In this article, we have covered the highlights of global market news about the AUD/USD, USD/CHF, USD/MXN and USD/JPY.
AUD/USD Price Analysis: RBA’s Lowe spurred rises at 0.6730 inside the bullish channel
For the second day in a row, the AUD/USD remained weak, hitting a new intraday low on Wednesday morning during the early European session at 0.6730. By doing so, the Australian pair pokes the 200-bar Exponential Moving Average in awe of Reserve Bank of Australia (RBA) Governor Philip Lowe’s generated corrective rebound (EMA).
It’s important to note that the recent retreat in the AUD/USD price is supported by the quote’s U-turn from the top line of the channel above and negative MACD indications.
The Australian bears are thus well-positioned to overcome the indicated major EMA support of 0.6730 and pursue the round number of 0.6700.
Bears may find it difficult to overcome a confluence of the bottom line of the ascending trend channel and the 23.6% Fibonacci retracement level of the pair’s decline from mid-February to March 10 at 0.6670.
It is possible that the AUD/USD would go near the YTD low, now at 0.6565, if it falls below 0.6670.
On the other hand, recovery advances might aim for the 50% Fibonacci retracement, or 0.6800, and the top line of the channel above.
USD/CHF is steady at a multi-month low, around 0.9100 ahead of US PMIs and jobs data.
In preparation for Wednesday’s European trading day, USD/CHF fluctuates between 0.9050 and 0.9060 as investors look for more cues to continue the two-day slump at the lowest levels since August 2021. Before the important US jobs and PMI statistics, the Swiss Franc (CHF) pair tracks a corrective rebound in the US Treasury bond rates.
The US 10-year and two-year Treasury bond rates, which illustrate how the bond market is moving, pause around 3.35% and 3.86%, respectively, after declining over the previous five and three days. It’s important to note that the US bond yields were impacted by depressing US job indicators and an earlier lessening aggressive Fed bias.
The hostile US JOLTS Factory Orders and Job Openings for February hurt the US Dollar. Russia’s preference for the Chinese Yuan and the China-Brazil agreement to disregard the US Dollar as an intermediary currency are similar.
The recent hawkish remarks from Loretta Mester, the president of the Federal Reserve Bank of Cleveland, join the cautious atmosphere before the US ISM Services PMI and ADP Employment Change to enable the yields and the US Dollar to stabilize, particularly with off in China.
With this background, yields and the US dollar nurse their wounds as S&P 500 Futures fight for direction around 4,130.
USD/MXN Price Analysis: The Mexican Peso oscillates between crucial levels of 18.20 and 17.97.
Before Wednesday’s European session, USD/MXN fluctuated at 18.13 as traders sought more cues to continue the rebound advances from the previous two days.
Despite this, the Mexican Peso (MXN) pair impressed investors the day before by crossing a two-week falling trend line amid positive MACD signs.
After that, at 18.20, the 50-SMA and many peaks recorded since early March challenge the USD/MXN bulls. The constant RSI casts doubt on the quote’s potential for future appreciation (14).
However, the pair’s continued upward momentum must overcome the 18.20 barrier to persuade bulls, drawing attention to a nine-week-old resistance zone centered around 18.50-55.
On the other hand, 17.97 is highlighted as a difficult nut to crack for the USD/MXN bears by the prior resistance line from March 20 and an upward-sloping support line from early March combined.
The USD/JPY is tracing a corrective rally in yields to hit 132.00 ahead of important US data.
While it displays 131.70 as a quotation going into Wednesday’s European session, USD/JPY is still erratic daily. As a result, the Yen pair follows the most recent stabilization in US Treasury bond rates in the context of cautious markets before the important US Data.
After decreasing for the previous five and three straight days, the rates on US 10-year and 2-year Treasury bonds take a break at roughly 3.35% and 3.86%, respectively. It’s important to note that the US bond yields were impacted by depressing US job indicators and an earlier lessening aggressive Fed bias.
Despite this, US JOLTS Job Openings fell to their lowest levels since May 2021, with a result for February of 9.931M compared to the 10.4M projected and the 10.563M revised earlier. Similarly, US factory orders for February came in at -0.7% MoM, below expectations of -0.5%, and were downwardly revised from -2.1% before.
Jibun Bank Manufacturing PMI for March in Japan increased from 54.2 to 55.0.
Russia’s recent preference for the Chinese yuan and the China-Brazil agreement to disregard the US dollar as an intermediary currency pull down the US dollar.
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