Wednesday Briefing: From DXY, Gold to Latest FX Headlines; Nov 23, 2022

US Dollar Index Overview

  • DXY weakens sharply in U.S. session as U.S. released key economic data with mixed numbers.
  • It made intraday high at 107.22 and low at 106.22 mark.
  • A day Chart and H1 chart with triple EMA suggest down trend for the time being.
  • Immediate hurdles are seen at 107.93 to 107.07 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 remains highly volatile after key U.S. fundamentals and currently trading around $1,742 mark.
  • The pair made intraday high at $1,747 and Low at $1,727 mark.
  • A day chart is up and H1 chart with triple EMA suggests down trend for the time being.
  • A sustained close above $1,748 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,736 on H1 chart will test further supports.

Key Headlines for the FX market:

  • Chinese authorities imposed more restrictions to rein in a rapid rise in COVID infections, adding to investors’ worries about the economy just as fresh unrest at the world’s largest iPhone factory highlighted the social and financial toll of these curbs.
  • Brazilian President Jair Bolsonaro has challenged the election he lost last month to leftist rival Luiz Inacio Lula da Silva, arguing votes from some machines should be “invalidated” in a complaint that election authorities met with initial skepticism.
  • The downturn in euro zone business activity eased slightly in November, offering a glimmer of hope the expected recession may be shallower than feared, but consumers still cut spending amid a cost of living crisis. Meanwhile, British economic activity fell at close to its fastest pace in nearly two years.
  • New Zealand’s central bank hiked interest rates by a record amount and warned the economy might have to spend an entire year in recession to bring sky-high inflation under control.
  • NATO allies on Wednesday conducted a military exercise to test air and missile defences in Romania, about a week after a stray missile crashed in Poland and cast a spotlight on gaps in the alliance’s shield for the skies.
  • Unionised truckers in South Korea kicked off their second major strike in less than six months on Thursday, threatening to disrupt manufacturing and fuel supplies in the world’s 10th-largest economy.
  • Brazil faces a new wave of COVID cases just as the soccer-crazed nation is gathering en masse to follow the World Cup, with new coronavirus sub-variants and delayed vaccine boosters raising alarms among public health specialists.
  • The International Monetary Fund said on Wednesday it has reached a staff-level agreement with Ukraine for a policy program monitoring arrangement that aims to pave the way towards a new, full-fledged IMF loan program for Kyiv.
  • U.S. business activity contracted for a fifth straight month in November, with a measure of new orders dropping to its lowest level in 2-1/2 years as higher interest rates slowed demand.
  • U.S. new vehicle retail sales are expected to be relatively flat in November as high vehicle prices, coupled with interest rate increase, are moderating demand, a report from industry consultants J.D. Power-LMC Automotive showed on Wednesday.

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