Market Update - 06 January 2023

GBP/USD remains on the defensive near a multi-week low amid sustained USD buying. Thursday’s upbeat US data reaffirms hawkish Fed expectations and underpins the USD. The focus remains glued to the release of the closely-watched US monthly jobs report. (FXStreet)

USD/JPY scales higher for the fourth straight day and climbs to over a one-week high on Friday. Thursday’s upbeat US data, hawkish Fed expectations underpin the USD and remain supportive. Investors now look forward to the release of the US NFP report before placing directional bets. (FXStreet)

The index adds to Thursday’s advance and trespasses 105.00. Markets remain largely in a consolidative mood ahead of NFP. All the attention shifts to the US labour market, Fedspeak. The greenback, in terms of the USD Index (DXY), keeps the optimism well and sound and reclaims the area above the 105.00 barrier at the end of the week. (FXStreet)

AUD/USD attracts fresh buyers on Friday, though the intraday uptick lacks bullish conviction. Recession fears act as a headwind for the Aussie amid some follow-through USD buying interest. Traders now look forward to the closely-watched US NFP report for a fresh directional impetus. (FXStreet)

Advancing anxiety ahead of the US NFP release has underpinned the risk-off impulse. S&P500 futures have witnessed a drop in their early gains, portraying negative market sentiment. The upside in the Loonie asset is capped around 1.3700 while the downside is restricted near 1.3500. The USD/CAD pair has rebounded firmly after dropping to near 1.3550 in the early European session. (FXStreet)

A decent recovery in S&P500 futures indicates that the risk-on profile has regained traction. Investors are awaiting the release of the Eurozone Inflation and US NFP for fresh impetus. The RSI (14) has shifted into the bearish range, which indicates that the downside momentum has been triggered. The EUR/USD pair has displayed a rebound move after gauging an immediate cushion around 1.0520. (FXStreet)

NZD/USD is looking to stretch its recovery above 0.6250 backed by a rebound in the risk-on mood. The US Dollar Index is struggling below 104.80 ahead of the US NFP data release. Upbeat US ADP Employment Change data has resulted in more troubles for the Fed policymakers. (FXStreet)

AUD/USD has extended its rebound above the critical hurdle of 0.6770 amid optimism on Sino-Australian trade. S&P500 futures have displayed a recovery move, shrugging-off the bearish sentiment witnessed in Thursday’s session. Investors will get more clarity about the US employment status on the release of the US NFP data (FXStreet)

Thursday’s small bounce in prices of the WTI was on the back of rising open interest, which suggests the probability of another move higher in the very near term. The sharp decline in volume, however, leaves the door open to extra downside to, potentially, the 2022 low near the $70.00 mark per barrel. (FXStreet)

Gold price regains positive traction on Friday and reverses a part of the overnight losses. Some follow-through buying around the USD should keep a lid on the non-yielding metal. Traders keenly await the release of the US monthly employment details, or the NFP report. (FXStreet)

Source: FXStreet, DailyFX

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