In the early hours of Wednesday, local time in the United States, the closely watched ADP National Employment Report for December was released, showing a slowdown in both job growth and wage increases in the American labor marketAccording to the ADP report, the private sector added only 122,000 jobs in December, a decline from the 146,000 jobs added in November and significantly lower than the economists' forecast of 136,000. This marks the smallest increase since August of last yearFurthermore, wage growth has also decelerated, with a year-on-year increase of just 4.6%, which is the lowest since July 2021. Neela Richardson, the chief economist at ADP, noted that as 2024 concludes, the labor market is easing into a more temperate pace of growth, indicating a slowdown in both hiring and wage increasesAmid heightened volatility in the global developed nations’ bond markets, the data provided a sense of relief to investors

Following the release, the yield on the ten-year U.STreasury bonds dipped slightly, although it remained around 4.71%, close to the highest level seen since April of last year.

Additionally, Federal Reserve Governor Christopher Waller expressed confidence that inflation will continue moving toward the Fed's target of 2%, which has led him to support further interest rate cuts this yearIn remarks prepared for a Paris event hosted by the Organisation for Economic Co-operation and Development, Waller stated, "As always, the extent of any further easing will depend on the progress data indicates toward achieving our 2% inflation target, but my ultimate conclusion is that I believe further rate cuts are appropriate." Last year, the Fed implemented three consecutive rate cuts, and the latest projections suggest that most policymakers anticipate two more cuts in 2025, although opinions on the matter greatly differ

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Waller acknowledged this divergence, stating, "If the outlook develops as I have described, I would support a continuation of rate cuts in 2025. The pace of rate cuts will depend on the progress we make on inflation while preventing weaknesses in the labor market."

Today, analysts will be keeping a close eye on a series of important economic data releases, including Germany's adjusted industrial output for November, the adjusted export figures from November, retail sales figures for the Eurozone in November, and the Challenger job cuts data for December in the United States.

In the realm of precious metals, yesterday marked a significant surge in the gold marketAfter several days of consolidation, the price of gold began a turbulent upward journey, achieving its highest level in four weeks.

Currently, gold prices are stabilized around 2659. This upward movement is driven by a confluence of factors

On the one hand, persistent international tensions, geopolitical conflicts, and global trade frictions have kept investors' risk aversion alive, prompting a stampede into gold as a safe havenThis continuing demand has provided robust support to gold prices.

On the other hand, the soft performance of the ADP employment data in the United States, showing job growth far below expectations and a potential uptick in unemployment, has sparked concerns about the slowing pace of the U.Seconomic recoveryThis, in turn, has further highlighted gold's allure as a safe asset, acting as a significant catalyst for its price increaseNevertheless, the trajectory of gold's rise has not been smoothExpectations of a cooling off in the Fed's interest rate cuts have put a limit on gold's ascentPreviously, the market was eager for rate cuts from the Fed; now that optimism is fading, resulting in a renewed interest in the U.S

dollar and some funds flowing back into it, which has tempered gold's price surgeLooking ahead, market participants are focusing on the resistance level around 2670. A breakout here could propel gold to new heights, while a robust support line remains at approximately 2650. A fall below this threshold could signal a change in momentum.

The Australian dollar is under the spotlight as it experienced a volatile decline yesterday, with the daily trading session closing slightly down around 0.6200. The main pressure on the Australian dollar stems from the simultaneous rise in the U.Sdollar index, supported by robust economic data and a hawkish tilt in the Fed’s meeting minutesCoupled with looming expectations of an interest rate cut from the Reserve Bank of Australia in February, these factors continue to weigh heavily on the Aussie’s performanceToday, traders will need to monitor the pressure around the 0.6300 level, while significant support is noted at approximately 0.6100.

Meanwhile, the USD/CAD pair saw a slight uptick as it edged higher during the day, with the exchange rate now hovering around 1.4380. The momentum has been buoyed by a complex interplay of factors, including a resilient U.S