U.S. Non – Farm Employment Change
The most awaited event is here and that is U.S. NFP job data. U.S. has scheduled to release this data at 1230 GMT/1800 IST. Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity. Although it’s generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions. Unemployment rate is also a major consideration for those steering the country’s monetary policy. The actual data of unemployment rate must be lower than expected one whereas NFP job data must be higher than expected one.
Let’s see how gold has reacted during the previous data release:
XAU/USD (GOLD): Gold spikes up immediately after the news on U.S. President Trump’ positive report of Covid – 19. Today pair made intraday high at $1,917 and low at $1,889 mark. A sustained close above $1,906 requires for the upside rally. On the other side, consistent close below $1,885 will check key supports as well. Key support levels are seen around $1,876, $1,862, $1,854, $1,849, $1,840, $1,822, $1,809 and $1,787 mark respectively. Key resistances are seen at $1,922, $1,932, $1,940, $1,947, $1,957 and $1,972 marks respectively.
Take a look and do trade wisely!