Senior Trader Update - 30 May 2017

Good morning everyone.
 
A quiet start to the week with activity significantly curtailed by the absence of UK and US investors who were observing a bank holiday and Memorial Day long weekend respectively.
 
The return of investors in both centres later today and the accompanying return of liquidity at the re-commencement of trading, should provide a clearer indication regarding the veracity of Friday’s move higher.
 
On the radar will be the release of monthly employment data from the US on Friday, as investors look to gauge the potential impact on the US Federal Reserve’s monetary policy announcement scheduled for June. Market consensus for the headline Non-Farm Payrolls (May) figure is for an increase of 185K. Also of interest will be the upcoming British election on June 8th with the polls narrowing considerably in recent days.
 
Staying with Europe and the EUR has already been knocked lower in pre-market Far Eastern trading this morning on a report in Bild that Greece may opt out of its next scheduled debt repayment without a debt deal with its creditors.
 
Technically, XAU/AUD remains within striking distance of the formidable AUD 1700/1710 technical resistance zone but unless this level is breached, in broader terms XAU/AUD remains an AUD 1650 - 1710 range-trading proposition.
 
The XAU/USD Daily price action remains contained within a triangular congestion region (with trendline support pegged at USD 1228 & trendline resistance at USD 1275 for today). Momentum buying or momentum selling is likely to ensue depending on which side of the congestion region gold eventually breaks out from. Long term investors would want to be long Gold when the price finally breaks the downtrend line below.
 
Good luck.
 
Regards,
Andre