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4 Global Market Updates- 21 February, 2023

by Elena Martin   ·  February 21, 2023  

4 Global Market Updates- 21 February, 2023

by Elena Martin   ·  February 21, 2023  
In this article, we have covered the highlights of global market news about the AUD/USD, EUR/USD, USD/CAD and AUD/JPY.

Despite positive Australian PMI data, AUD/USD falls near 0.6900. RBA Minutes they watched.

AUD/USD declines week-start optimism even as Australian activity statistics for February firmed early Tuesday. Full markets and geopolitical concerns may boost pullbacks.

AUD/daily USD’s chart indicates that it recovered from a directionless 200 SMA but remains below a slightly bearish 20 SMA. Technical indicators rise but remain negative, while the 100 SMA rises far below the present level, restricting the bearish argument. To entice bulls, the pair must break over 0.7010, a powerful static resistance level.

Buyers are more optimistic about AUD/USD. The pair is rising above its 20 SMA. The Momentum indicator rises over 100, and the Relative Strength Index stabilizes at 53. The 100 SMA accelerates south over the present level and a flat 200 SMA around 0.6920.

Support: 0.6865 0.6830 0.6795

Resistance: 0.6925 0.6960 0.7000

Hawkish EUR/USD ECB discussions and good EU data tempt bulls at 1.0700, PMIs in focus.

  • EUR/USD recovers week-start losses but is range-bound.
  • ECB’s Rehn indicates rate rises beyond March, and EU Consumer Confidence increased in February.
  • US Dollar falls due to holidays, Fed remarks, and Treasury bond rate drop.
  • Provisional February EU, German, and American PMIs will provide direction.

EUR/USD climbs to 1.0690 early in Tuesday’s lethargic Asian session, struggling to recover from week-start losses. Meanwhile, the central currency pair remained quiet inside a tiny trading range ahead of the February PMIs.

EUR

The ECB official’s hawkish views may have boosted the quotation. According to Reuters, ECB governing council member and Finnish central bank Head Olli Rehn, “ECB should maintain rising interest rates beyond March and the rate peak, which should be kept to for some time, might be achieved during the summer.” “With inflation so high, more rate rises beyond March appear plausible, rational, and appropriate,” Rehn told Germany’s Börsen-Zeitung.

Technical Analysis
EUR/USD stays bearish until it crosses a three-month-old support line at 1.0725 at press time.

While investors anticipate Canadian Inflation and Retail Sales data, USD/CAD fluctuates around 1.3450.

  • USD/CAD is rangebound before Canada’s CPI and Retail Sales reports.
  • Despite rising geopolitical tensions, markets are calm.
  • Consumer spending may prompt the BoC to rethink monetary policy.
  • Early Tokyo session USD/CAD is rangebound at 1.3450. While investors await Canada’s CPI and Retail Sales figures, the Loonie has stalled.

Inflation and Retail Sales figures will keep the Canadian Dollar moving. The consensus expects Canada’s core CPI to rise to 5.5% from 5.4%. Annual headline inflation is 6.1%, down from 6.3%.

After raising interest rates to 4.5%, the BoC paused policy tightening. BoC Governor Tiff Macklem thinks the monetary policy is tight enough to contain inflation.

In addition to inflation, monthly Retail Sales are expected to rise 0.2% from 0.1% in the previous quarter. Consumer spending is rising despite increasing BoC interest rates. More consumer spending might increase wholesale inflation, forcing the BoC to rethink its monetary policy.

AUD/JPY Price Analysis: Sideways around the previous week’s highs, buyers aiming for 93.00

  • AUD/JPY breaks a downslope resistance trendline at 92.50, targeting 93.00.
  • AUD/JPY traders would enjoy consolidation at last week’s highs in the 92.00-93.40 range.

Analysis: After 93.50, it might climb to 95.00.

Despite the market mood becoming sour as US equities futures went red, save for the Dow Jones, the Australian dollar (AUD) recovered against the Japanese Yen (JPY). AUD/JPY is up 0.63% at 92.82 after the North American session.

AUD/JPY is neutral-biased on the daily chart, trading in the 92.00-93.40 area around last week’s highs. AUD/JPY price movement moved away from the daily EMAs, indicating an intensifying rally. RSI rose in positive territory. Hence, the AUD/JPY may touch 93.00, 93.84, and 94.00.

AUD/JPY Daily chart

usd
Image Credit: Source

Please click here for the Market News Updates from 16 February, 2023.