Last week the Fed opted to pause
its tightening cycle, maintaining interest rates at 5.00-5.25%. The decision
was driven by their intention to accumulate additional economic data before
making further determinations regarding rate hikes. Their goal is to find the
optimal level of policy restraint that can effectively bring inflation down to
their target of 2% without triggering a severe recession.

Up until now, the economic
data in the United States has been encouraging, particularly within the housing
sector. Since the Federal Reserve initiated the process of scaling back its
rate hikes in December 2022, the housing market has exhibited significant
strength. It is possible that this robust performance has contributed to the
recent strength seen in the USD.

NZDUSD Technical Analysis –
Daily Timeframe

On the daily chart, we can see that NZDUSD couldn’t
sustain the breakout above the 0.6182 resistance and
pulled back. The price should now find some support at the red 21 moving average where
the buyers should position for another extension to the upside.

NZDUSD Technical Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that besides the
daily 21 moving average we also have a previous swing high resistance at 0.61
and the 50% Fibonacci retracement level.
The buyers should lean on this support zone with a defined risk below 0.6084
and target the 0.63 handle. The sellers, on the other hand, may want to wait
for the price to break below the 0.6084 to pile in and extend the fall into the
0.5987.

NZDUSD Technical Analysis –
1 hour Timeframe

On the 1 hour chart, we can see that the
sellers can also lean on the trendline for
more shorts where they can also find the red 21 moving average for confluence. The
buyers, on the other hand, may wait for the price to break above the trendline
to pile in and target more higher highs.

Today
we will see the US PMIs and we can expect more downside for the pair if the
data surprises to the upside as the market would price more hikes, conversely
if the data misses expectations we may see more upside as the market would price
in less hikes.

This article was written by FL Contributors at www.forexlive.com.

Headlines:

• France June flash services PMI 48.0 vs 52.0 expected
• Germany June flash services PMI 54.1 vs 56.2 expected
• Eurozone June flash services PMI 52.4 vs 54.5 expected
• UK June flash services PMI 53.7 vs 54.8 expected
• ECB’s de Cos: We will hike rates again in July, not possible to say what comes after that
• Japan finance minister says firmly watching FX moves
• UK May retail sales +0.3% vs -0.2% m/m expected

Markets:

• USD leads, AUD lags on the day
• European equities lower; S&P 500 futures down 0.4%
• US 10-year yields down 6.2 bps to 3.736%
• Gold up 0.3% to $1,918.66
• WTI crude down 1.4% to $68.53
• Bitcoin down 0.3% to $30,079

The risk mood in markets was already leaning towards the softer side earlier today but the sentiment worsened after a rather disappointing set of PMI data from Europe.

In particular, there was a stark drop in French services activity and that alongside softer numbers in Germany is leading the euro area economy to stagnation towards the end of Q2.

The miss on estimates has reignited recession fears in the region and we saw yields fall as a result, with traders getting a little less certain about a September rate hike by the ECB.

EUR/USD fell from 1.0920 to a low of 1.0845 as sellers take charge, with the pair now down 0.8% on the day at around 1.0870. USD/JPY was also briefly dragged down by lower yields to 142.80 but has bounced back to 143.20 as the dollar holds firmer across the board.

Commodity currencies remain the laggard though as risk aversion takes hold with European equities and US futures keeping lower, alongside the bid in bonds after the PMI data.

USD/CAD is up 0.4% to retest the 1.3200 mark while AUD/USD is keeping 1% down on the day at around 0.6690, not much changed after the drop in Asia trading.

It’s now over to Wall Street to see if the risk-off wave will continue or if tech shares can pull off another bounce to wrap up the week.

This article was written by Justin Low at www.forexlive.com.

• Core inflation is more resistant than expected
• We still have ground to cover
• We will raise interest rates again in July
• Not possible to say what we will do afterwards

They have pretty much pre-committed to a rate hike already next month, so there’s no backing down from that. But the PMI data today will certainly increase the debate about a September rate hike, especially if the trend continues into the summer.

This article was written by Justin Low at www.forexlive.com.

A benchmark of excellence in fintech and financial services, the UF AWARDS are some of the most sought-after accolades. Taking this benchmark to the APAC region, the UF AWARDS APAC shine a light of prestige on the most deserving Brokers and B2B market players locally.

Celebrating the highest achievements, growth and top quality standards in this ultra-competitive industry, the UF AWARDS help build trust and raise awareness about the latest developments across all areas of fintech and online trading. The APAC edition of the UF AWARDS saw some of the biggest names in the brokerage and fintech sectors compete in 29 different categories.

Centred on transparency, the voting process was open to the general public. Thousands of votes have been cast, counted and validated, revealing the names of the best Brokers and B2B providers in APAC.

On June 22, fintech and online trading industry leaders prominent in Asia-Pacific convened at Centara Grand & Bangkok Convention Centre in Bangkok’s iconic CentralWorld to take part in the UF AWARDS APAC 2023 ceremony.

Held on the last day of iFX EXPO Asia, the ceremony revealed the winning Brokers and top B2B brands in Asia-Pacific. And the awards go to…

Broker Awards

• Best CFD Broker – APAC: AAAFx
• Most Trusted Broker – APAC: Deriv
• Most Trusted Broker – ASIA: Hantec Markets
• Most Transparent Broker – APAC: FP Markets
• Best Trading Conditions – APAC: FxPro
• Best Trading Experience – APAC: TMGM
• Best IB/Affiliate Programme – APAC: BDSwiss
• Best Forex Spreads – APAC: Deriv
• Best Trade Execution – APAC: FP Markets
• Best Customer Support – APAC: Titan FX
• Best Customer Support – AUSTRALIA: Vantage
• Fastest Growing Broker – APAC: Trading Pro
• Most Reliable Broker – ASIA: Libertex
• Best Broker – ASIA: JustMarkets
• Best Broker – AUSTRALIA: Vantage
• Best Broker – APAC: ATFX

B2B Awards

• Best Trading Platform – APAC: cTrader by Spotware
• Best Social Trading Solution – APAC: ZuluTrade
• Best Copy Trading Platform – APAC: cTrader by Spotware
• Best Fintech AI Solution – APAC: OpixTech
• Best Payment Service Provider – APAC: Worldpay from FIS
• Best MT4 & MT5 CRM Solutions – APAC: Kangaroo IT Solutions
• Best CRM Software Provider – APAC: Techysquad
• Best Mobile Trading App – APAC: cTrader by Spotware
• Most Diversified Liquidity Provider – APAC: X Open Hub
• Best B2B Liquidity Provider – APAC: Finalto
• Best Risk Management Solution – APAC: Centroid Solutions
• Best Connectivity Provider – APAC: oneZero
• Best Bridge Provider – APAC: Centroid Solutions

The UF AWARDS APAC 2023 organiser, Ultimate Fintech, would like to thank all participants and congratulate the deserving winners.

This article was written by FL Contributors at www.forexlive.com.

Last week, the FOMC made
the decision to pause its tightening cycle, keeping rates steady at 5.00-5.25%.
The rationale behind this choice is their desire to gather more economic data
before making further decisions regarding rate hikes. They are striving to
identify the optimal level of policy restraint that can effectively bring
inflation down to their 2% target without triggering a severe recession.

Thus far, the economic data
in the United States has been positive, especially in the housing sector, which
has exhibited considerable strength since the Fed began scaling back its rate
hikes back in December 2022. This may have contributed to some USD strength
seen lately.

AUDUSD Technical Analysis –
Daily Timeframe

On the daily chart, we can see that AUDUSD has
broke out above the key 0.6781 resistance but got smacked
back down from the resistance at the 0.69 handle. The price has now fell into
the red 21 moving average where we
should find some support and the buyers trying to position for another rally.

AUDUSD Technical Analysis –
4 hour Timeframe

On the 4 hour chart, we can see that since breaking
out of the rising channel, AUDUSD just kept on selling off. The moving averages
have crossed to the downside indicating a downtrend on this timeframe and with
the latest lower low we also have a downward trendline. The
sellers should wait for the price to pull back into the trendline to position
for more shorts, while the buyers may want to wait for the price to break above
the trendline to pile in and target a new high.

AUDUSD Technical Analysis –
1 hour Timeframe

On the 1 hour chart, we can see more
closely the possible trading setup for the sellers. In fact, at the 0.6741
level we can find a resistance zone from a previous swing low level, the 50% Fibonacci
retracement level and the trendline. The sellers
should lean on this zone with a defined risk above the trendline and target the
0.6563 support. The buyers, on the other hand, don’t have much to lean on to at
the moment, so the best thing they can do is to wait for the price to break
above the trendline to position for more upside.

Today
we have the US PMIs and it’s likely that we’ll see some USD weakness if the
data misses expectations as the market would price out the July hike, and USD
strength in case the data beats forecasts due to a more hawkish pricing
afterwards.

This article was written by FL Contributors at www.forexlive.com.