Market Update - 30 December 2022

The Dollar depreciates for the second day in a row and reaches the 132.00 area. COVID-19 fears and the BoJ's bond purchases are underpinning Yen's recovery. The USD/JPY is about to close its best year since 2013. (FXStreet)

US Dollar Index picks up bids to pare early-day losses amid sluggish session. US Treasury bond yields seek fresh clues, risk catalysts flash mixed signals. Softer US data weigh on hawkish Fed bets but fears from China keep DXY firmer. Second-tier US data, Xi-Putin talks eyed for fresh impulse. (FXStreet)

EUR/USD renews intraday low while paring the biggest daily in two weeks.RSI, MACD signals suggest that bulls are running out steam. May’s top acts as the key upside hurdle, bears need validation from “golden ratio”. (FXStreet)

USD/CAD is displaying a sideways profile around 1.3550 as investors are avoiding building positions amid the festive season. Federal Reserve might continue its hawkish policy as the street sees inflation well above 3% in CY2023. The US Dollar witnessed selling pressure after the release of additions in the weekly Initial Jobless Claims. USD/CAD is likely to continue its rangebound structure amid the unavailability of any major economic event. (FXStreet)

GBP/USD takes offers to refresh intraday low, pares the biggest daily gains in two weeks. UK PM Sunak is up for a bitter announcement, British commercial properties remain weak. US Dollar licks its wounds as UK-based data firm hints higher Covid-led deaths, yields pause previous fall. Second-tier data, risk catalysts will be eyed for fresh impulse. (FXStreet)

AUD/USD fades bounce off 50-HMA amid failures to cross three-day-old descending resistance line. Looming bear cross on MACD keeps sellers hopeful but 200-HMA is a tough nut to crack for sellers. Bulls need validation from 0.6800 to retake control. (FXStreet)

NZD/USD has slipped sharply below 0.6320 as the US Dollar Index has shown a recovery move. Market mood is turning cautious as the Covid-19 situation in China is getting vulnerable. Going forward, investors will keep an eye on China’s official PMI data. (FXStreet)

USD/INR has dropped to near 82.70 as investors are adjusting positions after an ease in the risk-off mood. Analysts at Deutsche Bank see inflation above the target of 2% set by the Fed. The Indian Rupee bulls will display action according to the oil price activity ahead. (FXStreet)

AUD/JPY has slipped below the psychological support of $90.00 amid China’s Covid uncertainty. China’s official PMI data for December is expected to outperform ahead. The BoJ will supply about JPY one trillion at a 0.0% interest rate in operations on January 4. (FXStreet)

WTI remains mildly bid after consecutive three days of downbeat performance. Bullish candlestick formation, sustained bounce off 21-DMA favor buyers. Previous support line, 50-DMA challenges immediate upside ahead of the monthly high. (FXStreet)

Gold price defends the previous day’s bullish bias despite recent struggle around daily top. Mixed sentiment, sluggish markets restrict XAU/USD moves but buyers cheer second monthly gain as 2022 bids adieu. Hopes of economic recovery, lower rates could keep Gold buyers on the table even as Covid, geopolitics probe immediate upside. (FXStreet)

Silver price eases after positing the biggest daily gains in over a week. Impending bear cross on MACD, RSI retreat add strength to the fears of a pullback. 200-HMA, weekly support line to restrict short-term downside. Double tops around $24.30 appears the key hurdle towards the north. (FXStreet)

Source: FXStreet, DailyFX

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