Market Update - 16 Aug 2023

The EUR/USD pair trades on a defensive note around the 1.0915 mark heading into the early European session on Wednesday. Market players await the Eurozone Gross Domestic Product (GDP) Q2 and Harmonized Index of Consumer Prices (HICP) for July, due later this week. The Eurozone growth number are expected to remain at 0.3% and 0.6% on a quarterly and yearly basis, respectively. While the Eurozone HICP MoM is expected to stay at -0.1%. (FXStreet)

The USD/JPY pair remains confined around the 145.45–70 region in a narrow trading band in the Asian session on Wednesday. Traders continue to fear intervention by the Bank of Japan (BoJ) as the JPY weakens to a 9-month low. The major currently trades near 145.52, losing 0.02% for the day. (FXStreet)

USD/CHF stays defensive around 0.8780 as it struggles to keep the five-week uptrend heading into Wednesday’s European session. That said, the Swiss Franc (CHF) pair’s latest inaction could be linked to the market’s cautious mood ahead of the Federal Open Market Committee’s (FOMC) latest Monetary Policy Meeting Minutes. (FXStreet)

The AUD/USD pair stages a goodish intraday recovery from the 0.6430-0.6425 region, or its lowest level since November 2022 touched this Wednesday and builds on the momentum through the early part of the European session. Spot prices climb to a fresh daily top, around the 0.6480 region in the last hour and for now, seem to have snapped a six-day losing streak. (FXStreet)

USD/CAD bulls take a breather at the highest level since early June, keeping the reins around 1.3500 heading into Wednesday’s European session. In doing so, the Loonie pair struggles between the contrasting catalysts, namely the US Dollar’s retreat and the WTI crude oil’s downbeat performance, amid the cautious mood ahead of today’s Federal Open Market Committee’s (FOMC) latest Monetary Policy Meeting Minutes. (FXStreet)

The NZD/USD pair gains momentum and edges higher to 0.5980 heading into the early European session on Wednesday. The pair bounces off the yearly low of 0.5930 following the Reserve Bank of New Zealand (RBNZ) monetary policy meeting earlier in the day. (FXStreet)

AUD/JPY trades higher around 94.10 in the early European trading hours on Wednesday. The pair is rebounding from the losses recorded on Tuesday, with the resilience of the Australian Dollar (AUD) potentially linked to the drop in US bond yields. (FXStreet)

The GBP/JPY cross gains traction and edges higher to the 185.00 area heading into the early European session on Wednesday. The positive UK inflation data is supporting the cross's momentum. Meanwhile, the possible FX intervention by the Japanese central bank remains in focus. (FXStreet)

USD/MXN retreats to 17.35 as bulls struggle to keep the reins amid the market’s consolidation ahead of the Federal Reserve’s (Fed) monetary policy meeting minutes. That said, the Mexican Peso (MXN) pair drops for the first day so far in three while fading the previous day’s rebound from the 200-Hour Moving Average (HMA). (FXStreet)

The EUR/JPY cross struggles to gain any meaningful traction and oscillates in a narrow trading band through the Asian session on Wednesday. Spot prices currently trade around the 158.70 region, nearly unchanged for the day, though remain well within the striking distance of the highest level since September 2008 touched on Tuesday. (FXStreet)

USD/INR prints mild losses around 83.30-25 as the Indian Rupee (INR) licks its wounds around the record low on early Wednesday. In doing so, the Asian currency justifies the market’s consolidation ahead of the Fed Minutes while also cheering downbeat WTI crude oil prices, India’s major import burden. (FXStreet)

USD/CNH takes offers to refresh intraday low near 7.3160 during early Wednesday morning in China. In doing so, the offshore Chinese Yuan (CNH) pair reverses from the Year-To-Date (YTD) high marked earlier in the day as markets prepare for the Federal Open Market Committee (FOMC) Monetary Policy Meeting Minutes. (FXStreet)

The AUD/NZD cross comes under heavy selling pressure after the Reserve Bank of New Zealand (RBNZ) announced its policy decision and dives to a multi-day low during the Asian session on Wednesday. Spot prices currently trade around the 1.0800 mark, which bears now awaiting a break below the 100-day and the 200-day Simple Moving Averages (SMAs) confluence before positioning for a further pullback from a two-and-half-week high set on Tuesday. (FXStreet)

The GBP/JPY cross consolidates its recent gains near 184.80 during the Asian session on Wednesday. Markets turn cautious ahead of the release of the UK Consumer Price Index (CPI) data later in the European session. (FXStreet)

Daily USD/ZAR price action surpassed the July swing highs today; however, the corresponding Relative Strength Index (RSI) levels show opposing levels indicative of bearish divergence. Taking this into account, there may be a pullback to come which will require a fundamental catalyst to drive the move (DailyFX)

Prices of WTI extended the weekly leg lower on Tuesday. The downtick, however, was on the back of shrinking open interest, which suggests that a deeper pullback may not be favoured in the very near term. On the upside, the 2023 peaks near the $85.00 mark per barrel (August 10) emerge as the immediate obstacle for bulls for the time being. (FXStreet)

Prices of natural gas dropped markedly on Tuesday amidst the sharp rejection from last week’s tops around the key $3.00 mark per MMBtu (August 9). The strong decline was accompanied by a drop of interest rate, which removes some strength from the deep sell-off. In the meantime, the commodity is expected to face provisional support at the 55-day SMA near $2.58. (FXStreet)

Gold Price (XAU/USD) recovers from the lowest level since late June as the market prepares for the US Federal Reserve (Fed) monetary policy meeting minutes. Adding strength to the corrective bounce could be the latest cautious optimism in the market amid hopes of more stimulus from China, as well as an end to Fed’s tightening cycle due to the recently mixed US data. It’s worth noting that the inaction of major central banks in the last few days also suggests an end of the rate-hike cycle and puts a floor under the XAU/USD price, especially when China shows readiness for more stimulus and Indian statistics remain firmer. (FXStreet)

Silver gains some positive traction on Wednesday and builds on the previous day's late rebound from the $22.20 area, or a nearly two-month low. The white metal extends its steady intraday ascent through the early part of the European session and climbs to a fresh daily high, around the $22.65-$22.70 region in the last hour. (FXStreet)

Source: FXStreet, DailyFX

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