Thursday Briefing: From DXY, Gold to Latest FX Headlines; March 09, 2023

US Dollar Index Overview

  • DXY falls gradually on Thursday as markets await U.S. NFP job results due tomorrow.
  • It made intraday high at 105.71 and low at 105.25 mark.
  • A day Chart and H1 chart with triple EMA suggest up trend for the time being.
  • Immediate hurdles are seen at 105.85 to 105.14 mark.
  • A sustained close of either side on H1 chart requires for the further directions of the U.S. dollar.

Technical Analysis: XAU/USD (Gold)

  • Gold spikes up on Thursday as U.S. releases Unemployment claims weekly data with negative numbers.
  • The pair made intraday high at $1,827 and Low at $1,812 mark.
  • A day chart and H1 chart with triple EMA suggest down trend for the time being.
  • A sustained close above $1,827 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,818 on H1 chart will test further supports.

Key Headlines for the FX market:

  • Russia launched its first huge wave of missile strikes across Ukraine since mid-February, killing at least six civilians and forcing a nuclear power plant off the grid. President Volodymyr Zelenskiy said infrastructure and residential buildings in 10 regions had been hit.
  • Georgia’s ruling party dropped a bill on “foreign agents” after protests against what opponents said was a Russian-inspired authoritarian shift that imperiled hopes of joining the European Union.
  • Israelis protesting judicial reforms sought by the hard-right government converged on the country’s main airport in a bid to disrupt a trip abroad by Prime Minister Benjamin Netanyahu as well as a visit by the U.S. defense secretary.
  • South Korean President Yoon Suk Yeol and his wife will visit Japan next week at Tokyo’s invitation, the first such visit in 12 years after Seoul announced a plan to end a protracted dispute over wartime forced labor.
  • Australia is expected to buy up to five U.S. Virginia class nuclear powered submarines in the 2030’s as part of a landmark defense agreement between Washington, Canberra and London, four U.S. officials said, in a deal that would present a new challenge to China.
  • The Netherlands’ government said it planned new restrictions on exports of semiconductor technology to protect national security, joining a U.S. effort to curb chip exports to China.
  • Flood watch notices were posted across northern and central California for today ahead of an atmospheric river storm expected to douse much of the state with heavy rain, including mountain areas still buried from a near-record snowfall.
  • Biden will travel to the swing-state of Pennsylvania to unveil a federal budget plan laden with spending proposals and higher taxes on the wealthy that will form a blueprint for his expected 2024 re-election bid
  • A federal judge in Florida agreed with the state’s Republican attorney general that the policy of Biden’s administration to release many people who illegally cross the U.S.-Mexican border rather than detaining them violates U.S. immigration law.

Source: Reuters

Keep an eye open for the latest news and fundamentals affecting the FX markets.

Take a look and do trade wisely!
Good Luck