AUD/USD had a very volatile end to the week with some very weak US retail sales offering a short lived rally back above 0.7700. The AUD/USD then proceeded to slump to day lows 0.7650 closing on a weak footing technically as charts are beginning to look toppy.
Profit taking on the AUD/USD began on Wednesday from 0.7750 and now we risk a short term top being called after the failure Friday. Bigger support is seen at 0.7580 if the profit taking continues.
This week the Australian market will be focused on RBA minutes Tuesday and Employment data Thursday.
In a similar fashion, Gold pulled back after very weak US retail sales to $1340. The USD weakness flow should be concerning to Gold bulls. Nevertheless, Gold has been supportive with price consolidating near its 2016 highs. Record low bond yields and concerns over central banks easing are the main drivers.
Oil continued to rally on Friday after a strong weekly performance. IEA Oil Market Report confirmed essentially no oversupply during second half of 2016 and a third quarter draw on inventories. Saudi Energy Minister’s comments regarding informal meeting in Algeria for OPEC/non-OPEC producers might also drove short covering in the oil market.
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