upper limit of the range is around 0.6800, suggesting that if reached, it could lead to an downward correction. On the contrary, if it breaks above that level, an acceleration could occur. The Relative Strength Index (RSI) is approaching 70, indicating overbought conditions. On the 4-hour chart, the momentum remains intact after the AUD/USD broke above the important resistance area at 0.6730, which now acts as support. However, the RSI is at overbought levels. The trend is upward, and above 0.6780, the next target is 0.6800. There is scope for further gains in the short term. However, considering market conditions, some consolidation between 0.6740 and 0.6770 is also possible. Support levels: 0.6730 0.6690 0.6660 Resistance levels: 0.6770 0.6800 0.6820