Market Update - 28 April 2023 

NZD/USD picks up bids to reverse late Thursday’s pullback from 200-DMA. Bearish MACD signals, steady RSI keeps Kiwi pair sellers hopeful. Three-week-old descending trend line adds to the upside filters. Upward-sloping support line from November 2022 becomes crucial to watch NZD/USD bears.

The index extends the uptrend to the 101.80 region. US yields gives away some gains across the curve. Inflation tracked by the PCE, Consumer Sentiment next on tap. The Greenback, in terms of the USD Index (DXY), extends the optimism to the 101.80 zone at the end of the week.

AUD/NZD is aiming to recapture the 1.0800 resistance ahead of the RBA policy. Due to consistently declining Australian inflation, the RBA is expected to keep interest rates steady at 3.6%. The RBNZ would consider a pause in the policy-tightening process amid softening of NZ inflation.

EUR/USD is marching north after a solid recovery from 1.1000 ahead of the Eurozone GDP and German HICP. The USD Index has slipped as investors are worried that an increase in the debt-ceiling will impact long-term rating of the US economy. EUR/USD is auctioning in an Ascending Triangle pattern, which indicates a volatility contraction.

AUD/USD picks up bids to refresh intraday high, extends the previous day’s rebound. Downbeat oscillators fail to back Thursday’s U-turn from 38.2% Fibonacci retracement. Bottom line of bullish channel prods Aussie pair’s immediate upside.

USD/CAD remains pressured after reversing from one-month high. Bullish MACD signals, 50-DMA challenge Loonie pair’s further downside. Convergence of early April top, two-week-old ascending trend line adds to the downside filters. Buyers need validation from seven-week-long resistance line, 61.8% Fibonacci retracement.

AUD/JPY is aiming to reclaim 89.00 as a continuation of expansionary monetary policy by the BoJ is widely anticipated. The requirement of keeping Japan’s inflation rate steadily above 2% an ultra-dovish policy is highly required. Consistently declining Australian inflation will allow the RBA to keep interest rates steady.

EUR/JPY has jumped above 148.00 as BoJ has maintained the status quo. A continuation of ultra-dovish policy was widely anticipated to keep inflation confidently above 2%. Investors are keenly awaiting the release of preliminary Eurozone GDP and German HICP data for further guidance.

GBP/JPY jumps nearly 150 pips on BoJ inaction, pierces the key technical hurdle. BoJ matches market forecasts with no change to monetary policy, YCC measures. UK Business Sentiment hits 11 months high and favors cross-currency pair buyers. Newly appointed Governor Ueda’s speech will be the key for immediate directions.

USD/JPY as BoJ matches market forecasts of keeping monetary policy, rates unchanged. BoJ keeps YCC band unchanged but tweaks forward guidance. Yen traders keenly await Governor Ueda’s first press conference, economic outlook amid hawkish bias. US Core PCE Price Index also appears important ahead of next week’s FOMC.

GBP/USD is hovering near 1.2500, gathering strength for a decisive breakout. The USD Index has regained strength as investors are shifting their focus toward the Fed policy. GBP/USD is consolidating in a range of 1.2436-1.2500 amid the absence of a critical trigger.

USD/MXN picks up bids to refresh intraday high, consolidates the biggest daily loss in a month. Bearish MACD signals challenge Mexican Peso sellers, 200-EMA acts as additional upside hurdle for the pair. Multiple levels towards the south challenge USD/MXN bears inside three-week-old triangle.

USD/CNH remains pressured for third consecutive day despite bouncing off intraday low at the latest. RSI retreat backs offshore Chinese Yuan pair’s U-turn from 200-DMA, 38.2% Fibonacci retracement. Five-week-old horizontal support restricts immediate downside ahead of the key support line stretched from early February.

USD/INR grinds higher after bouncing off two-week low the previous day. Cautious mood ahead of the key data keeps Indian Rupee directionless. US statistics defend Fed hawks ahead of the key inflation clues and FOMC. Fresh tensions surrounding China, First Republican Bank prod USD/INR sellers above 200-DMA.

Natural Gas Price fades the previous day’s bounce off one-week low, eases of late. Weekly prints of EIA Natural Gas Storage Change came in firmer. Expectations of downbeat Russia Gas exports, higher US consumption keep XNG/USD bulls hopeful.

WTI bulls are attempting to correct and have formed a solid support ground. Bears could be willing to take the bulls on at a premium from below trendline resistance. 

Gold price remains pressured after a volatile day that ended with minor XAU/USD losses. XAU/USD drops as United States GDP details signal upbeat inflation component favoring US Dollar bulls. First Republic Bank inflicted market fears also exert downside pressure on the Gold price but tech earning prod XAU/USD downside. Federal Reserve’s favorite inflation gauge eyed after upbeat Core PCE Price figures.

Silver struggles to capitalize on the overnight goodish rebound from the $24.50 support zone. The technical setup seems tilted in favour of bulls and supports prospects for additional gains. A convincing break below the $24.40-30 resistance-turned-support will negate the positive bias.

Source: FXStreet, DailyFX

Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.