Tuesday Briefing: From DXY, Gold to Latest FX Headlines; March 21, 2023

US Dollar Index Overview

  • DXY trades marginally lower on Tuesday and stabilizes around 103.00 mark.
  • It made intraday high at 103.50 and low at 103.01 mark.
  • A day Chart is up and H1 chart with triple EMA suggests down trend for the time being.
  • Immediate hurdles are seen at 103.48 to 103.01 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 weakens as U.S. released key economic data with positive numbers and hovers around $1,950 mark.
  • The pair made intraday high at $1,985 and Low at $1,945 mark.
  • A day chart and H1 chart with triple EMA suggest up trend for the time being.
  • A sustained close above $1,962 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,947 on H1 chart will test further supports.

Key Headlines for the FX market:

  • Workers erected barricades around a Manhattan courthouse as New York City braced for a possible indictment of Donald Trump over an alleged hush-money payment to porn star Stormy Daniels during his 2016 campaign.
  • Russian President Vladimir Putin and Chinese leader Xi Jinping are due to hold further talks amid Western criticism that Xi’s visit was giving a boost to Moscow as it struggles to make ground in its year-long war on Ukraine.
  • French President Emmanuel Macron will break his silence tomorrow to outline plans after his administration survived a no-confidence motion in parliament over a deeply unpopular pension reform.
  • U.N. Secretary General Antonio Guterres warned that the “climate time bomb is ticking” and urged rich nations to slash emissions sooner after the sixth report of the Intergovernmental Panel on Climate Change (IPCC) said there was little time to lose in tackling climate change.
  • Taiwan President Tsai Ing-wen will make sensitive stopovers in the United States on her way to and from Central America that China’s foreign ministry condemned, but Taipei would not confirm a meeting with House Speaker Kevin McCarthy.
  • Attention is now on this week’s meeting of the U.S. Federal Reserve, with traders wondering whether the central bank’s relentless rate hikes – blamed by some for sparking the crisis – might be at an end.

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