Right as gold bears were doing victory laps, everyone’s favorite yellow metal has staged a big comeback last week. Gold ticked down to a low of 1046 ahead of yesterday’s big European Central Bank meeting, but Draghi’s failure to deliver lead to a massive 400+ pip rally in EUR/USD.
After yesterday’s massive Europen Central Bank-induced moves across all markets, traders were a bit shell-shocked heading into the always important Non-Farm Payrolls report. Today’s jobs report was even more highly anticipated than usual because it represented the last major U.S. economic release ahead of the Fed’s December monetary policy meeting, where the central bank is mulling its first interest rate hike in nearly a decade.
The weekly AUD/USD chart (below) looks stronger than it has at any point in the last year. As of writing, the rates are breaking above a 14-month bearish trend line near .7200 and approaching a three-month high around the .7400 handle. Meanwhile, the weekly RSI and MACD indicators have both turned higher to hit their highest levels in over a year.