Tuesday Briefing: From DXY, Gold to Latest FX Headlines; Jan 24, 2023

US Dollar Index Overview

  • DXY exhibits range bound movement and remains well supported
  • It made intraday high at 102.03 and low at 101.59 mark.
  • A day Chart and H1 chart with triple EMA suggest bearish trend for the time being.
  • Immediate hurdles are seen at 102.54 to 101.64 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 enjoys roller coaster movement ahead of U.S.’s Key fundamentals and remains well supported below $1,942 mark.
  • The pair made intraday high at $1,942 and Low at $1,927 mark.
  • A day chart and H1 chart with triple EMA suggest bullish trend for the time being.
  • A sustained close above $1,942 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,927 on H1 chart will test further supports.

Key Headlines for the FX market:

  • Private sector firms in the US registered a further decline in output at the start of 2023, according to latest ‘flash’ PMI™ data from S&P Global. The fall in business activity softened to the slowest in three months, however, as manufacturers and service providers signalled moderations in their respective downturns.
  • U.S. The headline Flash US PMI Composite Output Index registered 46.6 in January, up from 45.0 at the end of 2022.
  • Several senior Ukrainian officials resigned in the biggest leadership shakeup of the war with Russia so far, in what an aide to President Volodymyr Zelenskiy called an answer to public calls for “justice”. Some, though not all, of the resignations were linked with corruption allegations.
  • Finland’s foreign minister said a time-out of a few weeks was needed in Finland and Sweden’s talks with Turkey on their application to join the NATO military alliance.
  • Turkey’s president said that Sweden should not expect his country’s support after a protest near the Turkish embassy in Stockholm at the weekend, which included the burning of a copy of the Koran.
  • Jacinda Ardern bid an emotional farewell on her last day as prime minister, speaking of the kindness and empathy New Zealanders have shown her. “Thank you from the bottom of my heart for the greatest privilege of my life”
  • Australia will limit the sale of alcohol and consider wider bans to control spiraling alcohol-fueled violence in a central region, in the run-up to a referendum on Indigenous recognition that is shining a light on deep social divisions.
  • Elon Musk told jurors he was sure he had locked up financial support from Saudi investors in 2018 to take his electric car maker Tesla private, and could even have used his stake in rocket company SpaceX to fund a buyout.
  • Euro zone business activity made a surprise return to modest growth in January, adding to signs the downturn in the bloc may not be as deep as feared and that the currency union may escape recession, a survey showed.
  • Oil major BP plans to build a vast carbon capture project beneath the North Sea that would be crucial to Britain hitting its emissions targets. Power giant Orsted aims to build a huge offshore windfarm to help the country meet renewable goals.
  • The focus of the luxury industry is shifting back to China, with hopes that its high-end spenders will once again splurge on designer goods during Lunar New Year festivities as Beijing relaxes COVID curbs after three long years.

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