Be Cautious Ahead U.S. Session, Markets Eye U.S. PPI and UoM Consumer Sentiments Results; March 12, 2021
U.S. PPI and Prelim UoM Consumer Sentiment Data
Today’s U.S. session will be hectic as U.S. has scheduled to release PPI data at 1330 GMT followed by UoM Consumer Sentiment data at 1500 GMT. PPI is a leading indicator of consumer inflation – when producers charge more for goods and services the higher costs are usually passed on to the consumer. Food and energy prices make up about 40% of overall PPI which tends to mute the importance of the Core data.
On the other hand, Prelim UoM Consumer Sentiment Data is a leading indicator of consumer spending, which accounts for a majority of overall economic activity. This data is derived via a survey of about 500 consumers which asks respondents to rate the relative level of current and future economic conditions.
Let’s take a look how Gold has reacted during the previous data release:
XAU/USD (Gold): Gold spiked down sharply ahead of U.S.’s key economic indicators and hovers around $1,700 mark. The pair made intraday high at $1,728 and low at $1,699 mark. A day chart and H1 chart with triple EMA confirm the bearish trend for the time being. A sustained close above $1,708 on H1 chart requires for the upside rally. Alternatively, current downside movement will drag the parity down below $1,690 mark.
Key Resistances: $1,708, $1,715, $1,722, $1,727, $1,732, $1,740
Key Supports: $1,691, $1,685, $1,678, $1,670, $1,664
Take a look and do trade wisely!