FXstreet.com (London) - Gold bullion has traded flat so far this session after rebounding from 6 ½ week lows of $1074 touched in the previous session. Spot gold currently trades at 1086.88, up just over a dollar from the open.
As a currency commodity, the Australian Dollar tends to trade in line with gold due to the strong impact of Gold prices on the economy.
AUD/USD has traded extremely bearish in the last several sessions, owing largely to renewed Dollar strength off the back of a string of positive macro data for the worlds biggest consumer, the USA.
The pair currently trades at 0.8766, flat from the open. The pair is expected to trade in a very tight range this session due to the Asian holidays.
In the case of a breakout or unexpected price action, Kshitij Consultancy gives us insight on the technical barriers: The Fibonacci fan line Support at 0.8765 which was tested in the early Asian session today, continued to hold and Aussie has risen during the day. However, it has fallen now from the high of 0.8833. Failure to sustain on the upside above 0.8800 is increasing the chances a break below the Support at 0.8765 and see further downmove towards 0.8700.