US Dollar Mixed, Platinum Prices on Verge of Seismic Breakout


MARKET DEVELOPMENT – US Dollar, AUD/USD, NZD/USD & Platinum Analysis

US Dollar: The US Dollar receives a modest lift following better than expected retail sales data. While concerns were raised from Target’s soft earnings report, today’s data continue to underscore the strength of the US consumer.

Platinum: Having broken above $1000 for the first time in 2-years, the outlook is looking increasing bullish for the precious metal, particularly in absence of notable drawdowns across equity markets. A key technical break above trendline resistance from its 2008 record high ($2290) gave platinum an added push throughout yesterday’s session. That said, platinum has gained over 15% since South Africa’s Eskom announced its largest ever electricity blackout on December 9th. As a reminder, roughly 75% of platinum production comes from South Africa. Elsewhere, speculators have continued to buy the precious metal as they hold a record net long.

US Dollar Mixed, Platinum Prices on Verge of Seismic Breakout - US Market Open

Source: Refinitiv

US Dollar Mixed, Platinum Prices on Verge of Seismic Breakout - US Market Open

AUD: The currency has managed to consolidate above its 200DMA (0.6864) as risk sentiment remains positive with equity markets going from strength to strength. However, with sizeable options situated at 0.6930-35, alongside better than expected US retail sales, further AUD/USD may be limited. Key levels to watch. Elsewhere, NZDis the moderate outperformer following strong housing sales, highlighting that the RBNZ’s 75bps worth of easing to 1% has spurred demand within the housing market.

AUD/USD Vanilla options: 0.6875 (885mln), 0.6905-20 (1.1bln), 0.6930-35 (1bln).

Change in Longs Shorts OI
Daily3%-1%2%
Weekly-8%14%-1%

US Dollar Mixed, Platinum Prices on Verge of Seismic Breakout - US Market Open

Source: DailyFX, Refinitiv

Economic Calendar (16/01/20)

US Dollar Mixed, Platinum Prices on Verge of Seismic Breakout - US Market Open

Source: DailyFX,

WHAT’S DRIVING MARKETS TODAY

  1. Sterling (GBP) Outlook: Weaker-Than-Expected UK Inflation Data Hits GBP/USD” by Nick Cawley, Market Analyst
  2. Gold Price Analysis – Near-term Neutral to Bearish, Long-term Bullish” by Paul Robinson, Currency Strategist
  3. S&P 500 Outlook: Warning Signal Raises Risk of Market Correction” by Justin McQueen, Market Analyst

— Written by Justin McQueen, Market Analyst

To contact Justin, email him at [email protected]

Follow Justin on Twitter @JMcQueenFX





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