Market Update - 23 Aug 2023

The index extends the upside momentum to new tops. The Dollar remains bid ahead of the Jackson Hole event. Weekly MBA report, flash PMIs, housing data next on tap. The greenback extends its march north and reaches new two-month peaks around 103.70 when tracked by the USD Index (DXY). (FXStreet)

USD/CAD extends gains as an effect of the drop in Crude oil price. US PMI data and Canada Retail Sales could give fresh insights into both economies. US Dollar Index (USD) shows resilience despite the drop in US Treasury yields. (FXStreet)

EUR/JPY drifts lower for the second straight day and drops to a two-week trough on Wednesday. The dismal German PMIs weigh heavily on the shared currency and exert pressure on the cross. Looming recession risk, intervention fears benefit the JPY and also contribute to the offered tone. (FXStreet)

EUR/GBP drifts lower for the second straight day and drops to a one-year low on Wednesday. The disappointing German PMIs reaffirm bets for the ECB rate hike pause and exert pressure. Bets for more rate hikes by BoE support prospects for a further near-term depreciating move. (FXStreet)

USD/JPY currently trades near 145.62, losing 0.19% on the day. The immediate resistance level for USD/JPY appears at 145.85; the initial contention is located at 145.30. The Relative Strength Index (RSI) stands in bearish territory below 50. (FXStreet)

EUR/USD trades higher around 1.0860 due to softer US Dollar Index (DXY). Traders adopt a cautious stance ahead of the releases of PMIs data. US bond yields and downbeat US housing data weaken the Greenback. (FXStreet)

USD/CHF fades bounce off 100-SMA as traders await US S&P Global PMIs for August. Fortnight-old ascending triangle restricts immediate moves of Swiss Franc pair. Steady RSI, failure to defend recovery from key SMA lure pair sellers. 200-SMA acts as additional check for bears; buyers need validation from “Golden Fibonacci Ratio”. (FXStreet)

USD/RUB holds above the 94.50 area in the Asian session. Russian President Vladimir Putin said that inflationary risks were increasing. Putin said Russia has surpassed Germany to become the world’s top five largest economies. Investors will monitor US PMI, the Federal Reserve (Fed) annual economic symposium at Jackson Hole. (FXStreet)

AUD/USD edges higher amid four-day winning streak, reverses pullback from intraday top of late. China-linked optimism, softer Treasury bond yields underpin Aussie pair’s rebound despite downbeat Australia PMI. Cautious optimism adds strength to recovery moves toward May’s low. Upbeat prints of US S&P Global PMIs, one-month-old descending resistance line can challenge AUD/USD rebound. (FXStreet)

NZD/USD pierces 10-DMA hurdle amid nearly oversold RSI, ignores mixed NZ Retail Sales details. Kiwi bulls need to cross 0.5980-85 resistance region to retake control. US S&P Global PMI for August also need to back the recovery moves within short-term falling wedge. (FXStreet)

Tuesday’s decline in prices of natural gas was in tandem with shrinking open interest, which removes strength from prospects for further decline in the very near term at least. So far, the $2.50 region per MMBtu keeps holding the downside for the time being. (FXStreet)

Gold price gains positive traction for the third successive day on Wednesday. Retreating US bond yields undermines the US Dollar and lends some support. China's economic woes further boost demand for the safe-haven XAU/USD. Eyes global PMIs for some impetus ahead of the Jackson Hole Symposium. (FXStreet)

Silver scales higher for the fifth straight day and jumps to a nearly three-week high on Wednesday. A slightly overbought RSI on hourly charts warrants some caution before placing fresh bullish bets. Any meaningful corrective decline might now be seen as a buying opportunity and remain limited. (FXStreet)

Source: FXStreet

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