Market Update - 22 November 2022

Among the strongest losers of yesterday's USD rally was the Japanese Yen. In order to depress the USD/JPY pair, we need a sustainably weaker Dollar unless the Bank of Japan abandons its dovish stance, economists at Commerzbank report. (FXStreet)

USD/CAD meets with a fresh supply on Tuesday amid the emergence of some USD selling. China’s COVID-19 woes, hawkish Fed expectations should limit the downside for the buck. Subdued Crude Oil prices might cap gains for the Loonie and lend some support to the pair. (FXStreet)

AUD/USD attracts some buyers on Tuesday amid subdued USD price action. China’s COVID-19 woes, hawkish Fed expectations could limit the USD losses. RBA Governor Lowe's comments fail to impress bulls or provide any impetus. (FXStreet)

GBP/USD edges higher on Tuesday amid subdued USD demand, though lacks bullish conviction. China’s COVID-19 woes, geopolitical risks should limit any meaningful downside for the Greenback. A bleak outlook for the UK economy undermines the Sterling and contributes to capping the pair. (FXStreet)

NZD/USD regains some positive traction on Tuesday amid subdued USD price action. China’s COVID-19 woes, hawkish Fed signals should act as a tailwind for the greenback. Traders also seem reluctant ahead of the RBNZ and the FOMC minutes on Wednesday. (FXStreet)

EUR/USD retreats from intraday high, pares the first daily gains in four. Markets fade early Asian session optimism amid mixed concerns over ECB, Fed. Covid woes exert additional downside pressure on EUR/USD price. Preliminary readings of Eurozone Consumer Confidence for November could direct Immediate moves. (FXStreet)

GBP/JPY struggles to gain any meaningful traction and consolidates near a two-week high. Bets for additional rate hikes by the BoE underpin the British Pound and acts as a tailwind. A modest pickup in demand for the JPY keeps a lid on any meaningful upside for the cross. The BoJ’s dovish stance might continue to weigh on the JPY and favours the GBP/JPY bulls. (FXStreet)

USD/INR is facing barricades in an attempt of overstepping the immediate hurdle of 82.00. A significant jump in demand for US Durable Goods could lift interest rate guidance. A decline in India’s retail inflation might force the RBI to a lower rate hike. (FXStreet)

USD/CNH, up over 2% over the past week, is now running into stiff converged resistance: Thursday’s high of 7.18, the 200-period moving average, and the 89-period moving average on the 240-minute charts (the minor rebound earlier this month ran out of steam at the shorter moving average). With negative momentum divergence (rising price associated with declining momentum), USD/CNH could find it tough to crack the resistance for now. This follows a rebound from near support at the October low of 7.01 –a path highlighted in the previous update. Also, USD/CNH met the price objective of a minor topping pattern triggered earlier this month. (DailyFX)

Oil prices are hovering around $80.00, with hopes for further recovery on OPEC+ intervention. The oil cartel will continue to cut oil production by two million bpd till the end of 2023. Sky-rocketing Covid-19 cases in China could force the administration to return to lockdown curbs. (FXStreet)Silver price fades bounce off 100-SMA, retreats from three-day-old resistance line. Bearish RSI divergence keeps sellers hopeful to aim for 200-SMA. Monthly support line adds to the downside filters, buyers need validation from $21.30. (FXStreet)

Gold price has extended its recovery after resurfacing from $1,730.00 as the risk-off profile has eased. Federal Reserve policymakers have turned cautiously hawkish on interest rates as risks of upside inflation have trimmed. The US Dollar is awaiting the release of the United States Durable Goods Orders for further guidance. Gold price is marching towards $1,750.00 as prior resistance at around $1,735 has turned into a potential cushion. (FXStreet)

Bitcoin (BTC) threatens psychological support as sentiment continues to dwindle. Ethereum has fallen to another level of Fibonacci support after falling below $1,200. FTX swindle intensifies as creditors mourn losses. Grayscale’s Bitcoin Trust enters spotlight after refusing to share proof of reserves. (DailyFX)

Source: FXStreet, DailyFX

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