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29.08.2023 Market Report


EUR/USD is trading firmer above 1.0800, moving away from over a two-month low. The pair is supported by a modest USD downtick. Retreating US bond yields and a positive risk tone turn out to be key factors weighing on the Greenback ahead of the US jobs and sentiment data. 


GBP/USD is holding on to the renewed upside, heading toward 1.2850 in the European morning on Tuesday. The extended retreat in the US Dollar alongside the US Treasury bond yields underpin the pair. Focus shifts to the m id-tier US economic data for fresh cues. 


USD/JPY bears flex muscles around 146.40 while printing the first intraday loss, down 0.10% on a day, heading into Tuesday’s European session. In doing so, the Yen pair justifies the recent shift in the bias toward the Bank of Japan (BoJ), as well as the inflation conditions of Japan. However, downbeat concerns about Japan’s employment situations and the cautious mood ahead of the top-tier data/events prod the Yen pair sellers.


AUD/USD retreats from intraday high to 0.6445 as markets brace for key Aussie catalysts heading into Tuesday’s European session. Even so, the risk-barometer pair remains firmer for the second consecutive day while staying inside a fortnight-old symmetrical triangle.

That said, Reserve Bank of Australia (RBA) Deputy Governor Michele Bullock, to be the Governor in three weeks, is up for a speech and will be closely observed as the pair buyers run out of steam due to fears of policy pivot. Following that, the US Conference Board’s (CB) Consumer Confidence Index for August, expected at 116.2 versus prior 117.00, will direct the AUD/USD pair’s moves.


NZD/USD remains firmer around 0.5920, making rounds to intraday high ahead of Tuesday’s European session, as buyers cheer the US Dollar weakness but lack support amid a light calendar and mixed sentiment. Even so, hopes of witnessing more stimulus from the major customer China add strength to the Kiwi pair’s recovery moves.


USD/CAD remains on the back foot around 1.3600 after reversing from a three-month high the last week, not to forget the previous day’s U-turn from an important resistance line. That said, the Loonie pair teases bears around the intraday low of 1.3590 during early Tuesday morning in Europe.


USD/CHF remains on the back foot for the second consecutive day, down 0.12% intraday around 0.8825 amid the early Tuesday morning in Europe. In doing so, the Swiss Franc (CHF) pair stretches last week’s U-turn from a downward-sloping resistance line from March 08.


Oil prices fell slightly in early Asian trade on Tuesday as traders awaited a slew of economic readings from major oil importers this week, while focus also remained on potential supply disruptions from Tropical Storm Idalia.


Gold Price defends the previous weekly recovery, the first in five, as it rises for the second consecutive day amid the broad US Dollar weakness. Also adding strength to the XAU/USD rebound is the cautious optimism in the market, as well as the downbeat Treasury bond yields.

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