Market Update - 28 Aug 2023

EUR/USD remains on the defensive around 1.0808, bouncing off the low of 1.0765. European Central Bank (ECB) President Lagarde said that the fight against inflation is not over. Fed’s Powell is prepared to raise interest rates further, if necessary. Investors await Eurozone CPI data, US Nonfarm Payrolls data for fresh impetus. (FXStreet)

USD/JPY retreats from YTD high but lacks downside momentum while printing the first daily loss in three. Fed’s Powell defends higher rates but cites data-dependency to prod policy hawks. BoJ’s Ueda cites inflation concerns to support ultra-easy monetary policy. China-inspired risk-on mood, positioning for top-tier data also weigh on Yen pair. (FXStreet)

GBP/USD attracts some buying on Monday and draws support from a modest USD downtick. Hawkish remarks by BoE's Broadbent underpin the GBP and act as a tailwind for the major. Bets for one more Fed rate hike in 2023 should limit the USD losses and cap any further gains. (FXStreet)

AUD/USD attracts some intraday sellers on Monday and retreats to the daily low in the last hour. Looming recession risks overshadow China’s new measures and act as a headwind for the major. Bets for one more Fed rate hike in 2023 limit the USD losses and contribute to capping the upside. (FXStreet)

The index slips back to the 104.00 region on Monday. The dollar comes under pressure as investors digest Powell’s speech. The Dallas Fed manufacturing gauge is due in the US docket. The greenback, when tracked by the USD Index (DXY), comes under some downside pressure and disputes the 104.00 yardstick in the wake of the opening bell in Euroland on Monday. (FXStreet)

USD/CAD consolidates due to improved prices of Crude oil. Investors await top-tier macroeconomic data releases from both economies. Chinese authorities reduced the stamp duty on stock trading; WTI crude oil strengthened. (FXStreet)

USD/CHF trades lower around 0.8830 due to the retreating US Treasury yields. US Dollar (USD) weakened despite the Fed’s hawkish stance at the Jackson Hole Symposium. Fed Chair Jerome Powell endorsed the idea of maintaining "higher for longer" interest rates. (FXStreet)

EUR/GBP traders turn cautious after hawkish statements made by central banks' officials at Jackson Hole Symposium. ECB President Christine Lagarde stated that the battle against inflation continues. Deputy Governor Ben Broadbent’s hawkish statement supported the Pound Sterling. (FXStreet)

GBP/JPY stretches previous rebound from monthly support to cross one-week-old resistance line, edges higher of late. Bullish MACD signals, upbeat RSI conditions add strength to recovery moves toward 50-SMA. 200-SMA acts as an extra filter towards the south. (FXStreet)

NZD/USD attracts some buyers above 0.5900 on Monday. Chinese finance ministry would reduce the 0.1% duty on stock trading to boost the capital market, strengthen investor confidence. Fed is prepared to hike interest rates further if required but it would be determined by data. Market players await the US Nonfarm Payrolls, Chinese Caixin Manufacturing PMI. (FXStreet)

AUD/JPY trades within a descending trend channel on the four-hour chart. The first resistance level for the cross emerges at 94.40; the initial support level is located at 93.85. The Relative Strength Index (RSI), MACD stands in the bullish territory. (FXStreet)

WTI crude oil prints the first daily loss in three while retreating from short-term key resistance line. Convergence of 200-day EMA, 50-day EMA puts a floor under the Oil Price. Market’s cautious optimism also favors energy buyers despite mild losses. (FXStreet)

Natural Gas price scales higher for the third straight day and climbs to a nearly two-week top. The recent bounce from the 100-day SMA and the ascending channel formation favour bulls. Positive oscillators on the daily chart support prospects for an extension of the positive move. (FXStreet)

Silver edges lower on Monday and corrects further from over a three-month high. The 200-period SMA on the 4-hour chart to act as a pivotal point and limit losses. Bulls might wait for a move beyond the $24.35-40 area before placing fresh bets. (FXStreet)

Source: FXStreet

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