Market Update - 04 November 2022

US Dollar Index retreats from a six-week-old resistance line to tease bears. 21-DMA, weekly support line restricts short-term downside amid looming bull cross on MACD. Bulls have a bumpy road to travel before reaching the yearly top. US Dollar Index (DXY) trims the biggest weekly gains in six while holding lower grounds near 112.55, down 0.40% intraday, as traders brace for the US jobs report on Friday. (FXStreet)

USD/JPY struggles to gain any meaningful traction and remains confined in a range on Friday. A modest USD downtick acts as a headwind for the pair, though the downside remains limited. Traders now seem to have moved on the sidelines ahead of the closely-watched US NFP report. (FXStreet)

The British pound’s retreat against the US dollar from near-key resistance has taken the sting out of the recent rally. After briefly rising above resistance at the early-October high of 1.1495, GBP/USD succumbed to gains near strong converged resistance at about 1.1700-1.1750 (including the 89-day moving average and the mid-September high of 1.1740. The last time the pair was above the average was in 2021. (DailyFX)

EUR/GBP pares the biggest daily gain in six weeks. Sustained break of descending triangle, firmer oscillators favor buyers. Bears need validation from 0.8660, October’s high adds to the upside filters. (FXStreet)

Risk-perceived assets have regained their mojo as market mood has turned cheerful. Oversold momentum indicators in a higher lows structure offer smart money channelization opportunity. The RSI (14) has rebounded after dropping below 30.00. The EUR/USD pair has delivered a firmer reversal after sensing a decent buying interest of around 0.9743 in the Tokyo session. The asset has extended its rebound move and is aiming to recapture the immediate hurdle of 0.9800 as the risk-on impulse has regained traction. (FXStreet)

A combination of factors prompts heavy selling around USD/CAD on Friday. Rising oil prices underpin the Loonie and exert pressure amid a weaker USD. Recession fears and the Fed’s hawkish outlook should help limit the downside. Traders might also wait for the monthly jobs report from the US and Canada. (FXStreet)

Silver gains strong traction for the second straight day and climbs beyond the mid-$19.00s. The neutral technical setup warrants some caution before positioning for any further gains. A sustained strength beyond the $20.00 mark is needed to confirm a fresh bullish breakout. (FXStreet)

NZD/USD regains positive traction on Friday and draws support from a combination of factors. A modest USD downtick and a positive risk tone offer some support to the risk-sensitive Kiwi. The Fed’s hawkish outlook should help limit the USD losses and cap the pair ahead of the NFP. (FXStreet)

AUD/USD has jumped above 0.6350 as the risk-on impulse has regained its mojo. Aussie bulls are soaring despite weaker Retail Sales and GDP projections for CY2023. Goldman Sachs sees US NFP for October month at 225k vs. the prior release of 263k. (FXStreet)

WTI picks up bids to refresh intraday high, braces for the second weekly gain. DXY pares the biggest weekly gain in seven ahead of US NFP. China-inspired optimism in Asia, mildly bid US stock futures add strength to the Crude Oil’s run-up. Strong US jobs report could probe energy bulls. (FXStreet)

USD/CAD takes offers to refresh intraday low, snapping six-day uptrend. Cautious optimism in the market joins firmer oil prices, US dollar pullback to tease pair sellers. Fed versus BOC play can keep bulls hopeful even if the US jobs report fail to impress DXY buyers. (FXStreet)

USD/CNH remains pressured around intraday low, down for the second consecutive day. PBOC prints the biggest weekly cash withdrawal in nine months. Increase in China’s covid counts, firmer DXY fail to chain bears amid pre-NFP consolidation. (FXStreet)

AUD/NZD has jumped to near 1.0920 despite the Aussie Retail Sales drop to 0.2%. RBA’s November monetary policy statement claims short-term inflation expectations at 8%. Australia’s GDP projections have dropped to 2.0% and 1.4% for H1CY22 and H2CY22 respectively. (FXStreet)

XAU/USD can be quite sensitive to situations when both bond yields and the Greenback move in the same direction, whether it is up or down. That is because the yellow metal bears no inherent yield for an investor who holds the asset. When the rate of return on cash rises, as it has been this year, that tends to bode poorly for gold. (DailyFX)

AUD/USD turned lower last week after prices failed to clear resistance from the early October levels. The downward move accelerated overnight, and prices may break a short-term trendline. That would threaten the October swing low. Alternatively, a potential rebound faces the falling 50-day Simple Moving Average (SMA). (DailyFX)

Source: FXStreet, DailyFX

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