XAUUSD NFP ANALYSIS AND UPDATE

1. The upcoming US job market report is expected to show strong growth, but concerns arise from rising wages impacting labour costs. Despite Powell's optimism about job market balance, recent wage data paints a different picture, with labour costs and unit labour costs surging in Q1, signalling inflationary pressures.
2. Despite higher wages being good for workers, their rapid growth doesn’t meet the Fed’s inflation goals. Powell sees improved supply-demand balance with fewer job openings, partly due to immigration. Yet, wages consistently above 4% signal ongoing inflation risks, diverging from the Fed's targets."
3. Economists anticipate a 4% year-on-year increase in April payrolls, slightly lower than March. California’s new $20 minimum wage adds uncertainty, with local wage hikes compounding. Strong job growth and easing wage pressures will affect the Fed’s policy, potentially impacting future rate decisions.
Technical Status: XAUUSD:

D1 SMA100-P(2163.59)Buy
H4 SMA100-P(2343.19) Sell
H1 SMA100-P(2320.95)Sell