Palladium Price News: XPD/USD consolidates losses around 15-month low on USD pullback
- Palladium struggles to overcome multi-day low, mildly bid of late.
- Cautious optimism underpins corrective pullback, PBOC, Fed eyed.
Palladium (XPD/USD) bears lick their wounds near $1,890, up 0.42% intraday as European traders brace for Tuesday’s bell. In doing so, the commodity prices overcome the lowest levels marked since June 2020, flashed the previous day, as market sentiment improves.
Having offered a pessimistic start to the week, Evergrande Chairman Hui Ka Yan tried to defend the bulls while saying, per Reuters, “Confident the company will 'walk out of darkest moment'.” The same highlights the Chinese government’s action to save the real-estate player, which in turn highlights Wednesday’s People’s Bank of China (PBOC) monetary policy meeting.
Also positive for the markets could be increasing hopes of the US stimulus, as conveyed by US House Speaker Nancy Pelosi, as well as an extension of the American debt limit urged by US Treasury Secretary Janet Yellen. Furthermore, an absence of major negative catalysts and holidays in China battles the bears, which in turn drags the US Dollar Index (DXY) from the monthly top.
While portraying the risk-on mood, S&P 500 Futures rise 0.30% intraday gains while the US 10-year Treasury yields consolidate the latest losses around 1.31% by the press time.
In addition to the aforementioned catalysts, short-covering moves near the multi-month lows add to the Palladium’s corrective pullback.
However, the traders remain cautious ahead of the week’s important events, scheduled for publishing on Wednesday. Among them, monetary policy meetings by the People’s Bank of China (PBOC) and the US Federal Reserve (Fed) take the front seat. Also important will be the return of Chinese traders after a long weekend.
Technical analysis
XPD/USD corrective portrays a bounce off monthly support line, around $1,840, but recovery moves need to cross a two-week-old resistance line near $1,990 to convince even short-term buyers.