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.
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