Market Analysis – Gold tests key level, AUD dips ahead of CPI, Oil bounces

Global markets chopped about in Tuesday’s session with no key data released with traders seemingly waiting on the sidelines for US CPI and a slew of bank earnings later in the week.

Gold – XAUUSD

XAUUSD rallied in Tuesdays APAC session testing the 2040 USD an ounce resistance level before a sharp drop as Europe opened saw drop to a low of 2026. This will be a key level to watch for the gold bulls with 2040 now establishing itself as a cap to further price increase.

AUDUSD

The Aussie dollar took a hit on mixed risk sentiment, reversing modest gains made in the APAC session on a surprise beat in building approvals and above-forecast retail sales. AUDUSD losing the 0.67 handle and holding around 2024 lows. Ahead today AUDUSD traders will a CPI reading to navigate, with Year on year inflation expected to drop to 4.4% from last months reading of 4.9%.

Crude Oil – USOUSD

Crude oil pared some of Mondays’ steep losses with Mid-East tensions continuing stoking supply concerns. USOUSD continuing to trade in its 2024 range of 70 support to the downside and 74 resistance to the upside. Geopolitical events currently being the main driver of crudes price action.

Ahead today with have Aussie CPI in the APAC session and BOE Governor Bailey speaking in the UK session.