Market Update - 18 April 2023

EUR/USD is showing a sideways move around 1.0926 following the footprints of the USD Index. ECB policymakers are divided over the scale of the interest rate hike to be announced in May. The major currency pair has dropped below the upward-sloping trendline plotted from 1.0714. (FXStreet)

The index reverses two daily pullbacks and revisits 102.00. The risk-on trade seems to prevail early in the European session. Housing data, Fed’s Bowman next on tap later on Tuesday. The greenback trades slightly on the defensive and returns to the 102.00 neighbourhood when tracked by the USD Index (DXY) on turnaround Tuesday. (FXStreet)

AUD/NZD picks up bids to reverse the early losses on RBA Minutes. RBA Minutes appear slightly hawkish while justifying the pause in rate hike trajectory. China Q1 GDP, risk catalysts and New Zealand’s quarterly inflation data are the key for clear directions. (FXStreet)

AUD/JPY has surpassed the critical resistance of 90.30 post the release of RBA minutes. RBA paused the policy-tightening spell to allow time to gather more information. The BoJ has anticipated inflation in a range of 1.6-1.9% for CY2025. (FXStreet)

AUD/USD initially refreshed intraday high before recently easing from the top. RBA Minutes fail to convince market players of policymakers’ hawkish capacity. China data dump portrays solid economic transition of Australia’s biggest customer. Sluggish markets, hawkish Fed bets exert additional downside pressure on AUD/USD price. (FXStreet)

USD/JPY consolidates its recent gains to a multi-week high touched earlier this Tuesday. A modest USD weakness turns out to be a key factor acting as a headwind for the major. Elevated US bond yields favour the USD bulls and help limit the downside for the pair. (FXStreet)

EUR/USD picks up bids to refresh intraday high, snaps two-day downtrend amid sluggish session. US Treasury bond yields, Dollar Index struggle to defend latest recovery ahead of active economic calendar. Hawkish Fed bets, ECB policymakers’ indecision keep Euro bulls hopeful. Eurozone, German ZEW sentiment data, US housing numbers to direct intraday moves. (FXStreet)

GBP/JPY grinds near intraday high during three-day uptrend ahead of UK employment statistics. Seven-week-old ascending resistance line challenges buyers amid nearly overbought RSI (14). Multiple failures to cross immediate trend line resistance join price-negative RSI conditions to tease sellers. 10-DMA restricts immediate downside, 161.00 appears a tough nut to crack for GBP/JPY bears. (FXStreet)

EUR/GBP extends the previous day’s pullback from three-week high. UK Claimant Count Change improved to 28.2K in March, ILO Unemployment Rate rose to 3.8% in three months to February. ECB policymakers’ indecision joins cautious mood ahead of EU/German ZEW data to prod EUR/GBP traders. (FXStreet)

USD/CAD has gauged an intermediate cushion around 1.3380 as focus shifts to Canada’s Inflation. Stubborn US core inflation is still a cause of worry for Fed policymakers. A continuous decline in Canada’s inflation will allow the BoC to keep rates steady. (FXStreet)

NZD/USD initially refreshed intraday high before retreating of late. China Q1 GDP matches market forecasts, Retail Sales and Industrial Production also improve in March. Hawkish Fed bets, cautious mood ahead of New Zealand Q1 CPI prod Kiwi pair buyers. (FXStreet)

USD/JPY prods two-day uptrend as it eases from multi-day high. Fears that Japan’s fiscal policy, recent bond buying challenge BoJ’s ultra-loose monetary policy check Yen pair buyers. Hawkish Fed bets, upbeat US data favor yields, US Dollar despite latest pullback in prices. Second-tier US data, risk catalysts eyed for clear directions. (FXStreet)

GBP/USD is marching towards 1.2400 ahead of UK labor market data. March’s UK Employment data will have a significant impact on the interest rate decision by the BoE. A mind correction in the USD Index to 102.00 has provided some support to the cable. (FXStreet)

USD/CHF has gyrated in a wide range after the release of upbeat China’s GDP data. China’s robust retail demand shows that the economy will come out of the disinflationary process. S&P500 futures are showing topsy-turvy moves ahead of US banks’ earnings report. (FXStreet)

USD/MXN struggles for clear directions as it flirts with short-term key support. Multiple Doji candlesticks, sluggish oscillators suggest Mexican Peso buyers run out of steam. USD/MXN needs validation from 21-day EMA to convince short-term (FXStreet)

USD/INR struggles to extend two-day rebound from the lowest levels in 11 weeks. One-month-old descending resistance line, 200-SMA challenge Indian Rupee sellers. Multiple bottoms around 81.50, bullish MACD signals keep pair buyers hopeful. (FXStreet)

WTI crude oil clings to mild gains while paring the biggest daily loss in a month. China data adds strength to the corrective bounce in Oil price. Bearish MACD signals, 50-SMA challenges buyers but further downside needs validation from previous resistance line from January. (FXStreet)

Natural Gas price remains sidelined at the highest levels in a month after rising for the last two consecutive days. Cautious markets ahead of the key data, lack of major news prod XNG/USD traders. US debt ceiling plan, China Q1 GDP and the US PMI are crucial for short-term Natural Gas Price directions. (FXStreet)

Gold price is probing the $2,000 near a 61.8% Fibonacci retracement. Gold price bears are on the prowl at key resistance. Gold price remains in the key support area in Asia with the bulls probing the bearish commitments at the psychological $2,000/oz level. XAU/USD has moved up from a low of $1,993.41 to score a high of $1,999.41 so far. (FXStreet)

Silver edges higher on Tuesday and stalls a two-day corrective decline from a one-year top. The technical setup still supports prospects for the resumption of a one-month-old uptrend. A convincing break below the $24.00 mark is needed to negate the near-term positive bias. (FXStreet)

Source: FXStreet, DailyFX

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