Market Update - 06 December 2022

USD/JPY touches a three-day high on Tuesday, albeit lacks follow-through or bullish conviction. Bets for further policy tightening by the Fed underpin the USD and lends support to the pair. BoJ Governor Kuroda's comments on exiting the ultra-loose monetary policy cap the upside. (FXStreet)

EUR/USD struggles to capitalize on its intraday uptick amid some buying around the USD. The better-than-expected German Factory Orders data also does little to provide impetus. The fundamental backdrop supports prospects for some meaningful corrective pullback. (FXStreet)

USD/CAD struggles for a firm intraday direction and remains confined in a range on Tuesday. A modest uptick in crude oil prices underpins the Loonie and acts as a headwind for the pair. The downside remains cushioned amid the emergence of some buying around the US Dollar. (FXStreet)

GBP/JPY picks up bids to challenge six-week-old resistance. Cautious optimism underpins recovery moves amid sluggish session. BOE hawks, indecision surrounding BOJ’s next move favor pair buyers. (FXStreet)

GBP/USD has surrendered the psychological support of 1.220 amid negative market sentiment. The US Dollar is aiming higher as investors are expected that Fed’s interest rate will peak around 5.50-5.75%. Upbeat UK consumer spending is going to create more troubles for the BOPE ahead. (FXStreet)

NZD/USD fails to preserve its modest intraday gains amid some follow-through USD buying. Bets that the Fed will continue to raise interest rates offer some support to the greenback. The optimism over the easing of restrictions in China limits losses for the risk-sensitive Kiwi. (FXStreet)

USD/INR picks up bids to refresh multi-day top during three-day uptrend. Strong US data, fears surrounding RBI’s rate hike favor buyers. Sluggish oil prices, pre-Fed blackout test upside momentum. (FXStreet)

AUD/JPY jumped 30+ pips as RBA announced a 0.25% rate hike and expected further lifts in the key rate. Cautious optimism in the market also underpins the bullish bias. Chatters surrounding the BOJ’s monetary policy tightening challenge upside moves. (FXStreet)

AUD/USD snaps two-day downtrend on 0.25% rate hike from Reserve Bank of Australia, signals of further rate hikes. Firmer data from United States contrast with inflation expectations and probe US Dollar bulls. Hoes of China repealing its Zero-Covid policy also favor Australian Dollar bulls amid the sluggish session. Confirmation of rising wedge bearish technical pattern challenge AUD/USD upside. (FXStreet)

Gold price bounces off one-month-old support line to pare the biggest daily loss in 10 weeks. US inflation expectations challenge hawkish hopes from Federal Reserve. Optimism surrounding China adds strength to XAU/USD recovery. (FXStreet)

Silver pares intraday gains after reversing from seven-month high. 50-HMA breakdown keeps sellers hopeful but sluggish MACD immediate support line restricts downside moves. 200-HMA, nearly descending trend line act as additional trading filters. (FXStreet)

Source: FXStreet, DailyFX

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