Market Update - 29 Aug 2023

USD/CHF takes offers to extend Friday’s retreat from seven-week high to print two-day losing streak. Upbeat oscillators, key support keeps Swiss Franc pair buyers hopeful despite latest U-turn from multi-month-old resistance line. Convergence of 50-DMA, rising trend line from mid-July appears a tough nut to crack for bears. US CB Consumer Confidence eyed for clear directions as Fed Powell’s speech highlighted data dependency for future policy moves. (FXStreet)

USD/CAD trades around 1.3600 ahead of the releases of US macroeconomic data. The decline in Crude oil prices is exerting upward pressure on the USD/CAD pair. China's fiscal stimulus faded the safe haven appeal of the US Dollar (USD). (FXStreet)

AUD/USD trades higher ahead of the releases of US macroeconomic data. Investors seek fresh impetus on the economic outlook of both countries. Australia's CPI is due to be released on Wednesday; market consensus shows a reduction. (FXStreet)

GBP/USD extends its gains on the back of downbeat US Treasury yields. China's fiscal stimulus is giving rise to cautious optimism and weakening the Greenback. Investors await US data releases to gain fresh impetus on the economic outlook. (FXStreet)

USD/JPY prints the first daily loss in four despite lacking downside momentum of late. Japan government report cites 'inflection point' in 25-year battle with deflation, teases BoJ hawks amid softer yields. Downbeat Japan employment data, mixed concerns about inflation keep Yen pair buyers hopeful. US CB Consumer Confidence, yields eyed for fresh impulse. (FXStreet)

EUR/USD holds below the 50- and 100-day EMAs on a four-hour chart. The Relative Strength Index (RSI) remains in bearish territory. The first resistance level appears at 1.0845-1.0850 region; the key support level to watch is 1.0800. (FXStreet)

The index keeps a tight range near the 104.00 region. The dollar’s rally stalled ahead of 104.50 for the time being. CB Consumer Confidence, housing data next on tap in the docket. The greenback alternates gains with losses around the 104.00 yardstick when measured by the USD Index (DXY) on turnaround Tuesday. (FXStreet)

EUR/GBP reverses from two-week high to print the first daily loss in five. UK BRC Shop Price Index drops to the lowest level since October 2022. Germany’s GfK Consumer Confidence Survey gauge slumps -25.5 versus -24.3 expected and -24.6 prior. British trader’s reaction to Jackson Hole, inflation concerns eyed for fresh impulse after long weekend in UK. (FXStreet)

EUR/JPY gains momentum for four straight days above the 158.50 mark. Japanese Unemployment Rate rose to 2.7% in July versus 2.5% in the previous month. Investors will focus on German Consumer Price Index (CPI), Eurozone CPI, ECB meeting minutes. (FXStreet)

NZD/USD gains positive traction for the second straight day and is supported by a softer USD. Retreating US bond yields and a positive risk tone drag the USD away from a three-month top. Bets for more Fed rate hikes should limit the USD downside and cap further gains for the pair. (FXStreet)

USD/CNH lacks any firm intraday direction and remains confined in a range on Tuesday. A sustained break and acceptance below 7.2700 will pave the way for additional losses. Bulls need to wait for a move beyond the 7.3000 before positioning for any further upside. (FXStreet)

NZD/USD defends the week-start rebound from yearly low despite lacking momentum of late. US Dollar extends pullback from 11-week high amid cautious optimism, downbeat yields. Hopes of early PBoC rate cut, more stimulus from China propel Kiwi prices. US CB Consumer Confidence, risk catalysts eyed for clear directions. (FXStreet)

WTI crude oil extends the week-start retreat within a fortnight-old bearish channel. Downside break of rising support line from Wednesday, looming bear cross on MACD also favor energy sellers. Oil price recovery needs validation from 100-SMA and US data to recall commodity buyers. (FXStreet)

Natural Gas Price pares intraday loss during four-day winning streak around weekly top. Hopes of more energy demand due to weather forecasts, tropical storm Idalia and supply crunch fears fuel XNG/USD price. Softer US Dollar, cautious optimism also underpin XNG/USD run-up. Risk catalysts eyed for clear directions, US Dollar moves will be crucial to watch. (FXStreet)

Gold price attracts some buyers for the second successive day amid modest USD weakness. Retreating US bond yields drags the USD away from a nearly three-month top set last week. Hawkish Fed expectations should limit the USD losses and cap the upside for the XAU/USD. (FXStreet)

Silver regains positive traction on Tuesday, albeit lacks follow-through. Positive oscillators on the daily chart support prospects for further gains. A break below $23.80 support might prompt aggressive technical selling. (FXStreet)

Source: FXStreet

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