The US dollar stays pressured across the board, holding around early-August lows ahead of the weekend
Wall Street stocks extended the ascent on Thursday as investors continued to digest a dovish message from the Fed and upbeat economic data. According to the official report, US retail sales rose 0.3% last month versus -0.2% in October, while markets were expecting sales to decline again. Meanwhile, Applications for unemployment benefits fell by 19,000 to 202,000 for the week ending December 9. Against this backdrop, the Dow gained 0.4% to hit another record high, the S&P 500 added 0.3%, and the tech-heavy Nasdaq finished 0.2% higher.
Similarly, Asian equities advanced on Friday on persistent excitement that the Fed might cut interest rates several times next year. The Hang Seng surged 2.5% to lead gains in the region as property developers jumped after some Chinese cities eased buying restrictions. The Shanghai Composite index, however, failed to preserve the upside momentum to finish 0.56% lower even as the data showed that China’s factory output rose 6.6% in November and retail sales were up more than 10%. Elsewhere, Tokyo’s Nikkei 225 index gained 0.93%, while the S&P/ASX 200 in Australia advanced 0.88%.
Meanwhile, the US dollar stays pressured across the board, holding around early-August lows ahead of the weekend. The USD index briefly dipped below the 101.80 zone during the previous session before bouncing marginally. Now, the greenback decides on further direction around the 102.00 figure. Should the pressure intensify any time soon, the DXY may challenge fresh multi-month lows, especially as risk sentiment remains upbeat across the financial markets. On the upside, the immediate resistance now arrives in the 102.50 zone, followed by the 102.80 barrier on the way towards 103.00.
In other markets, gold prices keep benefiting from a weaker dollar these days. After a two-day ascent, the XAUUSD pair has steadied on Friday, staying well above both the $2,000 psychological level and the 20-DMA, today at $2,016. At the current levels, however, the precious metal may need some extra catalyst to attract more decisive demand and extend the rally. On the upside, the nearest hurdle arrives in the $2,050 zone, followed by the $2,075 region. At this stage, gold is unchanged for the month as the prices saw a steep decline from fresh all-time highs seen above $2,100 last week.
