Heading into the US Session, both Gold and Silver are on the backfoot as risk sentiment is strong. Gold is currently trading at $1,787 and Silver is trading at $23.96. Silver in particular is looking like it is struggling to maintain its recent lofty levels and could face a sharp fall.
Overnight USD/JPY failed to hold above 114.00 after showing bullish signs. Whether the pair is reloading for another move upwards remains to be seen.
Austrlian inflation surprised to the downside coming in at 3% Y/Y (Expectation: 3.1% Y/Y). Australia is the rare country among others that is not showing a steep rise in inflation. AUD/USD has broken above .7500 and is currently trading at .7516.
At 8:30 AM EST, US Durable Goods orders comes out with an expectation for a decline of -1.1% M/M (Previous: 1.8% M/M). Shortly thereafter at 10:00 AM EST, the Bank of Canada will be releasing its interest rate decision with the expectation for rates to stay at the same level of 0.25%. The BOC commentary could be market moving as USD/CAD has held in a tight range between 1.2350 and 1.2400. The commentary from the central bank could be just what the pair needs to facilitate a breakout.