FxAnalysis

The Aussie Dollar keeps the trade in the upper end of its recent range following last week’s piercing of the key 0.7200 hurdle against the US Dollar.

Spot Gold trades in the $4,430 price zone on Monday, extending its slide at the start of the week as the US Dollar (USD) surges amid renewed tensions in the Middle East. Over the weekend, Iran and the United States (US) crossed fire around the Strait of Hormuz following a few weeks of tense calm.

Gold is extending Friday’s correction into early Monday, testing the lowest level in eight days near $4,400.

It has already been a positive week for the US Dollar (USD), but a hawkish speech from Chair Kevin Warsh at the Jackson Hole Symposium may have laid the groundwork for a more sustained rebound in the Buck.

The week in one sentence: speculative positioning shifted more constructively in the week to August 25. CAD short covering led the move, followed by a broad reduction in EUR shorts and renewed Gold buying.

The EUR/USD pair pulled back in the last full week of August, settling a handful of pips below the 1.1600 mark.