Into US session: Yen retreat continues, Gold price recovers after hitting 1160

Tokyo-Japan (Aug 16)  Entering into US session, Yen continues to trade as the weakest one as market sentiments improved. Swiss Franc follows as the second weakest. Meanwhile, Australian and New Zealand Dollar are the strongest ones. Apparently, both Aussie and Kiwi are lifted by news that US and China are going too resume trade talk later in the month. This can also be clearly reflected in the recovery in the Chinese Yuan, as USD/CNH (offshore Yuan) dipped to as low as 6.8694 so far today, and broke yesterday’s low. However optimism is indeed not seen in Asian equities.

In Asia, Nikkei closed slightly down by -0.05%, Hong Hong HSI dropped -0.82%, Singapore Strait Times lost -0.69%. China Shanghai SSE also fell -0.66% to 2705.19, barely defended 2700 handle.

The picture in Europe is slightly better. At the time of writing, FTSE is up 0.65% at 7546.92. DAX is up 0.51% at 12224.54, CAC is up 0.63% at 5338.71. However, all are kept below yesterday’s high at 7632, 12428.56 and 5417.18 respectively. Today’s recoveries are merely seen as a corrective move only.

Gold dropped to as low as 1160.37 and broke 1172.09 fibonacci level. But it rides on Dollar’s pull back to recover and is back pressing 1180. Some consolidations is likely in near term. But outlook stays bearish as long as 1217.20 resistance holds. We’d still expect further fall into 1046.54/1122.81 long term support zone before bottoming.

ActionForex

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