What happened in the US session?
The S&P closed slightly lower as investors weighed on the latest corporate earnings, while the DXY traded lower overnight.
What does it mean for the Asia Session?
Anticipate lower volatility during the Asia session with no major news on the horizon.
The Dollar Index (DXY)
Key news events today
USD Advance GDP q/q
What can we expect from DXY today?
The DXY traded with significantly choppy price action as the price fluctuated between the 101.30 and 101.80 price range overnight. However, as the market took on a more hawkish view of the Euro, this led to the DXY losing ground against the other major currencies. Currently trading along the 101.40 price level, the DXY could consolidate along the current price with a brief retracement to the upside. Look for the DXY to restest the 101.60 price level before possibly trading lower again.
Central Bank Notes:
- Federal Reserve hiked rates by 50bps taking interest rates to 4.50%
- Next meeting is on 2 February 2023
- Further rate increases are expected to slow
Next 24 Hours Bias
Weak Bearish
Gold (XAU)
Key news events today
No major news events.
What can we expect from Gold today?
Gold traded significantly higher overnight as the price bounced off the support level of 1921, climbing steadily to a high of 1948. With the price currently at the 1945 price level, a brief retracement to the downside can be expected. However, look for further upside upon completion of the retracement. If Gold trades above the 1948 price level, the price could continue trading higher toward the round number level of 1950 and the next key resistance level of 2000.
Next 24 Hours Bias
Weak Bullish
The Australian Dollar (AUD)
Key news events today
No major news events.
What can we expect from AUD today?
The AUDUSD continues to trade higher amid choppy price action as the price attempts to break strongly above the 0.71 round number resistance level. Further upside is anticipated for the AUDUSD as the price climbs beyond the 0.7120 price level, with the next key resistance level at 0.73. However, watch out for further choppy price action with the Australian Bank Holiday today.
Central Bank Notes:
- Cash rate stands at 3.10%
- Future rate rises will be determined by data, the outlook for inflation, and the labour market.
- Next meeting on 7 February 2023
Next 24 Hours Bias
Medium Bullish
The Kiwi Dollar (NZD)
Key news events today
No major news events.
What can we expect from NZD today?
The NZDUSD traded lower down to the 0.6450 price level before retracing higher again overnight. The NZDUSD could continue to consolidate along the current price level of 0.6480 for the interim, with a breakout potential to the upside, driven by the correlation with the AUDUSD. If the price breaks above the 0.65 price level, the NZDUSD could continue with the current uptrend toward the key resistance level of 0.6525.
Central Bank Notes:
- Cash rate stands at 4.25%
- Central bank is likely to continue with the current path of rate adjustment
- Next meeting is on 21 February 2023
Next 24 Hours Bias
Weak Bullish
The Japanese Yen (JPY)
Key news events today
No major news events.
What can we expect from JPY today?
The USDJPY traded lower overnight as the price broke below the 130-round number support to reach the 129 price level. At the current price level, a brief retracement to the upside is expected, with the USDJPY likely to retest the 130 price level again. If the DXY continues to weaken, the USDJPY could trade lower toward the next key support level of 128.
Central Bank Notes:
- Cash rate stands at -0.1%
- Expanded range for 10 year JGB yield fluctuations to 0.5%
- Next meeting is on 8 March 2023
Next 24 Hours Bias
Weak Bullish
