Market Update - 24 May 2023 

NZD/JPY slumps to the lowest level in a week, extends previous pullback from yearly high. RBNZ announces 0.25% OCR hike, keeps peak rate forecasts unchanged. Retreat in yields, upbeat concerns about Japan manufacturers also weigh on prices. Risk catalysts are the key, RBNZ’s Orr eyed for immediate directions. (FXStreet) 

AUD/NZD has shown a stellar run above 1.0650 after the RBNZ hiked its OCR by 25 bps to 5.5%. The RBNZ was expected to hike its OCR further as NZ inflation has not shown evidence of decent softening. Australia’s Unemployment Rate has soared sharply to 3.7% as firms are anticipating a bleak economic outlook due to higher interest rates. (FXStreet) 

EUR/USD picks up bids to consolidate recent losses, forms bullish chart pattern. Convergence of 50-HMA, 100-HMA and fortnight-long resistance line appears a tough nut to crack for Euro buyers. Sellers can aim for late March swing lows on 1.0760 breakdown. ECB’s Lagarde, Fed Minutes eyed for clear directions. (FXStreet) 

NZD/USD remains on the back foot despite recent corrective bounce following comments from RBNZ Governor Orr. RBNZ’s Orr struggles to restore market’s confidence despite keeping peak rate unchanged, matching 0.25% rate hike expectations. Clear downside break of 200-SMA, one-month-old ascending trend line keeps Kiwi pair sellers hopeful. (FXStreet) 

AUD/USD has managed to climb back above 0.6600 amid subdued performance by the USD index. Speaker McCarthy made clear that we are nowhere near cracking bipartisan with the White House as their partisan terms are ‘unacceptable’. The Australian economy has started slowing down as labor market conditions are facing the heat of higher interest rates. (FXStreet) 

The index fades part of the recent 2-day advance on Wednesday. US debt talks entered an impasse on Tuesday. Weekly Mortgage Applications, FOMC Minutes next on tap. The upside momentum in the greenback appears to struggle to gather fresh impulse beyond 103.50/60 when gauged by the USD Index (DXY). (FXStreet) 

GBP/USD picks up bids to refresh intraday high as UK inflation for April offers positive surprise. UK CPI marks 8.7% YoY numbers for April versus 10.1% prior, 8.2% expected. Pound Sterling benefits from US Dollar’s retreat amid an impasse in debt ceiling talks. BoE’s Bailey needs to defend hawkish bias to favor Cable buyers. (FXStreet) 

USD/JPY portrays bearish chart formation at the highest levels in six months. Downbeat MACD signals also lure Yen pair bears, 100-HMA, 200-HMA act as extra checks for sellers. Bulls need validation from 139.40 to retake control. (FXStreet) 

USD/CAD remains illiquid for the fourth consecutive day, retreating from intraday high of late. Oil price prods two-day uptrend at the highest levels in three weeks, struggles recently amid cautious markets. US Dollar tracks yields to pare recent gains amid deadlock in debt ceiling talks. FOMC Meeting Minutes, US default and weekly Oil inventories updates will be the key for clear directions. (FXStreet) 

USD/INR takes offers to refresh intraday low, reverses from five-week high. Failure to cross five-month-old resistance line joins overbought RSI to lure Indian Rupee buyers. Descending trend line from October 2022, bullish MACD signals prod bears. (FXStreet) 

USD/ZAR is looking to extend its downside built after printing an all-time high of 19.52. The US Dollar Index has shifted below the crucial support of 103.50 ahead of the FOMC minutes. The South African Rand remained in a weak spot due to deepening tensions between South Africa and the US. (FXStreet) 

Gold Price remains sidelined around key support confluence as markets await for Fed Minutes, US debt ceiling extension. Anxiety ahead of the key data/events prods XAU/USD traders amid mixed clues. Hawkish Fed bets, hopes of no US default underpin bearish bias about the Gold price. (FXStreet) 

Source: FXStreet

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