News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • RT @FxWestwater: Gold, Iron Ore Forecast: Prices Hinge on FOMC, Evergrande Crisis, China Steelmaking Curbs Link: h…
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here:
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here:
  • We are heading into a Tuesday lull which precedes Wednesday's FOMC focus. Will the absence of distractions allow for risk trends to gain momentum or perhaps will Fed anticipation temper the $SPX tumble? My take:
  • CTV projects Trudeau wins his third term as Canada's Prime Minister - BBG
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here:
  • US House Speaker Pelosi says top-line spending number may change but hopes for $3.5 trillion in spending bill - BBG
  • RBA Minutes: - Board committed to providing high level of monetary support - Q3 GDP expected to decline materially - Central scenario is rates on hold until 2024 - BBG $AUDUSD
  • Heads Up:🇦🇺 RBA Meeting Minutes due at 01:30 GMT (15min)
  • New Zealand reports 14 new local Covid cases - BBG
Risk Appetite Lifts Oil and Metals as China Signals Yuan is Manageable

Risk Appetite Lifts Oil and Metals as China Signals Yuan is Manageable

Nathalie Huynh,

Talking Points:

  • A slightly higher yuan fix turned the market around and revived risk appetite
  • Gold lowered with safe haven assets amid growing market optimism
  • Oil was best performer as market regains confidence in China’s growth
  • Copper stabilized in usual range with support from revitalized Chinese stocks

Risk buying return in droves after People’s Bank of China fixed CNY a tad higher today. AUD, CAD and oil scored notable gains, while gold and JPY retreated. Later today, US Non-farm Payrolls (NFP) data will be another major event risk that could skew the USD and risk assets.

Oil price stayed elevated in the high 33’s as a better yuan fix from the central bank implied that Chinese growth is under control. Although further upside movement remains in question, oil has successfully detached from its multi-year low of 32.10 yesterday. Twitter rumors that OPEC is considering an emergency meeting is still not confirmed, though political tension between Saudi Arabia and Iran would undoubtedly complicate any concerted efforts to stem price rout.

Gold pricegave back its overnight’s gains as Asian market calmed down that the Chinese (and global) stock rout could be contained. Bullion will likely linger near 1100 today except for a turn of macro sentiment with upcoming NFP. Traders could follow other safe havens assets like JPY and CHF for hints of any retreat of the group.

Copper price seemed rather oblivious to market volatility, it did not trade far on either side of 2.0220 today. After a bumpy start, Chinese stocks settled into gains up to 2.4 percent in the Asian afternoon. This stability enhances support to metals and other commodities alike.

As we mentioned in our recent research, the market’s confidence in Chinese government’s ability to keep financial market afloat would benefit general perception of Chinese and global growth.

GOLD TECHNICAL ANALYSIS – Today’s high of 1113 in gold price surpassed previous resistance level at 1101, although the focus has shifted to downward movements. It is a tug of war at present between existing upward signals and a change in market sentiment to downside for gold. These forces may keep bullion in sideways fashion until next week.

Risk Appetite Lifts Oil and Metals as China Signals Yuan is Manageable

Daily Chart - Created Using FXCM Marketscope

COPPER TECHNICAL ANALYSIS – Copper price briefly dipped below 2.000 in New York though quickly pulled back to stabilized around the 2.0200 mark. Copper remains vulnerable on the downside at levels close to a multi-year low of 2.0020. If it can hold above this support level until next week, more chances for upside extensions may emerge.

Risk Appetite Lifts Oil and Metals as China Signals Yuan is Manageable

Daily Chart - Created Using FXCM Marketscope

CRUDE OIL TECHNICAL ANALYSIS WTI oil price halted four days of declines and almost mirrors yesterday’s band in today’s session. Momentum signals lightly ticked up although it is still early to tell if the oil free fall has totally finished. Immediate resistance level comes at a previous bottom/support of 34.26. A clean break above that would return oil price to its December range under $40.

Risk Appetite Lifts Oil and Metals as China Signals Yuan is Manageable

Daily Chart - Created Using FXCM Marketscope

--- Written by Nathalie Huynh, Currency Strategist for

Contact and follow Nathalie on Twitter: @nathuynh

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.