Gold (XAU/USD) Strong Buy: Currency Analysis and Technical Outlook (1-Hour Chart) – September 23, 2024
EUR/USD – Strong Sell
The EUR/USD pair is attempting to break through 1.1165. According to the S&P Global data for September, the Eurozone’s manufacturing PMI decreased from 45.8 to 44.8, while the services PMI rose slightly from 52.9 to 50.5, leading to a composite PMI drop from 51.0 to 48.9. The Federal Reserve (Fed) lowered the interest rate to 5.00% during last week’s meeting and hinted at a possible reduction to 4.40% by the end of 2024. The market is closely watching the results of U.S. economic indicators.
GBP/USD – Buy
The GBP/USD pair is stable around 1.3315. The pound is supported by the outcome of last week’s Fed meeting, which saw a 50 basis point cut in interest rates. Investors anticipate further rate cuts. In the UK, the Consumer Price Index (CPI) remained stable at 2.2% year-on-year, with core CPI rising to 3.6%. The Bank of England has decided to keep rates steady, but the likelihood of additional cuts is considered low.
AUD/USD – Strong Buy
The AUD/USD pair is trying to break above 0.6835. With the Fed’s rate cuts leading to a weaker dollar, the Australian dollar is gaining support. However, Australia’s business activity data for September showed a decline in both manufacturing PMI from 48.5 to 46.7 and services PMI from 52.5 to 50.6. Despite this, the Fed’s actions could lead to short-term increases in the AUD.
USD/JPY – Sell
The USD/JPY pair is testing 144.20. Despite the Fed’s rate cut last week, the dollar remains stable. The Bank of Japan has kept rates at 0.25% while monitoring the economic situation. Japan’s CPI exceeded expectations, indicating ongoing inflationary pressure.
XAU/USD – Strong Buy
The XAU/USD pair is testing the level of 2630.00. The Fed’s announcement of a 50 basis point rate cut continues to support gold prices. Additionally, instability in the Middle East and concerns regarding the U.S. presidential election are increasing demand for gold as a safe-haven asset.
