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4 Global Market Updates- 8 March, 2023

by Elena Martin   ·  March 8, 2023   ·  

4 Global Market Updates- 8 March, 2023

by Elena Martin   ·  March 8, 2023   ·  
In this article, we have covered the highlights of global market news about the USD/MXN, USD/CAD, USD/JPY and AUD/USD.

USD/MXN Price Analysis: A recovery below 18.16 remains difficult.

In the lead-up to Wednesday’s European trading day, USD/MXN falls from its intraday high, breaking a two-day advance. It now trades at 18.10. Hence, the Mexican Peso (MXN) pair loses ground on the early-week recovery from its lowest points since April 2018.

The previous day, after clearing the horizontal resistance region centered around 18.03-07 for one week, USD/MXN increased to its highest level in over a month. The recovery movements also go above a trend line that has been trending downward since February 2006.

Nevertheless, the 50-bar Exponential Moving Average (EMA) and the one-month-long declining resistance line’s convergence at 18.15–16 at the time of press brought back the USD/MXN bears.

However, the quote’s immediate downside is constrained by the last support line from early February, at 18.10, before the resistance zone that has now turned into support around 18.07–03.

The 18.00 round number might prompt the USD/MXN bears before being led to the recently flashing multi-month low of 17.94.

On the other hand, for the USD/MXN bulls to enter, a clean upward breach of the 18.15-16 resistance confluence is required.

USD/CAD reaches a four-month high of over 1.3770 ahead of US employment data and Bank of Canada policy.

In the Asian session, USD/CAD hit a new four-month high of 1.3774. After Tuesday’s aggressive comments by Federal Reserve (Fed) chief Jerome Powell, the loonie asset saw a surge in purchasing activity. The major has maintained its upward ride as Federal Reserve Powell’s hawkish statements’ influence has yet to be dismissed.


S&P500 futures have declined after an incredibly shaky rebound in the Asian session. This reflects a solid risk-off sentiment as market investors profited on the recovery trend to open new short positions. The US Dollar Index (DXY) is gaining momentum and has re-expanded over its three-month high of 105.80.

US Treasury yields have gained excellent traction due to Powell’s affirmation of higher rates. The yield on US Treasury bonds with a 10-year maturity has recovered to 4.0%. Increasing US rates can result in a big sell-off in growth and tech firms, as their future cash flows would be discounted at a greater rate.

USD/JPY Price Analysis: The 200-day moving average prods bulls to a three-month high, despite an overbought RSI.

After a turbulent close to Tuesday’s trading session, USD/JPY buyers are in control even though markets are quiet early on Wednesday. The Yen pair then moves down around the 137.40-50 regions after reaching its best levels since mid-December 2022.

A successful upward breach of the 100-DMA barrier may have triggered the recent rise in the Yen pair. Notwithstanding the overbought readings of the RSI, the 200-DMA level around 137.45–50 limits the quote’s immediate rise (14).

Even if the USD/JPY bulls successfully cross the mentioned meaningful, moving average, a line of resistance with an upward slope from early February approaching 138.35 may be a barrier to the pair’s future gains.

The 50% Fibonacci retracement level of its decline from October 2022 to January 2023, around 139.60, may serve as an additional upward filter if the Yen pair bulls disregard the RSI circumstances and maintain control beyond the previously mentioned resistance line.

Furthermore, the 38.2% Fibonacci retracement level and the 100-DMA, respectively around 136.70 and 136.25, restrain short-term USD/JPY fall.

The AUD/USD is expected to fall below 0.6570 due to RBA Lowe’s less hawkish comments.

The Federal Reserve (Fed) head Jerome Powell’s exceptionally aggressive comments sparked a perpendicular downward move in the AUD/USD pair, now showing signs of volatility contraction. Despite a one-time drop in Australian inflation, the Aussie asset trades sideways below 0.6600. It is projected to show more weakening amid less hawkish remarks from Reserve Bank of Australia (RBA) Governor Philip Lowe.


While the risk profile continues deteriorating, S&P500 futures have given up their modest losses from the early Asian session. The risk-aversion theme has been sparked by growing worries that the United States would enter a recession. The US Dollar Index (DXY) has continued its bullish trip and reached a new three-month high of over 105.70. The 4.0% barrier has been retaken by the alpha produced on US Treasury bonds with a 10-year maturity.

The Australian Dollar is affected by Philip Lowe’s comments as governor of the RBA. “The central bank is closer to ending its aggressive cycle of rate hikes since the policy is now in the restrictive region, and there is evidence the economy was reacting,” said Lowe of the RBA. The monthly Consumer Price Index (CPI) decrease in January has given RBA’s Lowe more confidence in his assessment.

Please click here for the Market News Updates from 6 March, 2023.

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