Market Update - 12 April 2023

USD/JPY climbs to a four-week high on Wednesday, though lacks follow-through. The fundamental backdrop still supports prospects for additional near-term gains. Traders now look to the US CPI and FOMC minutes for some meaningful impetus. (FXStreet)

AUD/USD picks up bids to renew intraday high, extends the previous day’s rebound from one-week low. Australian Treasurer Chalmers reject recession woes despite suggesting drastic economic slowdown, RBA’s Bullock fails to gain attention. China-linked optimism, Fed policymakers’ receding hawkish bias also propel Aussie prices. US CPI, FOMC Minutes will be crucial to watch for clear directions as RBA’s rate-hike pause prods AUD/USD bulls. (FXStreet)

The index remains on the defensive and hovers around 102.00. Bets on a 25 bps rate raise by the Fed in May remain on the rise. US inflation figures tracked by the CPI will take centre stage. The greenback, in terms of the USD Index (DXY), adds to Tuesday’s losses and keeps the trade around the 102.00 neighbourhood on Wednesday. (FXStreet)

EUR/USD has printed a fresh four-day high at 1.0935 as US Dollar corrects sharply ahead of US Inflation. Anticipation of the quick softening of US inflation has weighed heavily on the USD Index. The ECB would continue hiking rates as Eurozone inflation is extremely persistent. (FXStreet)

GBP/USD grinds higher after crossing one-week-long descending trend line, up for the second consecutive day. Looming bull cross on MACD, sustained trading above short-term key support line, 100-SMA favor Cable buyers. Bears need validation from 1.2180 to retake control. (FXStreet)

USD/CAD prints three-day downtrend amid firmer Oil price, broad US Dollar weakness amid sluggish markets. Downbeat Fed signals join cautious optimism elsewhere to weigh on US Dollar. Oil price cheers softer greenback, hopes of more energy demand and supply crunch woes. BoC is likely to stand pat and may prod Loonie pair sellers but US inflation, FOMC Minutes are the key. (FXStreet)

USD/CHF holds lower grounds inside two-month-old bullish chart pattern. Downbeat MACD, RSI (14) suggest break of wedge towards the south. Four-month-long descending support line lures Swiss Franc bears; buyers need validation from 100-DMA. (FXStreet)

GBP/JPY remains firmer around one-week high, up for the fifth consecutive day. Upside break of February’s high keeps buyers hopeful, two-week-old support line also restricts immediate declines. Six-week-old ascending trend line joins overbought RSI (14) to suggest limited room towards the north. (FXStreet)

USD/IDR has dropped below 14,900 after upbeat Indonesian Retail Sales data. Bank of Indonesia might reconsider its stable policy stance as Retail Sales have expanded by 0.6%. The downside bias for US Dollar has been strengthened after light inflation guidance from Fed policymakers. (FXStreet)

USD/MXN struggles to extend two-day recovery inside one-week-old symmetrical triangle. Bearish moving average crossover, steady RSI line keeps Mexican Peso pair sellers hopeful. Five-week-long ascending trend line adds to the downside filters. (FXStreet)

NZD/USD stages a modest bounce from a nearly four-week low touched earlier this Wednesday. A modest USD weakness lends some support, though looming recession risks act as a headwind. Investors also seem reluctant ahead of the crucial US CPI report and the FOMC meeting minutes. (FXStreet)

USD/INR has continued its auction above 82.00 ahead of US Inflation data. FIIs are turning buyers in the Indian market after months of correction. Oil prices are expected to extend their upside above $81.50 on expectations that the Fed will reach its terminal rate sooner. (FXStreet)

Prices of the WTI kept the positive tone on Tuesday and surpassed the $81.00 mark per barrel amidst increasing open interest and volume, opening the door to the continuation of the uptrend in the very near term and with the immediate target at the 200-day SMA at $83.26. (FXStreet)

Prices of the natural gas extended the weekly rebound on Tuesday. The uptick, however, was on the back of declining open interest and volume and suggests the a more serious recovery appears not favoured for the time being, leaving the current consolidation range well unchanged. (FXStreet)

Gold price extends week-start rebound from 10-DMA to approach multi-day-old resistance line. Mostly downbeat Fed talks, market’s cautious optimism exert downside pressure on US Dollar and propel XAU/USD price. Softer US CPI, lack of clear guidance in FOMC Minutes can allow Gold buyers to keep the reins. (FXStreet)

Silver confirms a breakout through a multi-day-old trading range and touches a fresh one-year high. The RSI on the daily chart is flashing overbought conditions and warrants caution for bullish traders. Any corrective pullback below the $25.00 mark is more likely to get bought into and remain limited. (FXStreet)

Source: FXStreet, DailyFX

Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.