US FUTURES HOLD STEADY AS INVESTORS CHEER INFRASTRUCTURE DEAL

US futures were relatively unchanged in early trading as investors reacted to the $1 trillion infrastructure package in the United States. The bill passed the Senate in August this year but had stagnated in the House of Representatives. The main reason is that progressive Democrats had blockaded the deal in a bid to get votes on the $3.5 trillion social package. Therefore, the package will lead to more infrastructure spending in the country, which will have a modest impact on the economy. Some of the companies that will benefit directly are Caterpillar and Dow.

The Australian dollar was relatively unchanged in early trading as the market reflected on strong China trade numbers. On Sunday, data from China showed that the country’s exports rose by about 27% in October. In the same period, imports rose from 17.6% to more than 20%. These numbers are positive for Australia because of the amount of trade that the two countries do. Still, the biggest challenge for China is that the number of Covid-19 infections in the country is increasing. This could lead to more risks for the economy.

The US dollar remained under pressure in early trading even after the US published strong economic data on Friday. The numbers showed that the American economy added more than 500k jobs last month. This was a better performance than the median estimate of about 400k. It was also the best performance since August this year. The numbers came a few days after the relatively hawkish Federal Reserve decision. It also came a few days ahead of the upcoming US inflation data.

EURUSD

The EURUSD pair held steady in early trading. The pair is trading at 1.1566, which was higher than last week’s low of 1.1515. On the hourly chart, the pair has moved slightly above the key resistance at 1.1525, where it struggled to move below in the past two months. The pair is slightly below the 25-day moving average while the MACD has moved below the neutral level. Therefore, the pair may still breakout lower later this week.

GBPUSD

The GBPUSD pair tilted higher as investors attempted to buy last week’s dips. The pair is trading at 1.3495, which is above last week’s low of 1.3425. This price is substantially lower than last week’s high of 1.3800. These losses started after the surprising BOE decision. The pair remains below the 25-day and 50-day moving averages and the Ichimoku cloud. Therefore, the pair will likely extend the bullish rally today.

XAUUSD

The XAUUSD pair tilted higher after the latest US jobs numbers. The pair is trading at 1,817, which was above October’s low of 1,716. On the daily chart, the pair is slightly below the key resistance level at 1,837. It has also moved above the short and longer-term moving averages. The pair will likely keep rising as investors target the key resistance at 1,900.