IC Markets

2023-02-24 07:20:00 The Dollar Index (DXY)
Key news events today
USD Core PCE Price Index
What can we expect from DXY today?
Overnight, the USD GDP was released slightly lower than expected at 2.7% (Forecast: 2.9%). This saw the DXY spike down briefly but the price bounced strongly off the 104.40 price area to continue its upward momentum. As the DXY breaks above 104.55, look for the uptrend to continue. Look towards the Core PCE price index to be released today (Forecast: 0.4% Previous: 0.3%) to signal slightly faster than anticipated inflation growth. This could be indicative that further interest rate hikes would be required from the Federal Reserve, which could see the DXY trade higher, toward the next key resistance level of 105.50.
Central Bank Notes:
Federal Reserve hiked rates by 25bps taking interest rates to 4.75%
Next meeting is on 23 March 2023
Ongoing rate increases will be expected

Next 24 Hours Bias
Weak Bullish Open / Comment

2023-02-23 07:36:14 The Japanese Yen (JPY)
Key news events today
No major news events.
What can we expect from JPY today?
Overnight, the USDJPY tested the 135-round number resistance level several times but failed to break higher, despite the strength of the DXY. Currently trading at the 134.80 price level, look for the USDJPY to consolidate briefly before potentially breaking out to the upside. If the price breaks above the 135 price level, the next key resistance level for the USDJPY is 138.
Central Bank Notes:
Cash rate stands at -0.1%
Expanded range for 10 year JGB yield fluctuations to 0.5%
Next meeting is on 8 March 2023

Next 24 Hours Bias
Weak Bearish Open / Comment

2023-02-23 07:35:55 The Kiwi Dollar (NZD)
Key news events today
No major news events.
What can we expect from NZD today?
Unlike the AUDUSD, the NZDUSD resisted significant moves to the downside as the price was supported at the 0.62 price area. As the price fluctuates between the 0.62 and 0.6250 price range, look for a potential breakout to the upside. If the price breaks above 0.6250, the NZDUSD could climb to the key resistance level of 0.63.
Central Bank Notes:
Cash rate stands at 4.75%
Central bank is likely to continue with the current path of rate adjustment
Next meeting is on 5 April 2023
Next 24 Hours Bias
Weak Bullish Open / Comment

2023-02-23 07:35:28 The Australian Dollar (AUD)
Key news events today
No major news events.
What can we expect from AUD today?
The AUDUSD continued its slide to the downside, reaching the 0.68 round number support level overnight. However, the price failed to break the support and bounced to retrace briefly. Currently trading at the 0.6830 price area, the AUDUSD could continue to trade slightly higher to the 0.6850 price level before continuing with the downtrend again. If the AUDUSD breaks below 0.68, the next key support level is at 0.6660.
Central Bank Notes:
Cash rate stands at 3.35%
Future rate rises are expected as RBA targets the 2-3% inflation target.
Next meeting on 7 March 2023
Next 24 Hours Bias
Weak Bearish Open / Comment

2023-02-23 07:35:05 Gold (XAU)
Key news events today
No major news events.
What can we expect from Gold today?
Gold fluctuated between 1832 and 1846 through most of the trading session yesterday. However, as the DXY strengthened, this led to Gold breaking below the consolidation to reach a near-term low of 1823. Look for the price to complete the current retracement and to trade lower again. If the price breaks below 1820, the next key support levels are at the round number level of 1800 and 1775.
Next 24 Hours Bias
Medium Bearish Open / Comment

2023-02-23 07:34:37 The Dollar Index (DXY)
Key news events today
USD FOMC Meeting Minutes
USD Prelim GDP q/q
What can we expect from DXY today?
The DXY climbed steadily higher overnight to reach the 104.50 price area before retracing again. The move higher was spurred on by the release of the FOMC meeting minutes which indicated that members backed the 25bps rate hike and some could have supported a 50bps hike decision. Currently trading at the 104.35 price level, look for the DXY to consolidate along the current level or retrace further briefly before trading higher again. If the DXY breaks above 104.55, the next key resistance level is at 105.50.
Central Bank Notes:
Federal Reserve hiked rates by 25bps taking interest rates to 4.75%
Next meeting is on 23 March 2023
Ongoing rate increases will be expected

Next 24 Hours Bias
Weak Bullish Open / Comment

2023-02-22 07:38:48 The Japanese Yen (JPY)
Key news events today
No major news events.
What can we expect from JPY today?
The USDJPY climbed steadily to the upside reaching a high of 135.25 as the DXY strengthened yesterday. However, with the BoJ releasing comments about the need to review the current monetary policy and the possibility of introducing tightening measures, these have capped the potential upside for the USDJPY. The USDJPY currently trades at the 134.75 price level with price action signaling further downside potential, with the immediate key support level at the round number support level of 134.00.
Central Bank Notes:
Cash rate stands at -0.1%
Expanded range for 10 year JGB yield fluctuations to 0.5%
Next meeting is on 8 March 2023

Next 24 Hours Bias
Weak Bullish Open / Comment

2023-02-22 07:38:25 The Kiwi Dollar (NZD)
Key news events today
NZD Official Cash Rate
NZD RBNZ Monetary Policy Statement
NZD RBNZ Rate Statement
What can we expect from NZD today?
The RBNZ increased rates by 50bps to take interest rates to 4.75%. This decision saw the NZDUSD spike up from the 0.6220 price level, up to the 0.6250 level. However, the move higher has retraced back to the starting level. This indicates a downward pressure on the NZDUSD. If the NZDUSD breaks below the 0.62 round number support level, further downside could be anticipated, with the next key support level at 0.6040.
Central Bank Notes:
Cash rate stands at 4.75%
Central bank is likely to continue with the current path of rate adjustment
Next meeting is on 5 April 2023
Next 24 Hours Bias
Weak Bearish Open / Comment

2023-02-22 07:37:33 The Australian Dollar (AUD)
Key news events today
AUD Wage Price Index q/q
What can we expect from AUD today?
The AUDUSD spiked lower following the release of the wage price index which was released at 0.8% (Forecast: 1%). However, the move lower was quickly retraced with the AUDUSD trading along the 0.6850 price level. The AUDUSD could see choppy price action as the downward pressure is offset by the upward move on the NZDUSD following the RBNZ interest rate decision. If the price closes below 0.6800, the AUDUSD could trade lower toward the 0.6680 support level.
Central Bank Notes:
Cash rate stands at 3.35%
Future rate rises are expected as RBA targets the 2-3% inflation target.
Next meeting on 7 March 2023
Next 24 Hours Bias
Weak Bearish Open / Comment

2023-02-22 07:37:12 Gold (XAU)
Key news events today
No major news events.
What can we expect from Gold today?
Gold traded with significant volatility with no clear directional bias. However, anticipating some downside on the DXY, Gold could trade higher in the interim. Look for the price to break above the 1839 price level to signal a more sustained move to the upside. Look for Gold to retest the previous swing high 1843, with the key resistance level at the 1850 price level.
Next 24 Hours Bias
Weak Bullish Open / Comment