Market Update - 29 December 2022

USD/JPY picks up bids pares the first daily loss in six. US 10-year Treasury yields refresh intraday low, extend pullback from six-week high. China CDC official warns of more Covid spread, explosions heard in Kyiv, Kharkiv. BOJ undertook two back-to-back unplanned bond purchases in a single day. (FXStreet)

GBP/USD takes offers to trim the first daily gain in three. Multiple nations, including Britain, announced fresh barriers for Chiense travellers amid Coronavirus woes. Geopolitical tensions in Kherson escalate, a blast heard in Kyiv. Pullback in US Treasury bond yields, mixed US data probe Cable bears. (FXStreet)

EUR/USD pares the first daily gains in three during sluggish session. Clear downside break of weekly support line, sustained trading below 100-SMA favor sellers. Descending trend line from Tuesday adds to the upside filters. Weekly horizontal support restricts immediate downside amid steady RSI. (FXStreet)

US Dollar Index snaps two-day uptrend, bounces off intraday low of late. US 10-year Treasury bond yields print the first intraday loss in five at 1.5-month high. Multiple nations announced requirement of COVID-19 tests for Chinese travelers. Mixed US data, lack of major catalysts triggered consolidation despite risk-off mood. (FXStreet)

EUR/GBP struggles to extend pullback from 11-week high. US Treasury yields retreat from three-week top, EU bond coupons grind near 11-year high but Gilts stay depressed. Geopolitical fears from Russia join China Covid woes but lack of market participation, absence of major data bore momentum traders. (FXStreet)

USD/CAD renews intraday low while paring the biggest daily jump in a fortnight. Convergence of 100-SMA, previous support line from mid-November challenge upside moves. 200-SMA appears a tough nut to crack for the bears. (FXStreet)

Aussie's uptrend capped at 0.6800; the pair retreats to 0.6720. Market mood sours on concerns about COVID-19 infections in China. AUD/USD remains within recent ranges with the market focused on US data. (FXStreet)

NZD/USD is aiming to reclaim the 0.6350 hurdle despite a solid risk-aversion theme. The New Zealand Dollar is holding its revival amid optimism about China’s reopening. Fed’s ultra-hawkish policy has resulted in a sheer decline in US Pending Home Sales data. (FXStreet)

USD/INR stays defensive amid sluggish markets, grinds lower of late. China Covid concerns weigh on risk profile in Asia but softer US Treasury yields probe Indian Rupee bears. India Trade Deficit for Q3, US Initial Jobless Claims eyed for fresh impulse. (FXStreet)

USD/CHF prints three-day losing streak, renews intraday low of late. Swiss ZEW Survey – Expectations improved in December to -42.8. Lack of market’s confidence in the US Dollar’s recovery favors bears amid mostly downbeat sentiment. Yields refreshed multi-day top on China, Russia concerns before easing amid a lackluster trading session. (FXStreet)

Oil price has recovered to near $79.00 after a revival move amid China’s Covid-inspired uncertainty. The US Dollar Index slipped to near intraday low around 104.30 as investors turned anxious amid the festive mood. Investors are keeping an eye on the official United States oil inventory data for fresh cues. Oil price is at a make or a break around the upward-sloping trendline from $79.50. (FXStreet)

Gold price grinds higher inside three-week-old bearish triangle. Pullback in US Treasury bond yields, mixed US data favor XAU/USD bulls. Chinese travellers to face multiple tests amid Covid spread, CDC Official sounds optimistic. Explosions were heard in Ukraine’s capital Kyiv, tensions escalate in Kherson. (FXStreet)

Source: FXStreet, DailyFX

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