FXstreet.com (London) - Collapsing Gold resumed in trading today as spot gold shed over $30, to currently trade at $1132 down from trading a $1168 high yesterday. Aussie dollar, highly correlated with gold, also shed today. In early Asian trading, AUD/USD has made a small comeback gaining 20 pips from the open to currently trade at 0.9045/8.
Gold has hit and beaten all-time highs several times in the last few weeks. The alternative asset class was widely expected to pullback at some point. Commodities usually trade a reverse correlation to the dollar.
Technical reports may suggest that a significant uprising for AUD is unlikely by momentum indicators, and thus that any early Asian uptick would be purely noise: Any significant upmove is not looking likely now as the pair is not showing much upside momentum and we expect the Resistance at 0.9220 to in the US session today. Note that the projected Max-High for the day is 0.9232.
A strong dollar would extend the pairs slide and as such we see primary support as 0.9027 (13-day MA) followed by 0.8980 (see this technical report).