Palladium trades lower as dollar recovers losses, US ADP eyed
Following its drop to a low of $722.18 an ounce at the end of March, palladium rebounded to hit a peak of $801.25 on May 8.
Compared to gold, silver and platinum, palladium has been the best performer over the recent weeks.
Expectations of seeing higher auto sales from both China and United States, with signs of higher demand from both countries since the beginning of the year.
While global auto sales grew a meagre 2 percent in 2014, car sales in China soared an annualized 3.9 percent in the first quarter and in the U.S. it climbed 6.4 percent during the same period.
However, palladium once again tracked losses in commodities on the back of the dollar’s strength.
The dollar index, which tracks the green currency’s movements versus a basket of major currencies, recovered some of its losses on Wednesday after dropping sharply on Tuesday.
The six-currency gauge is currently hovering around 96.24 after hitting a bottom of 95.68.
As of 12:15 GMT, the U.S. will release its ADP employment report that may signal U.S. employers added 198,000 jobs in May from 169,000 in April.
The data will be carefully watched as it provides clues about the health of the labor market before the release of the awaited nonfarm payrolls on Friday.
Palladium fell to a low of $758.65 yet it recuperated some of its losses to trade around $762.60, where it is currently trading above 50% Fibo support.
The Bollinger Bands suggest the price is oversold as it plunged below the lower line, while the Stochastic Oscillator momentum indicator is heading towards oversold areas.