FOREX TODAY: GOLD RISES DESPITE A STRONGER DOLLAR, ATTENTION IS DRAWN TO POWELL AND AUSTRALIAN JOBS

The Australian jobs report is the main event of the Asian session. China will update housing prices while Japan will present trade data. Market players will keep a close eye on the Philly Fed index and US Jobless Claims later in the day. Powell, chair of the Federal Reserve, will talk next.

The largest financial market in the world is the foreign exchange market, or “FX.”

The world's currencies are traded on the decentralized, international FX market. Exchange rates fluctuate by the second, causing the market not to be stable.

The “real economy,” which includes things like foreign trade and tourism like the airport example above, accounts for a very small portion of currency transactions.

On the global FX market, the majority of currency transactions are instead undertaken for speculation.

On Thursday, October 19, you should be aware of the following:

The optimistic followed China's good growth report was undermined by rising Middle East tensions, increased rates, and the price of crude oil. The Dow Jones plummeted by 0.98%, while the Nasdaq dropped by 1.62%. WTI crude oil prices rose by 1.70%.

The US Dollar increased in result of the risk-off mood and rising US yields. The US Dollar Index (DXY) increased by 0.35 percent and surpassed 106.50, the 10-year Treasury increased to 4.92%, its highest level since 2007. Thursday's speech by Federal Reserve Chair Powell at the Economic Club of New York will be extensively scrutinized.

On Wednesday, data on the US housing market produced a variety of findings, to 1.475 million, better than the forecast of 1.45 million, while housing starts increased to 1.35 million, far behind the market estimate of 1.38 million. The Beige Book states that between September and the beginning of October, there was “little to no change”.

Thursday's US economic announcements include the weekly Jobless Claims report, the Philly Fed index, and the Existing Home Sales data. The US Dollar may continue to be in great demand if there are more signs of a booming economy and a competitive job market.

Despite the changes in the bond market, gold initially surged and hit $1,963, its highest level in two months. Later, the yellow metal retreated and leveled off around $1,950.

Once more failing to break beyond 1.0600, the EUR/USD moved downward and found support near 1.0530. Risks are still leaning downward, but consolidation may continue if the pair holds above 1.0520.

Following a higher-than-anticipated UK inflation estimate, but later lost all of its gains. Then dangerously close to the critical 1.2120.

A little under the 150.00 highest daily close since October of last year. If prices rise above that level, the Japanese government might intervene, which would cause instability.

The 20-day Simple Moving Average (SMA) was rejected by the AUD/USD pair, which then reversed direction near 0.6400 and dropped toward 0.6330. The critical level of support is at 0.6285 (lows since October). The September employment statistics for Australia will be made public early on Thursday.

Once again, the New Zealand Dollar (NZD) underperformed. The NZD/USD pair's technical outlook lowest daily closing in almost a year, below 0.5860.

The increase prices had no positive effects on the Canadian Dollar (CAD). The USD/CAD price increased and ended over 1.3700, suggesting more upside potential.