A Quick Brief Out – U.S. ADP Job Results, Fed Chair Powell’s Testimony & Russia – Ukraine Progress; March 02, 2022

U.S. ADP Non Farm Employment Change & Powell’s Testimony

Today U.S. will come up with the ADP Non Farm Employment Change data at 1315 GMT/1845 IST and thereafter U.S. Fed Chair Powell’s testimony at 1500 GMT/2030 IST.

ADP Job data provides an early look at employment growth, usually 2 days ahead of the government-released employment data that it’s designed to mimic. Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity. ADP analyzes payroll data from more than 23 million workers to derive employment growth estimations.

Let’s see how Gold has reacted during the previous data release:

Feb 02:

Jan 05:

Fed Chair Powell’s Testimony:

On one side, U.S. will come up with the key economic indicators while on the other side, Russis is very firm on its decision to have a war with the Ukraine. Today in early Asian hours, U.S. President Biden addressed nation on easing of Covid – 19 restrictions, nomination of the first Black woman to the Supreme Court and new restrictions impored by U.S. on Russia. Now Traders are looking at Fed Chair Powell’s Testimony. The key focus will be on the first Interst Rate hike by Fed. The most likely forecast for interest rate is the Fed should raise interest rates by half a point this month. Today Powell will again reassure traders for the Fed’s continuous efforts to fight high inflation. There are lot of uncertainties ahead amid the effects of war on the Financial markets and Putin’s next step. According to the current market scenario, Powell must make a strong commitment to tightening that may provide a lift to Treasury yields and the U.S. dollar both.

Key Headlines on Russia – Ukraine:

• Russia says it controls Ukraine’s Kherson – Reuters.
• Russian shelling kills 21 people in Kharkiv – Ukraine official – Reuters.
• Russia Delegation reasy to resume talks Wednesday evening with Ukraine – Marketwatch.
• A week after launching its invasion of Ukraine, Russia said its forces took control the first sizable city on Wednesday, seizing Kherson, in the south, as fighting raged around the country and Western nations tightened an economic noose around Russia – Reuters.
• Ukrainian President Volodymyr Zelenskiy said nearly 6,000 Russians had been killed in the first six days of Moscow’s invasion, and that the Kremlin would not be able to take his country with bombs and air strikes – Reuters.
• A U.S. official said a miles-long armoured column bearing down on the capital Kyiv had not made any advances in the past 24 hours, frozen in place by logistics problems, short on fuel and food, and perhaps pausing to reassess tactics – Reuters.
• More than half a million Ukrainians have fled the fighting since the invasion began, most crossing into Poland and Romania.
• European Union countries are considering a ban on Russian ships entering their ports, after similar moves by Canada and the United Kingdom – Reuters.

Technical View:
XAU/USD (Gold):

• The Gold sikes down sharply and touches $1,913 mark in early U.S. session.
• Today pair made intraday high at $1,948 and low at $1,913 mark.
• A day chart and H1 chart with triple EMA suggest bullish trend for the time being.
• A sustained close above $1,945 on H1 chart requires for the upside rally.
• Alternatively, a consistent close below $1,917 on H1 will check further supports.

Take a look and do trade wisely!
Good Luck