Market Update - 01 November 2022

AUD/USD is paring back gains as RBA Lowe fails to impress. The dovish RBA rate hike did little to deter AUD bulls amid China-led risk flows. All eyes now remain on the US ISM, Australian housing data and the Fed decision. (FXStreet)

USD/CHF snaps a three-day winning streak to over a one-week high amid modest USD weakness. Expectations for another 75 bps Fed rate hike should limit the USD losses and lend some support. A positive risk tone could undermine the safe-haven CHF and warrants caution for bearish traders. (FXStreet)

Monday’s strong advance in prices of natural gas was accompanied by increasing open interest and volume, allowing the commodity to extend the bounce in the very near term and with the immediate hurdle at the 200-day SMA, today at $6.750 per MMBtu. (FXStreet)

A combination of factors prompts aggressive selling around USD/CAD on Tuesday. Rising oil prices underpin the loonie and exert pressure amid a modest USD downtick. The downside seems limited amid recession fears and ahead of the FOMC meeting. (FXStreet)

EUR/USD regains positive traction on Tuesday amid the emergence of some USD selling. The technical set-up favours bullish traders and supports prospects for additional gains. A sustained break below mid-0.9800s is needed to negate the near-term positive bias. (FXStreet)

Silver price extends bounce off 50-DMA to renew intraday high. Bulls jostle with 100-DMA, descending trend line from early October. Firmer oscillators favor bulls but daily closing beyond $19.55 appears necessary to test previous monthly peak. Two-month-old ascending support line acts as additional downside filter. (FXStreet)

GBP/USD is eying more upside above 1.1517 as the market mood has turned cheerful. The DXY has refreshed the day’s low at 111.28 despite soaring hawkish Fed bets. A collective effort of tight monetary policy and fiscal will weigh on price growth in the UK. (FXStreet)

Gold price bounces off five-week-old support line amid pullback in DXY, yields. Mixed concerns over Fed, sluggish session allow XAU/USD traders to brace for FOMC. Upbeat performance of Chinese equities adds strength to the recovery moves. US data, risk catalysts could entertain traders but bears stay hopeful. (FXStreet)

USD/JPY bounces off intraday low during the first daily fall in three. 10-DMA restricts immediate declines amid sluggish yields. BOJ’s stealth intervention, mixed concerns over Fed triggered earlier pullback. US ISM, S&P Global Manufacturing PMIs will precede FOMC to direct traders, bulls are likely to keep the reins. (FXStreet)

USD/IDR remains firmer around the highest levels since April 2020, marked the previous day. Indonesia Inflation, S&P Global PMI for October ease below market forecasts. US dollar’s struggle to extend previous run-up amid mixed feeling over Fed limits immediate upside. (FXStreet)

USD/INR is heading towards 83.00 despite a steep fall in the DXY. Goldman Sachs sees the terminal rate at 5% beyond the Fed’s projected rate of 4.8%. RBI policymakers will also discuss the inflation report for the first time in the monetary policy framework. (FXStreet)

AUD/NZD retreats from intraday high after RBA’s Interest Rate announcement. RBA announced a 0.25% rate hike while matching market forecasts. Strong NZ Building Permits previously dragged the quote to fresh multi-day low. RBA Governor’s speech, NZ jobs report and RBNZ’s Orr will be important to defend the buyers. (FXStreet)

NZD/USD’s trend on intraday charts indicates that the trend remains up as it attempts to break above vital resistance at the October 6 high of 0.5815. This resistance is important as a decisive break above it could open the way towards 0.6000-0.6050 (including the 50% retracement of the August-October fall). (DailyFX)

WTI and Brent crude oil prices are marginally lower in early Asia-Pacific trading, extending Monday’s drop as Chinese Covid lockdowns and rising interest rates weigh on the commodity’s demand outlook. Crude oil finished 8.86% higher in October despite Monday’s 2.18% decline. That broke a four-month losing streak that pushed prices below the $80 level. (DailyFX)

Source: FXStreet, DailyFX

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