Market Update - 06 September  2023

USD/CAD oscillates in a narrow trading band below the multi-month top set on Tuesday. Bullish Oil prices underpin the Loonie and cap the upside amid subdued USD price action. Traders now look forward to the BoC policy decision before placing fresh directional bets. (FXStreet)

GBP/JPY loses momentum, snaps two-day winning streak on Wednesday. UK S&P Global/CIPS Composite PMI fell to 48.6 in August vs. 50.8 prior. Japanese policymakers will closely monitor FX movements with a sense of urgency. The attention will shift to Japan’s Gross Domestic Product (GDP) due on Friday. (FXStreet)

EUR/USD struggles to extend corrective bounce off three-month low after downbeat German data. German Factory Orders dropped the most since early 2020s with -11.7% YoY figures. Eurozone recession fears contrast with US soft landing chatters to underpin bearish bias about the Euro pair. Eurozone Retail Sales for July, US ISM Services PMI for August eyed for clear directions. (FXStreet)

USD/JPY treads waters below 147.50 ahead of the US PMI releases. Japan's currency diplomat Kanda indicated market intervention; underpins the Japanese Yen (JPY). The resurgence of trade tensions between the US and China weighed on the pair. (FXStreet)

AUD/USD stages a modest recovery from the YTD trough, albeit lacks follow-through. A slightly better Australian GDP lends support to the pair amid subdued USD demand. China’s economic woes cap any meaningful gains ahead of the US ISM Services PMI. (FXStreet)

The index faces some selling pressure following recent tops. US yields add to Tuesday’s upside across the curve. Investors’ attention is expected to be on the US services sector. The greenback appears somewhat offered around the 104.70 region when tracked by the USD Index (DXY) on Wednesday. (FXStreet)

EUR/JPY cross attracts some dip-buying in reaction to hawkish remarks by ECB’s Knot. Intervention fears, along with the cautious mood, benefit the JPY and cap the upside. The divergent ECB-BoJ policy suggests that the path of least resistance is to the upside. (FXStreet)

NZD/USD struggles to approach 0.5900 ahead of the US PMI releases. Fed is expected to increase another 25 basis points rate hike by the end of 2023. US-China trade tension exerts downward pressure on the New Zealand Dollar (NZD). (FXStreet)

USD/TRY picks up bids to refresh two-week high, consolidating late August slump. US Dollar Index (DXY) retreats from multi-day high amid market’s preparations for this week’s US data. Concerns about US soft landing contrasts with economic fears surroudning Türkiye to favor Turkish Lira bears. US data, risk catalysts eyed for clear directions, CBRT gains less importance of late. (FXStreet)

USD/MXN gains momentum for the fourth straight day, holds above the 50- and 100-day EMAs on the daily chart. Relative Strength Index (RSI) stands above 50 and MACD is located in bullish territory. The immediate resistance level is seen at 17.77; the first support level is located at 17.35. (FXStreet)

USD/CHF trades sideways around 0.8890 ahead of the US PMI releases. Fed Governor Christopher Waller stated that the interest rates decision would be data-driven. US Commerce Secretary Gina Raimondo expects no revisions to the US tariffs on China. (FXStreet)

USD/RUB loses momentum near 97.70 amid the rally in oil prices. Russia's economic growth will be towards the top end of the 1.5%-2.5% expected range in 2023. Investors anticipate a 25 basis point (bps) rate increase from the Fed for the entire year, bringing rates to 5.75%. US ISM Services PMI data will be in the spotlight on Wednesday. (FXStreet)

Gold Price seesaws within key trading range despite the previous day’s heavy loss. Market’s consolidation amid China stimulus hopes, anxiety ahead of US data allow XAU/USD bears to take a breather. Fears of economic slowdown in Beijing contradict US soft landing chatters and weigh on the Gold Price. US ISM Services PMI, Fed talks eyed for fresh impulse. (FXStreet)

Silver Price prints mild gains at two-week low after falling the most in a month. Oversold RSI (14) allows XAG/USD to prod five-day losing streak at multi-day bottom. Downbeat MACD signals, Bull Cross test Silver sellers amid sluggish markets. XAG/USD rebound remains elusive below $23.75, descending trend line from late July is a tough nut to crack for buyers. (FXStreet)

Source: FXStreet

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.