Gold prices may be given a tailwind if US GDP data underwhelms and bolsters the case for accommodative policy measures, increasing the appeal of holding non-interest-bearing assets.
The economic docket for the final week of August may produce headwinds for the Dollar as data prints coming out of the US are anticipated to show a slowing economy.
“One man’s trash is another man’s treasure.” In a similar vein, the US Dollar’s woes due to the escalating US-China trade war leave the Euro in a place to benefit.
Things don’t look great for the Australian Dollar either fundamentally or technically. Given the lack of domestic news points 21526345this week, it will probably take a global risk appetite revival to lift it.
Crude oil is slumping into the close and next week may well see the move extend after China ramped-up their trade war with the US by imposing a fresh round of trade tariffs.
The British Pound has not escaped the influence of the escalating US-China trade war, but Brexit remains the central concern for financial markets.