Market Update - 01 March 2023

USD/CAD meets with a fresh supply on Wednesday and is pressured by a combination of factors. Rising Crude Oil prices underpin the Loonie and weigh on the pair amid a sharp USD pullback. Looming recession risks, hawkish Fed expectations could limit the USD losses and lend support. (FXStreet)

GBP/USD regains positive traction and draws support from a combination of factors. The upbeat Chinese PMIs boost investors’ confidence and weigh heavily on the USD. The Brexit optimism, BoE rate hike bets benefit the GBP and lend additional support. (FXStreet)

The index keeps the erratic performance unchanged this week. US yields extend the rally across the curve on Wednesday. The ISM Manufacturing will take centre stage later in the NA session. The USD Index (DXY), which gauges the greenback vs. a basket of its main rival currencies, trades on the defensive well south of the 105.00 yardstick on Wednesday. (FXStreet)

USD/JPY struggles to capitalize on a modest uptick on Wednesday and remains below the YTD top. The BoJ’s dovish outlook, weaker Japanese PMI undermine the JPY and continue to lend support. Hawkish Fed expectations, elevated US bond yields act as a tailwind for the USD and favour bulls. (FXStreet)

EUR/USD begins March month on a positive footing after the biggest monthly fall since September 2022. Cautious optimism in the market allows US Dollar to wobble near multi-day higher. Strong inflation data from Spain, France contrasts with downbeat US statistics to also underpin recovery moves. Germany’s HICP, US PMIs will be crucial for intraday directions. (FXStreet)

USD/CHF takes offers to renew intraday high even as risk-aversion prevails. US Dollar struggles to track upbeat yields amid strong China data, softer statistics at home. Downbeat Swiss GDP, hawkish Fed bets favored buyers the previous day. (FXStreet)

NZD/USD gains strong positive traction and builds on the overnight bounce from the YTD low. The upbeat Chinese PMIs, a positive risk tone provide a goodish lift to the risk-sensitive Kiwi. Recession fears, hawkish Fed expectations act as a tailwind for the USD and could cap gains. (FXStreet)

AUD/JPY recovers from two-week low after strong China activity data for February. Previous support line from January 19 joins bearish MACD signals, steady RSI (14) to challenge bulls. Fresh selling needs a clear break of 91.30 to aim for 50-DMA. (FXStreet)

AUD/USD is struggling to extend recovery above 0.6760, upside looks favored amid the risk-on impulse. Federal Reserve might turn more hawkish if US ISM Manufacturing PMI delivers a surprise jump. A sense of relief has been observed by the Reserve Bank of Australia as inflation has softened significantly. AUD/USD looks failing to turn bullish despite a responsive buying move amid an Inverted Flag formation. (FXStreet)

USD/INR has turned volatile as investors are discounting India’s weak GDP numbers. India’s Q3 GDP has slipped lower to 4.4% from 6.3% and 13.5% figures recorded in Q2 and Q1 respectively. Upbeat Caixin Manufacturing PMI has improved investors’ risk appetite. (FXStreet)

USD/IDR remains mildly bid for the second consecutive day despite upbeat Indonesia Inflation. Indonesia Inflation and Core Inflation both grew more than expected in February. Upbeat yields challenge US Dollar’s retreat after the biggest monthly gains since September 2022. US PMIs, risk catalysts eyed for immediate directions, Fed talks will be the key. (FXStreet)

WTI crude oil rises for the second consecutive day, renews intraday high of late. Strong China PMI data bolster upbeat expectations from the world’s largest commodity user. Higher OPEC+ supplies, talks of more Russian Oil floating un-bid challenge WTI bulls. Fears of higher rates, inflation also keep a tab on energy benchmark ahead of US PMIs, official Oil inventories. (FXStreet)

The pronounced rebound in prices of the natural gas seems to have met some tough resistance near the $2.80 mark per MMBtu so far. Tuesday’s small gains were accompanied by shrinking open interest and volume, which hints at some consolidation in the short term ahead of a probable resumption of the downward bias. (FXStreet)

Gold price breaks out of descending parallel channel as market mood improves. US Dollar was sold off on a mix of soft US data and improving Chinese PMI numbrs. ISM Manufacturing and Services PMI releases still awaited for fresh impulse on XAU/USD. (FXStreet)

Silver price extends the previous day’s recovery from the lowest levels since early November 2022. Sustained break of 100-HMA, bullish MACD signals and ascending trend channel keep buyers hopeful. Overbought RSI conditions challenge XAG/USD run-up past $21.20 hurdle, 200-HMA act as additional upside filter. (FXStreet)

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Source: FXStreet, DailyFX

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