What happened in the US session?
Happy to all, the market reopened in 2023 with prices continuing within a consolidation within the New Year period.
What does it mean for the Asia Session?
With no major news events during the Asia session, the major currencies are likely to trade with choppy price action as the prices look to break out of the previous consolidation.
The Dollar Index (DXY)
Key news events today
No major news events.
What can we expect from DXY today?
The DXY trades at the 103.30 price level following a brief surge to the upside. As the DXY continues with the current downtrend, look for the DXY to break below the 103-round number support level to signal further downside potential. The next key support level is at 102.60.
Central Bank Notes:
- Federal Reserve hiked rates by 50bps taking interest rates to 4.50%
- Next meeting is on 2 February 2023
- Further rate increases are expected to slow
Next 24 Hours Bias
Weak Bearish
Gold (XAU)
Key news events today
No major news events.
What can we expect from Gold today?
As the DXY continued to trade lower, Gold surged higher, breaking above the previous high of 1820 to climb toward the 1840 price level. With expectations for further weakness in the DXY, look for Gold to continue trading higher toward the next key resistance level of 1850.
Next 24 Hours Bias
Weak Bullish
The Australian Dollar (AUD)
Key news events today
No major news events.
What can we expect from AUD today?
The AUDUSUD traded with some volatility early in the trading session today as the price broke lower to test the 0.6775 price level before retracing back toward the 0.68 price level again. Look for the AUDUSD to break above the 0.68 round number resistance level strongly to signal further upside potential, with the next key resistance level at 0.69.
Central Bank Notes:
- Cash rate stands at 3.10%
- Future rate rises will be determined by data, the outlook for inflation, and the labour market.
- Next meeting on 7 February 2023
Next 24 Hours Bias
Weak Bullish
The Kiwi Dollar (NZD)
Key news events today
No major news events.
What can we expect from NZD today?
The NZDUSD traded with significant volatility early in the trading session today as the price broke lower but surged higher following the move lower. Currently trading that 0.6350 price level, the NZDUSD could continue trading higher toward the next key resistance level of 0.6420.
Central Bank Notes:
- Cash rate stands at 4.25%
- Central bank is likely to continue with the current path of rate adjustment
- Next meeting is on 21 February 2023
Next 24 Hours Bias
Weak Bullish
The Japanese Yen (JPY)
Key news events today
No major news events.
What can we expect from JPY today?
The USDJPY broke lower from the previous consolidation at the 130.90 price level, reaching the 129.90 price level. Look for further downside with the anticipation for further DXY weakness, especially if the USDJPY closes strongly below the 129.80 price level. The next key support level for the USDJPY is at the 127-round number level.
Central Bank Notes:
- Cash rate stands at -0.1%
- Expands range for 10 year JGB yield fluctuations to 0.5%, rather than the current of 0.25%
- Next meeting is on 18 January 2023
Next 24 Hours Bias
Weak Bearish
