Market Update - 04 January 2023

EUR/USD partially reverses Tuesday’s drop and approaches 1.0600. Final Services PMIs in the euro area are due next in the docket. Investors’ attention remains on the release of the FOMC Minutes. (FXStreet)

The index sheds some ground after recent multi-day highs. The risk complex manages to regain some poise on Wednesday. Mortgage Applications, ISM Manufacturing, FOMC Minutes next on tap. The greenback, when tracked by the USD Index (DXY), navigates the end of the Asian session slightly in the negative territory near 104.50 on Wednesday. (FXStreet)

USD/JPY is struggling to extend its recovery above 131.00. A spree of lower highs in the asset indicates a continuation of the downside trend. Downward-sloping 20-and 50-EMAs add to the downside filters. (FXStreet)

The risk-off market mood in global markets has strengthened the US Dollar, A bull cross, represented by the 20-and 50-EMAs at 1.3578, indicates more upside ahead. The RSI (14) has jumped into the bullish range of 60.00-80.00, which supports the Greenback. The USD/CAD pair has dropped to near 1.3636 in the Asian session after multiple failed attempts of breaking above the critical resistance of 1.3680. (FXStreet)

GBP/USD has turned sideways around 1.2000 as investors await US ISM PMI data for fresh cues. The Cable has comfortably established below the 200-EMA at 1.2024. Value-buying persist in the Cable as RSI (14) managed to recover firmly after dropping inside the bearish range. (FXStreet)

Risk-off profile ahead of FOMC minutes and US ISM PMI has strengthened the US Dollar. A shift in the auction profile below the 200-EMA has weakened the New Zealand Dollar. The RSI (14) has dropped firmly inside the bearish range, which indicates more weakness ahead. The NZD/USD pair is oscillating below the critical hurdle of 0.6250 in the early Asian session. (FXStreet)

AUD/USD is rallying hard, eyeing 0.6900 amid USD sell-off, upbeat mood. China is considering a partial end to the Australian coal ban. US ISM PMI and Fed Minutes to offer fresh cues to the Aussie.(FXStreet)

USD/CHF is displaying a lackluster performance ahead of FOMC minutes and Swiss CPI. The Swiss franc asset has comfortably shifted above the 50-EMA around 0.9287. A shift into the bullish range by the RSI (14) indicates the upside momentum has been triggered. (FXStreet)

Tuesday’s strong pullback in prices of the West Texas Intermediate came in tandem with increasing open interest and volume, opening the door to the continuation of the current decline in the short-term horizon and with the potential test at the 2022 low at $70.10 (December 9). (FXStreet)

Tuesday’s retracement in prices of the natural gas was accompanied by rising open interest and volume and is supportive of a deeper pullback in the very near term at least. Against that, the commodity could revisit the December 2021 low at $3.53 per MMBtu (December 30) (FXStreet)

Gold price hits fresh seven-month highs above $1,860 in European trading. The US Treasury yields decline, risk-on mood smash the US Dollar. Sell-off in the US Treasury yields cap the downside in the Gold price. (FXStreet)

Source: FXStreet, DailyFX

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