XPD / USD Consolidates Losses Around 15-Month Low Following USD Pullback
- Palladium is struggling to overcome the multi-day low, slightly bidding lately.
- Cautious optimism underlies the corrective pullback, PBOC, the Fed observed.
Palladium bears (XPD / USD) are healing their wounds near $ 1,890, up 0.42% during the day as European traders brace for Tuesday’s bell. In doing so, commodity prices exceeded the lowest levels recorded since June 2020, flashed the day before, as market sentiment improves.
After offering a pessimistic start to the week, Evergrande chairman Hui Ka Yan tried to defend the bulls while saying, according to Reuters: “Confident that the company” will emerge from the darkest moment. ” The same highlights the Chinese government’s action to rescue the real estate player, which in turn highlights the People’s Bank of China (PBOC) monetary policy meeting on Wednesday.
Rising hopes for a US stimulus, as expressed by US House of Commons Speaker Nancy Pelosi, as well as the extension of the US debt limit advocated by US Treasury Secretary Janet Yellen, could also be positive for the markets. Also, the lack of major negative catalysts and vacations in China are fighting the bears, which in turn pushes the US Dollar Index (DXY) down from the monthly high.
While portraying the mood for risk, S&P 500 futures are rising 0.30% in intraday gains while 10-year US Treasury yields consolidate latest losses around 1.31% at press time.
In addition to the aforementioned catalysts, short hedging moves near multi-month lows add to Palladium‘s corrective pullback.
However, traders remain cautious ahead of the major events of the week, which are scheduled for release on Wednesday. Among them, the monetary policy meetings of the People’s Bank of China (PBOC) and the US Federal Reserve (Fed) take center stage. The return of Chinese traders after a long weekend will also be important.
The XPD / USD fix depicts a rebound on the monthly support line, around $ 1,840, but the rally moves need to break through a two-week old resistance line near $ 1,990 to convince even short-term buyers.