Fundamental View:
The U.S. dollar is getting a boost from the rising yield on the 10-year Treasury bonds, which have reached their highest point since June. What supports safe-haven flows as well.
The ISM Services Purchasing Managers' Index surprised on Tuesday and showed that business activity in America remains strong at 61%.
Goldman Sachs analysts predict an increase of 60K new jobs next month, too - less than last time but still very impressive.
Considering the month of September was supposed to be weak by historical standards according to ADP's statistics from before.
ADP private payrolls are expecting to add 425K this month. In July and August, ADPs produced about half the number of new hires.
Though economists anticipated that for both months respectively, a trend that may continue into September if recent trends continue.
In April, NFP was projected by economists and Wall Street analysts alike. However, they failed at their job specs when predicting just how wrong things could go.
The FED is uncertain about its bond program, and it may be a good idea for them because if markets see this as confirmation of taper plans, they will support Treasury rates.
The Fed governors know that more people have not returned to work even though many want jobs, so there must be something stopping everyone from getting back into their old lives.
Whether rising wages or simply having enough money to make ends meet has made all the difference here (and maybe other things too).
The ADP report isn't always reliable, but sometimes you've just got to go with what kinds are available.
So, If ADP brings positive reports today, it may help NFP and overall the U.S. job market report. In addition, if job market reports support the U.S. economy, the tapering will start soon to help the USD dominate gold and other major currency.
Technical View:
From the present rate, immediate support is identifying at 1745 price. However, if ADP reports print positive or gold price breaks and stable below 1745, it will continue the down-trend again and open the door for the 1735 price zone. And finally, the downside target is the 1720/1725 price zone.
On the other hand, as long as below 1770, gold may not go upside further. 1770 is the significant resistance from the present rate as gold is far away from the 1770 price zone.
So, if ADP prints a considerable negative, we should buy gold, and 1st target should be the 1765/1770 price zone. Breaking above 1770 will open the door for the 1780 price zone.
I am not expecting gold to go above 1780/1783 very soon, at least till Friday.
The U.S. dollar is getting a boost from the rising yield on the 10-year Treasury bonds, which have reached their highest point since June. What supports safe-haven flows as well.
The ISM Services Purchasing Managers' Index surprised on Tuesday and showed that business activity in America remains strong at 61%.
Goldman Sachs analysts predict an increase of 60K new jobs next month, too - less than last time but still very impressive.
Considering the month of September was supposed to be weak by historical standards according to ADP's statistics from before.
ADP private payrolls are expecting to add 425K this month. In July and August, ADPs produced about half the number of new hires.
Though economists anticipated that for both months respectively, a trend that may continue into September if recent trends continue.
In April, NFP was projected by economists and Wall Street analysts alike. However, they failed at their job specs when predicting just how wrong things could go.
The FED is uncertain about its bond program, and it may be a good idea for them because if markets see this as confirmation of taper plans, they will support Treasury rates.
The Fed governors know that more people have not returned to work even though many want jobs, so there must be something stopping everyone from getting back into their old lives.
Whether rising wages or simply having enough money to make ends meet has made all the difference here (and maybe other things too).
The ADP report isn't always reliable, but sometimes you've just got to go with what kinds are available.
So, If ADP brings positive reports today, it may help NFP and overall the U.S. job market report. In addition, if job market reports support the U.S. economy, the tapering will start soon to help the USD dominate gold and other major currency.
Technical View:
From the present rate, immediate support is identifying at 1745 price. However, if ADP reports print positive or gold price breaks and stable below 1745, it will continue the down-trend again and open the door for the 1735 price zone. And finally, the downside target is the 1720/1725 price zone.
On the other hand, as long as below 1770, gold may not go upside further. 1770 is the significant resistance from the present rate as gold is far away from the 1770 price zone.
So, if ADP prints a considerable negative, we should buy gold, and 1st target should be the 1765/1770 price zone. Breaking above 1770 will open the door for the 1780 price zone.
I am not expecting gold to go above 1780/1783 very soon, at least till Friday.
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