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29.03.2023 Market Report


EUR/USD is easing below 1.0850 in the early European morning. Traders turn cautious, despite easing banking fears, as the focus shifts toward the euro area inflation data. The pair’s pullback could be also attributed to a broad US Dollar rebound. 


GBP/USD is heading back toward 1.2300, fading the Asian bounce in early Europe. Broad-based US Dollar rebound, despite a better market mood and sluggish US Treasury bond yields, is weighing on the pair. US housing data awaited. 


The USD/JPY pair is hovering near its weekly high at 131.75 in the early European session. The asset is expected to extend its upside journey towards 132.00 amid renewed fears of the continuation of ultra-loose monetary policy by the Bank of Japan (BoJ).


The AUD/USD pair is displaying topsy-turvy moves below the round-level resistance of 0.6700 in the Asian session. The Aussie asset has turned rangebound after a vertical downside move post-softening of the Australian Consumer Price Index (CPI). Monthly Australian inflation (Fed) softened further to 6.9% from the prior release of 7.4% as households’ spending has trimmed dramatically. Households are struggling in bearing the burden of inflated goods and services with their nominal growth in earnings. This has bolstered the intention of pausing the policy-tightening spell by the Reserve Bank of Australia (RBA) from its April meeting.


The NZD/USD pair is struggling in shifting its auction above 0.6260 in the Asian session. The Kiwi asset is facing hurdles as the US Dollar Index (DXY) has shown a recovery move near 102.40. The USD Index has found an intermediate cushion around 102.40, however, the downside bias has not faded yet as investors are split about the interest rate decision to be taken by the Federal Reserve (Fed) in May.


The USD/CAD pair has sensed stiff barriers near 1.3600 in the Asian session. The downside bias for the Loonie asset seems solid as the US Dollar Index (DXY) looks prone to further losses below 102.40. The USD Index has found intermediate support near 102.40 but is likely to surrender amid improved risk sentiment.


USD/CHF keeps buyers in the driver’s seat during the early Wednesday’s sluggish markets. That said, the Swiss currency pair rose the most in nearly a fortnight the previous day before portraying the latest inaction above 0.9200, up 0.10% near 0.9208 by the press time.


Oil prices rose in early Asian trade on Wednesday, extending gains into a third straight session as disruptions in Kurdish crude shipments and a potentially large draw in U.S. inventories pointed to tighter supply in the near-term.


Gold price is declining towards $1960.00 as investors are getting anxious ahead of US PCE inflation data. The reputation of Gold as a safe-haven amid US banking jitters has ebbed. On a broader note, Gold price is auctioning in a Symmetrical Triangle chart pattern.