Market Update - 23 November 2022

GBP/USD remains confined in a narrow trading band through the first half of the European session. Slightly better-than-expected UK PMIs fail to provide any impetus amid a bleak economic outlook. A mildly softer tone around the USD offers some support ahead of the key FOMC meeting minutes. (FXStreet)

EUR/USD fades part of the earlier advance to the 1.0350 region. Germany flash Manufacturing PMI seen rebounding a tad in November. Markets’ attention will be on the release of the FOMC Minutes later in the day. (FXStreet)

USD/CAD grinds higher while paring the biggest daily fall in a fortnight. 50-SMA, ascending trend line from early September restrict immediate downside. Seven-week-old horizontal support area challenge buyers before 200-SMA. Bearish MACD signals, steady RSI favor short-term sellers. (FXStreet)

NZD/USD remains mildly bid even as Reserve Bank of New Zealand announced 75 bps lift in the benchmark interest rate. Fears of recession, China Covid woes challenge New Zealand Dollar buyers. Multiple statistics from the United States, Minutes of the latest US Federal Reserve (Fed) meetings will offer clear directions. (FXStreet)

AUD/USD gains some follow-through traction on Wednesday amid the prevalent USD selling bias. Bets for less aggressive Fed rate hikes and stability in the equity markets weigh on the greenback. Investors now look to the US macro data for some impetus ahead of the FOMC meeting minutes. (FXStreet)

USD/JPY retreated from the 10-day high it touched above 142.00 earlier in the week and ended up losing 100 pips on Tuesday. The pair seems to have gone into a consolidation phase above 141.00 mid-week. (FXStreet)

Gold price is extending previous gains amid weak US Dollar, US Treasury bond yields. XAU/USD could gather bullish momentum ahead of Federal Reserve minutes and critical economic data from the United States, FXStreet’s Dhwani Mehta reports. (FXStreet)

Silver attracts some dip-buying on Wednesday and spikes to a multi-day high. The move confirms a breakout through a one-week-old descending trend line. A sustained break below the $21.00 mark is needed to negate the positive bias. (FXStreet)

USD/TRY remains sidelined for the second consecutive day. Turkiye’s geopolitical tension with Syria jostles with improved Consumer Confidence to challenge traders. US Dollar inaction ahead of the key data/events also restricts the Turkish Lira pair’s immediate moves. (FXStreet)

USD/CNH extends the rebound from resistance-turned-support line towards 100-SMA. RSI suggests further grinding below the key Simple Moving Averages (SMAs). 200-SMA adds to the upside filters, sellers need validation from 7.1180-60 support confluence. (FXStreet)

USD/INR picks up bids to reverse the previous day’s pullback from two-week high. Chatters surrounding RBI intervention near 81.80-90 join oil prices retreat to challenge bulls. China COVID-19 woes, cautious mood ahead of the key data, FOMC Minutes keep buyers hopeful. Support for Fed’s 75 bps rate hike, upbeat US data could portray further upside. (FXStreet)

Following the sharp decline witnessed earlier in the week, Bitcoin gained nearly 3% on Tuesday and extended its recovery toward $16,500 early Wednesday. Similarly, Ethereum gained traction and was last seen trading above $1,150, where it was up 2% on the day. (FXStreet)

The Nasdaq 100 index has pulled back in recent days from the upper edge of a rising channel from mid-October. However, there is quite a strong cushion at the resistance-turned-support at the late-October high of 11682. Moreover, the drop this week is about a 38.2% retracement of the November rise, which is a reasonable retracement and not an indication of the start of its well-established downtrend, just yet. (DailyFX)

Brent crude oil is trading higher today after yesterday’s continuation of OPEC+ member nations denying rumors around a possible 500 million bpd output increase. In addition, the API weekly crude oil stock change which missed forecasts (2.6MMbbls), falling by 4.8MMbbls. This morning shows the greenback marginally on the back foot stemming from an underwhelming statement by the Fed’s Bullard who many expected to reiterate his prior hawkish comments which were not the case. (DailyFX)

The Hang Seng Index (HSI) faces quite strong resistance, raising the chances that the three-week rebound could soon run its course. HSI jumped 25% from the October low before retreating in the past couple of sessions from near a stiff hurdle: the 89-day moving average, coinciding with the March low of 18235. The moving average has posed strong resistance since late 2021, so a retreat would by no means be surprising. (DailyFX)

Source: FXStreet, DailyFX

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