XAUUSD Hit Hard As NFP Boosts USD Movement

  • 5
    June, 2020

    XAUUSD Hit Hard As NFP Boosts USD Movement

    By | No Comments


    With the release of the NFP and Unemployment Data, the USD was able to surge its way upward leaving the precious metal in the dust. As the US sees positive data, it’s possible to that the greenback can gain traction that can help it recover. Let’s take a look at what may happen.


    NFP and Unemployment Data Results

    The NFP or Non-Farm Payrolls represents the number of jobs outside the Farming sector which means that the higher the number of jobs generated, the better. During the last month, the US suffered  with a release of -20687K jobs. The expected forecast for this month was a bit sunnier at -7750K but still in the negative zone. Fortunately, the US exceeded the forecast and presented an actual data of 2509K.

    Aside from just the NFP, the unemployment data was also pretty rosy, which contributed to the movement of Gold tremendously dropping. The unemployment data reached 13.3% from an expected 19.4%.


    Technical Outlook for XAUUSD

    Such rosy data from the USD put a strain on the metal’s strength. Before the NFP release, XAUUSD was trading at 1704. After the release, it is now currently trading at the 1683 level and still continuing to go down. It has already broken out of the support level 1691 and has not yet consolidated. If it consolidates below that level, we can most likely see continuous downward movement until it reaches its next significant price level at 1670 to 1665 levels.


    Risk Disclaimer:

    Information on this page are solely for educational purposes only and is not in any way a recommendation to buy or sell certain assets. You should do your own thorough research before investing in any type of asset. Learn to Trade does not fully guarantee that this information is free from errors or misstatements. It also does not guarantee that the information is completely timely. Investing in the Foreign Exchange Market involves a great deal of risk which may result in the loss of a portion or your full investment. All risks, losses and costs associated with investing, including total loss of principal and emotional distress, are your responsibility.