U.S. dollar Strengthens Against Major Peers Despite Lower Than Expected ADP Job Results, Markets Eye U.S. ISM Services PMI Data; March 03, 2021
U.S. ISM Services PMI Data
Today U.S. will release Services PMI data at 1500 GMT/2030 IST. 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 about 300 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories. The actual reading above 50.0 indicates industry expansion, below indicates contraction.
Let’s see how Gold has reacted during the previous data release:
XAU/USD (Gold): Gold depreciates remarkably after U.S. ADP job results and touches $1,708 mark. U.S. released ADP job results with negative numbers but still U.S. dollar gets appreciated against major peers.
The pair made intraday high at $1,741 and low at $1,708 mark. Currently, triple EMA on H1 and a day chart signals bearish trend for the time being. A sustained close above $1,738 on H1 chart requires for the upside rally. Alternatively, current downside movement will drag the parity down towards key supports.
Key Resistances: $1,738, $1,748, $1,754, $1,762, $1,768, $1,772
Key Supports: $1,708, $1,698, $1,692, $1,685, $1,677, $1,670
Take a look and do trade wisely!