U.S. Personal Income & Spending, Chicago PMI Results
The week ends with the many key Economic Indicators from the U.S. which includes U.S. Personal Income, Personal Spending, Goods Trade Balance and Chicago PMI data. As 1330 GMT, U.S. will release Personal Income and Spending data along with Goods Trade Balance, while at 1445 GMT, U.S. will release Chicago PMI. Here I am going to brief out regarding all key indicators and their expected movement on the basis of their past behavior. Thus, one can have better idea how to trade Gold during the U.S. Fundamentals.
U.S. Personal Income & Spending Data:
Income is correlated with spending – the more disposable income consumers have, the more likely they are to increase spending. Consumer spending accounts for a majority of overall economic activity. It’s one of the most important gauges of economic health due to the vast ripple effect consumer buying creates in the economy.
It’s a leading indicator of economic health – businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company’s view of the economy. This data is derived via a survey of around 200 purchasing managers in Chicago which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.
XAU/USD (Gold): Gold weakens sharply and touches $1,755 mark ahead of U.S. key economic indicators. The pair made intraday high at $1,775 mark and low at $1,755 mark. On H1 and a day chart, triple EMA confirms the bearish trend for the time being. A sustained close below $1,754 on a day chart requires for the downside rally. Alternatively, reversal from here will take the parity back above $1,787 mark. Immediate resistance is seen at $1,772 mark. A consistent close above on H1 chart requires for the upside rally.
Key Resistances: $1,787, $1,794, $1,802, $1,808, $1,815
Key Supports: $1,754, $1,747, $1,740, $1,732, $1,727
Take a look and do trade wisely!