This article was written by Justin Low at www.forexlive.com.
Kategorie-Archiv: Forex News
<p>Headlines:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/dollar-turns-lower-as-risk-gains-pick-up-20230403/“>Dollar turns lower as risk gains pick up</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/oil-buoyed-by-weekend-surprise-but-the-technicals-remain-challenging-20230403/“>Oil buoyed by weekend surprise but the technicals remain challenging</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/opec-jmmc-reaffirms-that-voluntary-oil-output-cuts-will-be-166-million-bpd-20230403/“>OPEC+ JMMC reaffirms that voluntary oil output cuts will be 1.66 million bpd</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/what-are-markets-expecting-ahead-of-the-rba-policy-decision-tomorrow-20230403/“>What are markets expecting ahead of the RBA policy decision tomorrow?</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/eurozone-march-final-manufacturing-pmi-473-vs-471-prelim-20230403/“>Eurozone March final manufacturing PMI 47.3 vs 47.1 prelim</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/uk-march-final-manufacturing-pmi-479-vs-480-prelim-20230403/“>UK March final manufacturing PMI 47.9 vs 48.0 prelim</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/switzerland-march-cpi-29-vs-32-yy-expected-20230403/“>Switzerland March CPI +2.9% vs +3.2% y/y expected</a></li></ul><p>Markets:</p><ul><li>AUD leads, JPY lags on the day</li><li>European equities mostly higher; S&P 500 futures down 0.1%</li><li>US 10-year yields up 1 bps to 3.50%</li><li>Gold up 0.4% to $1,975.93</li><li>WTI crude up 6.5% to $80.66</li><li>Bitcoin down 0.5% to $28,243</li></ul><p style=““ class=“text-align-justify“>The session started off with the dollar in a decent spot, holding gains across the board carried over from Asia. But as bond yields come down a little and equities pick up a touch, we are seeing the dollar lose ground and stumble lower now.</p><p style=““ class=“text-align-justify“>Tech stocks are the laggard and that is leaving a bit of a balancing act ahead of the Wall Street open later. Nasdaq futures are lower, putting a bit of a drag on S&P 500 futures, but Dow futures are modestly higher on the day.</p><p style=““ class=“text-align-justify“>The big story in markets though came from the weekend, in which we got a surprise announcement from the Gulf States – saying that they will cut oil production significantly. That led to a rip higher in oil prices, with WTI crude opening with a gap above $80 today.</p><p style=““ class=“text-align-justify“>There was a brief retreat below the key level but as we look towards US trading now, prices are heating up again to $80.60 levels roughly now.</p><p style=““ class=“text-align-justify“>In FX, the dollar gave up gains on the session with EUR/USD running up from 1.0790 to 1.0875 while USD/JPY dropped from 133.75 to just below 133.00 currently amid a retreat from the highs for bond yields.</p><p style=““ class=“text-align-justify“>USD/CAD is a decent gainer, moving down from 1.3530 earlier in the session to 1.3450 now as oil gains gather pace.</p><p style=““ class=“text-align-justify“>But it is the aussie that is leading the charge, with AUD/USD now up over 1% to 0.6760 from around 0.6660 earlier as traders build on the positive risk momentum and also some balanced thinking ahead of the RBA tomorrow.</p>
Dollar turns lower as risk gains pick up
<p style=““ class=“text-align-justify“>Dow futures are leading the way today, up 0.4%, and that is seeing S&P 500 futures having to balance things out with tech sentiment lagging to start the week. Nasdaq futures are down 0.6% but outside of tech, things are a little more optimistic with European indices also mostly slightly higher on the day.</p><p style=““ class=“text-align-justify“>In FX, the dollar is turning lower with the aussie leading gains as AUD/USD climbs up by 0.8% to 0.6735 at the moment. It has been a steady climb higher during European trading and that is a testament to the dollar’s sluggishness during the session as well:</p><p style=““ class=“text-align-justify“>Bond yields have also come off now with 2-year Treasury yields up by just a little over 1 bps to 4.073% while 10-year yields are flat at 3.492%, paring their earlier advance. That has seen USD/JPY also come off the boil in a drop from around 133.60 earlier to 133.00 at the moment.</p><p style=““ class=“text-align-justify“>Elsewhere, EUR/USD is up 0.2% to 1.0860 from around 1.0790 in the handover from Asia to Europe while GBP/USD is up 0.3% to 1.2370 from around 1.2275 earlier in the day.</p><p style=““ class=“text-align-justify“>USD/CAD is down 0.4% to 1.3460 again after running up into a test of its 100-day moving average at 1.3520 earlier in the session with the loonie continuing to be buoyed by higher oil prices.</p>
This article was written by Justin Low at www.forexlive.com.
OPEC+ JMMC reaffirms that voluntary oil output cuts will be 1.66 million bpd
<p style=““ class=“text-align-justify“>As mentioned earlier, it just reaffirms the totality of the move from the weekend <a target=“_blank“ href=“https://www.forexlive.com/news/saudi-arabia-and-other-gulf-states-announce-1-million-barrels-per-day-in-oil-output-cuts-20230402/“ target=“_blank“ rel=“follow“>here</a> and Russia’s own 500k bpd cut.</p>
This article was written by Justin Low at www.forexlive.com.
Russell 2000 Technical Analysis
<p class=“MsoNormal“>On the daily chart below for the Russell 2000, we can
see that after finding a strong <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a> at the 1731 level, the price has
rallied all the way back to the top of the range at 1800 and it’s now threatening
a major breakout. </p><p class=“MsoNormal“>The <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
averages</a> are still crossed to the downside, but a break above the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a> should make them cross to the
upside confirming the new bullish trend. This is where the sellers should pile
in with defined risk above the trendline and target the break below the 1731
support. </p><p class=“MsoNormal“>Russell 2000 technical analysis</p><p class=“MsoNormal“>On the 4
hour chart below, we can see that the price is probing out of the range as the
price is trading above the top of the range. The buyers will now have lots of
strong barriers like the trendline and the 50% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> level. </p><p class=“MsoNormal“>They will
need a clear break above all of those resistances to invalidate the bearish
setup and start targeting the 1900 level. The sellers, on the other hand, are
likely to pile in here as the risk to reward ratio looks very good for them. </p><p class=“MsoNormal“>On the 1 hour chart, we can see
that the price is still trading within a rising channel. More conservative
sellers may want to wait for the price to break below the lower bound of the
channel before considering new shorts, while the aggressive ones should be
piling in here. </p><p class=“MsoNormal“>The buyers will need a break
above the upper bound of the channel, the trendline and the 50% fib level to
get the conviction to target new higher highs. </p>
see that after finding a strong <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a> at the 1731 level, the price has
rallied all the way back to the top of the range at 1800 and it’s now threatening
a major breakout. </p><p class=“MsoNormal“>The <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
averages</a> are still crossed to the downside, but a break above the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a> should make them cross to the
upside confirming the new bullish trend. This is where the sellers should pile
in with defined risk above the trendline and target the break below the 1731
support. </p><p class=“MsoNormal“>Russell 2000 technical analysis</p><p class=“MsoNormal“>On the 4
hour chart below, we can see that the price is probing out of the range as the
price is trading above the top of the range. The buyers will now have lots of
strong barriers like the trendline and the 50% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> level. </p><p class=“MsoNormal“>They will
need a clear break above all of those resistances to invalidate the bearish
setup and start targeting the 1900 level. The sellers, on the other hand, are
likely to pile in here as the risk to reward ratio looks very good for them. </p><p class=“MsoNormal“>On the 1 hour chart, we can see
that the price is still trading within a rising channel. More conservative
sellers may want to wait for the price to break below the lower bound of the
channel before considering new shorts, while the aggressive ones should be
piling in here. </p><p class=“MsoNormal“>The buyers will need a break
above the upper bound of the channel, the trendline and the 50% fib level to
get the conviction to target new higher highs. </p>
This article was written by ForexLive at www.forexlive.com.
OPEC+ JMMC meeting reportedly begins
<p style=““ class=“text-align-justify“>The meeting is likely to just reaffirm and back the surprise move by the Gulf States over the weekend to cut oil production, as seen <a target=“_blank“ href=“https://www.forexlive.com/news/saudi-arabia-and-other-gulf-states-announce-1-million-barrels-per-day-in-oil-output-cuts-20230402/“ target=“_blank“ rel=“follow“>here</a>. As for the oil market reaction, I shared some thoughts here:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/oil-buoyed-by-weekend-surprise-but-the-technicals-remain-challenging-20230403/“ target=“_blank“ rel=“follow“>Oil buoyed by weekend surprise but the technicals remain challenging</a></li></ul>
This article was written by Justin Low at www.forexlive.com.
Week Ahead Preview: Highlights include NFP, ISM, RBA , RBNZ, BoJ Tankan, BoC BOS
<ul><li>MON: Japanese Tankan Survey (Q1),
Caixin Manufacturing PMI Final (Mar), EZ/UK/US Final Manufacturing PMI (Mar),
US ISM Manufacturing PMI (Mar).</li><li>TUE: RBA Announcement, South Korean
CPI (Mar), US Durable Goods R (Feb).</li><li>WED: RBNZ Announcement; Hong Kong
Market Holiday, EZ/UK/US Final Services and Composite PMI (Mar), US ADP
Employment (Mar), US ISM Services PMI (Mar).</li><li>THU: Chinese Caixin Services PMI
(Mar), Canadian Ivey PMI (Mar), Australian Trade Balance (Feb).</li><li>FRI: Good Friday Global Market
Holiday, US Jobs Report (Mar).</li></ul><p class=“MsoNormal“>NOTE:
Previews are listed in day-order</p><p class=“MsoNormal“>JMMC (Mon): </p><p class=“MsoNormal“>The OPEC+
Joint Ministerial Monitoring Committee (JMMC) is set to discuss current market
conditions and the outlook on Monday. Analysts anticipate this meeting to be
relatively uneventful. While the JMMC is not a decision-making body, it
typically offers recommendations to OPEC+ regarding policy. This meeting takes
place amidst oil market volatility, as factors such as geopolitics, supply
risks, Russian price caps, sanctions, central bank tightening, and a
mini-banking crisis contribute to instability. In mid-March, reports indicated
that OPEC+ delegates remained encouraged by Asian demand. They largely
attributed the sell-off at the time to speculative money exiting the oil
derivatives market, rather than weakness in the physical market, according to
Bloomberg. Officials also anticipate that the derivatives market will
experience turbulence for an extended period. Subsequent reports suggest that
OPEC+ is likely to maintain its 2mln BPD production cuts until the end of 2023,
despite the price drop, as cited by three OPEC+ delegates in a Reuters article.
It is also worth noting that in mid-March, the Saudi Energy Minister and Russian
Deputy PM discussed the global oil market and OPEC+ efforts to enhance
stability and balance, as reported by Saudi media. Both nations reaffirmed
their commitment to the OPEC+ production cut decision. Analysts at ING believe
that “the group will recommend that OPEC+ adhere to the current supply cuts.
The group would have found reassurance in the market’s apparent stabilization
following the turmoil experienced in financial markets throughout March.”</p><p class=“MsoNormal“>BoJ Tankan
Survey (Mon): </p><p class=“MsoNormal“>The BoJ’s
key quarterly Tankan survey is expected to show declining business confidence
among large manufacturers. Estimates for the Q1 survey are mixed across
different industries. Large industry capital expenditure (CAPEX) is expected to
increase by 4.9% (prev. +19.2%), while small industry CAPEX is anticipated to
decrease by 9.0% (prev. +3.8%). The outlook index for big manufacturing is
projected to slightly drop to 4 (prev. 6), and the large manufacturers’ index
is predicted to decrease to 3 (prev. 7). The large non-manufacturers diffusion
index is expected to stand at 16 (prev. 11), while the large non-manufacturers
index is projected to be at 20 (prev. 19). For small manufacturers, the
diffusion index and the manufacturing index are anticipated to be -6 (prev. -5)
and -6 (prev. -2), respectively. Lastly, the small non-manufacturers diffusion
index is expected at 1 (prev. -1), and the small non-manufacturing index is
predicted to tick slightly higher to 7 (prev. 6). The Reuters Tankan, which
closely tracks the central bank’s quarterly survey, revealed that large
Japanese manufacturers remained pessimistic for the third month in a row in
March due to global economic slowdown concerns. However, the service-sector
firms’ mood improved, suggesting a domestic demand-driven recovery. These mixed
results emphasize the fragility of Japan’s economy as exports slow and private
consumption lacks momentum, according to some desks. Over the next three
months, the Reuters Tankan index is expected to rebound, but the service-sector
index is predicted to drop. Reuters’ Tankan canvassed 493 large companies with
a capital base of JPY 1bln employing 100 or more people.</p><p class=“MsoNormal“>US ISM Manufacturing
(Mon), ISM Services PMI (Wed): </p><p class=“MsoNormal“>The
Manufacturing ISM is seen easing to 47.1 in March vs 47.7 in February. As a basis
for comparison, the S&P Global PMI series reported an improvement in
manufacturing conditions, with the index rising from 47.3 to 49.3. New orders
have now fallen for six straight months in manufacturing however. “Unless
demand improves, there seems little scope for production growth to be sustained
at current levels,” S&P said. It also said that the manufacturing upside
was mainly a reflection of improved supply chains allowing firms to fulfil
backlogs of orders. The Services ISM is expected to moderate to 54.6 in March
vs 55.1 in February; S&P Global’s gauge for the month saw upside in the
services sector, which rose to 53.8 from 50.6. Within the release, there will
be attention on the price components after S&P said the inflationary upturn
was now being led by stronger services sector price increases, linked largely
to faster wage growth. Overall, S&P said that March witnessed an
encouraging resurgence of economic growth, with the business surveys indicating
an acceleration of output to the fastest pace since May of last year, and was
implying annualised GDP growth approaching 2%. That said, the upturn is uneven,
and largely driven by the services sector.</p><p class=“MsoNormal“>BoC Business
Outlook Survey (Mon): </p><p class=“MsoNormal“>There
will likely be less attention on the BOS this quarter, given the BoC has
already indicated that it expects to hold the policy rate at its current level,
conditional on economic developments evolving in line with the MPR forecasts.
That said, there will be attention on any commentary around prices, given the
Bank has left itself scope to resume policy tightening if it was needed to
return inflation to the 2% target.</p><p class=“MsoNormal“>EU Trip
To China (Tue): </p><p class=“MsoNormal“>European
Commission President von der Leyen (VdL) and French President Macron are poised
to travel to China on April 4th. The meeting comes soon after Chinese President
Xi’s three-day visit to Moscow, in which he met with Russian President Putin
and the two countries further expanded ties in several sectors, including
military strategic communication and coordination. Furthermore, SCMP sources
suggested that China’s Commerce Minister Wang Wentao is set to visit Brussels
in April, when he will likely look to steady “turbulent” China-EU relations,
according to SCMP. European Commission President VdL outlined the EU’s new
approach to China in her speech on March 30th. The new strategy aims to
safeguard the bloc’s interests, values, and citizens while addressing concerns
over China’s growing proximity to Russia. VdL outlined three main pillars:
bolstering economic security, acting more assertively, and selectively
cooperating with China, and emphasised the need for a new EU economic security
strategy and urged the bolder and faster use of existing tools, including the
Foreign Subsidies Regulation and the new anti-coercion instrument. She also
proposed developing new defensive tools to screen exports of dual-use
technology to systemic rivals’ like China, and reassessing the stalled EU-China
Comprehensive Agreement on Investment. The European Commission President also
stressed that the bloc’s approach is not about decoupling from China, but
rather reducing risks and maintaining cooperation in specific areas. Meanwhile,
the FT reported that the “new defensive tools” will be used to monitor
technology, including quantum computing, robotics, artificial intelligence, and
biotech. Analysts at RANE say the announcement demonstrates Brussels’ intention
to take a firmer stance on China while preserving economic and diplomatic
relations, as export controls are currently enforced at the member-state level.
On that note, it’s worth noting that Japan announced chip-making equipment
restrictive measures as part of a three-way agreement with the US and the
Netherlands. Japanese officials said the scope of restrictions went further
than the US measures imposed in 2022. Chip-equipment exporters would need
licenses for all regions. The measures will affect a broader range of companies
than previously expected, according to the FT. As always, a joint presser could
be perceived by markets as bilaterally constructive. </p><p class=“MsoNormal“>Chinese Caixin
PMIs (Thu): </p><p class=“MsoNormal“>The BoJ’s
key quarterly Tankan survey is expected to show declining business confidence
among large manufacturers. Estimates for the Q1 survey are mixed across
different industries. Large industry capital expenditure (CAPEX) is expected to
increase by 4.9% (prev. +19.2%), while small industry CAPEX is anticipated to
decrease by 9.0% (prev. +3.8%). The outlook index for big manufacturing is
projected to slightly drop to 4 (prev. 6), and the large manufacturers’ index
is predicted to decrease to 3 (prev. 7). The large non-manufacturers diffusion
index is expected to stand at 16 (prev. 11), while the large non-manufacturers
index is projected to be at 20 (prev. 19). For small manufacturers, the
diffusion index and the manufacturing index are anticipated to be -6 (prev. -5)
and -6 (prev. -2), respectively. Lastly, the small non-manufacturers diffusion
index is expected at 1 (prev. -1), and the small non-manufacturing index is
predicted to tick slightly higher to 7 (prev. 6). The Reuters Tankan, which
closely tracks the central bank’s quarterly survey, revealed that large
Japanese manufacturers remained pessimistic for the third month in a row in
March due to global economic slowdown concerns. However, the service-sector
firms’ mood improved, suggesting a domestic demand-driven recovery. These mixed
results emphasize the fragility of Japan’s economy as exports slow and private
consumption lacks momentum, according to some desks. Over the next three
months, the Reuters Tankan index is expected to rebound, but the service-sector
index is predicted to drop. Reuters’ Tankan canvassed 493 large companies with
a capital base of JPY 1bln employing 100 or more people.</p><p class=“MsoNormal“>RBA Announcement
(Tue): </p><p class=“MsoNormal“>The RBA
will conduct its policy April meeting next week and there are mixed views on
whether the central bank will continue hiking rates or pause, with a Reuters
poll showing 14 out of 27 economists forecast the RBA to hike the Cash Rate by
25bps to 3.85% and 13 expecting a pause, while money markets are more decisive
and are pricing an 87% probability for a pause. As a reminder, the RBA raised
rates by 25bps at the last meeting in March which was widely expected and the
central bank’s 10th consecutive rate increase, while it noted that the Board
remains resolute in its determination to return inflation to target and expects
further tightening of monetary policy will be needed, which was a slight tweak from
its previous guidance that the Board expects further increases in interest
rates will be needed. Furthermore, the RBA stated that monthly CPI suggests
inflation seems to have peaked and in assessing when and how much further
interest rates need to increase, the Board will be paying close attention to
developments in the global economy, trends in household spending and the
outlook for inflation and the labour market. The rhetoric from the central bank
was less hawkish than previous, but still pointed to further tightening and
Governor Lowe stated that they are closer to the point where it will be
appropriate to pause with the timing to be determined by the data and
assessment of the outlook, while he kept options open for the upcoming meeting
as he noted that they could pause if that’s what the data suggests, but if it
suggests keep going, then they will do that and have a completely open mind at
Board meetings. This places greater emphasis on the data, although the latest
releases have been mixed as Employment rebounded in February following two
months of contraction and the Unemployment Rate fell to 3.5% vs. Exp. 3.6%
(Prev. 3.7%), while monthly CPI in February was softer than expected at 6.8% vs
Exp. 7.1% (Prev. 7.4%) and recent PMI figures have slipped into contractionary
territory. In addition, the recent turmoil in the banking industry and
contagion fears add to the case for a pause and have prompted an adjustment of
expectations with Westpac now forecasting the RBA to keep rates unchanged at
the upcoming meeting and also lowering its peak rate forecast by 25bps to
3.85%.</p><p class=“MsoNormal“>RBNZ Announcement
(Wed): </p><p class=“MsoNormal“>The RBNZ
is expected to continue hiking rates at its meeting next week in an effort to
curb inflation, albeit at a less aggressive pace than previously with money
markets pricing a 97% chance for the OCR to be lifted by 25bps to 5.00% and
only a 3% probability for a 50bps increase. As a reminder, the RBNZ raised
rates by 50bps at its prior meeting, as widely expected, while the central bank
remained hawkish in which it signalled further rate hikes to return inflation
to target and noted that although there were early signs of price pressures
easing, core consumer inflation remained too high and the Committee agreed it
must continue to raise the OCR to fulfil its remit. Furthermore, the RBNZ
stated that the options it considered were either a 50bp or 75bp increase at
that meeting and it also maintained the view for rates to peak at 5.50%, but
upped its CPI forecast for March 2024 to 4.2% from 3.8%. The rhetoric from the
central bank since that meeting has remained hawkish as Assistant Governor Silk
stated that they are not contemplating a pause in tightening and all rate hike
options are on the table for the April meeting with the RBNZ to do all it takes
to control inflation, while Chief Economist Conway said inflation is high and
widespread because strong demand outstripped supply with the central bank
incredibly determined to get inflation and inflation expectations back to
target. Nonetheless, markets are pricing a less aggressive hike at the upcoming
meeting given the recent deterioration in data including GDP for Q4 which
showed a wider-than-expected contraction Q/Q, at -0.6% vs. Exp. -0.2% (Prev.
2.0%, Rev. 1.7%) and Y/Y growth at 2.2% vs. Exp. 3.3% (Prev. 6.4%), while
Retail Sales Volumes Q/Q also shrank, by 0.6% (Prev. 0.4%, Rev. 0.6%). The weak
data releases have prompted an adjustment in expectations and the recent global
banking turmoil has also added to the case for a downshift in gears with ASB
anticipating the RBNZ to hike by just 25bps in April and Westpac now
forecasting the OCR to peak at 5.00%.</p><p class=“MsoNormal“>RBI Announcement
(Thu): </p><p class=“MsoNormal“>The RBI
is expected to hike rates again when it concludes its 3-day policy meeting next
week, with 49 out of 62 economists surveyed by Reuters forecasting the Bank to
raise the Repurchase Rate by 25bps to 6.75%, while the majority of economists
then expect the central bank to pause after this meeting through to the end of
the year. As a reminder, the RBI hiked rates by 25bps at the last meeting via a
4-2 vote in which MPC member Goyal joined prior dissenter Varma in voting
against the rate increase and both continued to oppose the MPC’s decision to
keep the policy stance remaining focused on the withdrawal of accommodation,
which was also made through a 4-2 vote. The rhetoric from RBI Governor Das
remained hawkish as he noted that further calibrated monetary policy action is
warranted and the situation remains fluid and uncertain, while he added that
the stickiness of core inflation is a matter of concern and they need to see a
decisive fall in inflation, but commented more recently that the Indian economy
remains resilient and the worst of the inflation is behind them. Nonetheless,
inflation returned to above the RBI’s 2%-6% tolerance range for January and
February with the most recent CPI reading at 6.44% vs. Exp. 6.35% (Prev.
6.52%), which supports the case for a continuation of the RBI’s rate increases.
However, given the previous composition of votes, it would only need one
additional vote for a pause as long as that vote was from RBI Governor Das who
has the casting vote in evenly split decisions, while State Bank of India
Research are among those in the minority calling for a pause citing concerns of
a material slowdown in the affordable housing loan market and financial
stability concerns.</p><p class=“MsoNormal“>Australian
Trade Balance (Thu): </p><p class=“MsoNormal“>The Trade
Balance for February is expected to narrow to a surplus of USD 11bln following
last month’s surplus of USD 11.688mln. Analysts at Westpac forecast a wider
surplus of USD 12.6bln driven by an “expected pull-back in imports.” The desk
argues that in January, the import of transport goods increased by 29% due to
shipments arriving before Lunar New Year, but a partial reversal is expected in
February. Export earnings are projected to rise by 0.3%, driven by services
exports, which continue to grow after the national border reopened in the first
half of 2022. Goods exports are expected to remain stable in terms of both
volume and prices, Westpac says.</p><p class=“MsoNormal“>US Jobs
Report (Fri): </p><p class=“MsoNormal“>The
consensus looks for 240k nonfarm payrolls to be added in March, with the
unemployment rate seen unchanged at 3.6%. A headline vs consensus would be
lower than the prior, as well as recent trend rates (3-month average 351k,
6-month 336k, 12-month 362k), and would follow two months of upside surprises.
Average earnings are seen growing 0.3% M/M, a touch quicker than the +0.2% in
February, but may drag the annual measure down to 4.3% Y/Y from 4.6%. Average
workweek hours are expected to be unchanged at 34.5hrs. It is worth noting that
the data covers the period prior to the recent regional bank crisis; even so,
analysts suggest that the banking issues are likely to have a limited impact on
US labour demand more broadly. S&P Global PMI data contains employment
sub-indices, and these improved in the month for the services sector, but pared
back slightly in the manufacturing sector. Weekly jobless claims data that
coincide with the establishment survey window declined, remaining sub-200k,
highlighting ongoing tightness in the labour market.</p><p class=“MsoNormal“>For more
research like this check out Newsquawk’s <a target=“_blank“ href=“https://newsquawk.com/daily/article/?id=2933-week-ahead-preview-highlights-include-nfp-ism-rba-rbnz-boj-tankan-boc-bos&utm_source=forexlive&utm_medium=research&utm_campaign=partner-post&utm_content=weekly“>live
squawk box</a> for 7 days free.</p>
Caixin Manufacturing PMI Final (Mar), EZ/UK/US Final Manufacturing PMI (Mar),
US ISM Manufacturing PMI (Mar).</li><li>TUE: RBA Announcement, South Korean
CPI (Mar), US Durable Goods R (Feb).</li><li>WED: RBNZ Announcement; Hong Kong
Market Holiday, EZ/UK/US Final Services and Composite PMI (Mar), US ADP
Employment (Mar), US ISM Services PMI (Mar).</li><li>THU: Chinese Caixin Services PMI
(Mar), Canadian Ivey PMI (Mar), Australian Trade Balance (Feb).</li><li>FRI: Good Friday Global Market
Holiday, US Jobs Report (Mar).</li></ul><p class=“MsoNormal“>NOTE:
Previews are listed in day-order</p><p class=“MsoNormal“>JMMC (Mon): </p><p class=“MsoNormal“>The OPEC+
Joint Ministerial Monitoring Committee (JMMC) is set to discuss current market
conditions and the outlook on Monday. Analysts anticipate this meeting to be
relatively uneventful. While the JMMC is not a decision-making body, it
typically offers recommendations to OPEC+ regarding policy. This meeting takes
place amidst oil market volatility, as factors such as geopolitics, supply
risks, Russian price caps, sanctions, central bank tightening, and a
mini-banking crisis contribute to instability. In mid-March, reports indicated
that OPEC+ delegates remained encouraged by Asian demand. They largely
attributed the sell-off at the time to speculative money exiting the oil
derivatives market, rather than weakness in the physical market, according to
Bloomberg. Officials also anticipate that the derivatives market will
experience turbulence for an extended period. Subsequent reports suggest that
OPEC+ is likely to maintain its 2mln BPD production cuts until the end of 2023,
despite the price drop, as cited by three OPEC+ delegates in a Reuters article.
It is also worth noting that in mid-March, the Saudi Energy Minister and Russian
Deputy PM discussed the global oil market and OPEC+ efforts to enhance
stability and balance, as reported by Saudi media. Both nations reaffirmed
their commitment to the OPEC+ production cut decision. Analysts at ING believe
that “the group will recommend that OPEC+ adhere to the current supply cuts.
The group would have found reassurance in the market’s apparent stabilization
following the turmoil experienced in financial markets throughout March.”</p><p class=“MsoNormal“>BoJ Tankan
Survey (Mon): </p><p class=“MsoNormal“>The BoJ’s
key quarterly Tankan survey is expected to show declining business confidence
among large manufacturers. Estimates for the Q1 survey are mixed across
different industries. Large industry capital expenditure (CAPEX) is expected to
increase by 4.9% (prev. +19.2%), while small industry CAPEX is anticipated to
decrease by 9.0% (prev. +3.8%). The outlook index for big manufacturing is
projected to slightly drop to 4 (prev. 6), and the large manufacturers’ index
is predicted to decrease to 3 (prev. 7). The large non-manufacturers diffusion
index is expected to stand at 16 (prev. 11), while the large non-manufacturers
index is projected to be at 20 (prev. 19). For small manufacturers, the
diffusion index and the manufacturing index are anticipated to be -6 (prev. -5)
and -6 (prev. -2), respectively. Lastly, the small non-manufacturers diffusion
index is expected at 1 (prev. -1), and the small non-manufacturing index is
predicted to tick slightly higher to 7 (prev. 6). The Reuters Tankan, which
closely tracks the central bank’s quarterly survey, revealed that large
Japanese manufacturers remained pessimistic for the third month in a row in
March due to global economic slowdown concerns. However, the service-sector
firms’ mood improved, suggesting a domestic demand-driven recovery. These mixed
results emphasize the fragility of Japan’s economy as exports slow and private
consumption lacks momentum, according to some desks. Over the next three
months, the Reuters Tankan index is expected to rebound, but the service-sector
index is predicted to drop. Reuters’ Tankan canvassed 493 large companies with
a capital base of JPY 1bln employing 100 or more people.</p><p class=“MsoNormal“>US ISM Manufacturing
(Mon), ISM Services PMI (Wed): </p><p class=“MsoNormal“>The
Manufacturing ISM is seen easing to 47.1 in March vs 47.7 in February. As a basis
for comparison, the S&P Global PMI series reported an improvement in
manufacturing conditions, with the index rising from 47.3 to 49.3. New orders
have now fallen for six straight months in manufacturing however. “Unless
demand improves, there seems little scope for production growth to be sustained
at current levels,” S&P said. It also said that the manufacturing upside
was mainly a reflection of improved supply chains allowing firms to fulfil
backlogs of orders. The Services ISM is expected to moderate to 54.6 in March
vs 55.1 in February; S&P Global’s gauge for the month saw upside in the
services sector, which rose to 53.8 from 50.6. Within the release, there will
be attention on the price components after S&P said the inflationary upturn
was now being led by stronger services sector price increases, linked largely
to faster wage growth. Overall, S&P said that March witnessed an
encouraging resurgence of economic growth, with the business surveys indicating
an acceleration of output to the fastest pace since May of last year, and was
implying annualised GDP growth approaching 2%. That said, the upturn is uneven,
and largely driven by the services sector.</p><p class=“MsoNormal“>BoC Business
Outlook Survey (Mon): </p><p class=“MsoNormal“>There
will likely be less attention on the BOS this quarter, given the BoC has
already indicated that it expects to hold the policy rate at its current level,
conditional on economic developments evolving in line with the MPR forecasts.
That said, there will be attention on any commentary around prices, given the
Bank has left itself scope to resume policy tightening if it was needed to
return inflation to the 2% target.</p><p class=“MsoNormal“>EU Trip
To China (Tue): </p><p class=“MsoNormal“>European
Commission President von der Leyen (VdL) and French President Macron are poised
to travel to China on April 4th. The meeting comes soon after Chinese President
Xi’s three-day visit to Moscow, in which he met with Russian President Putin
and the two countries further expanded ties in several sectors, including
military strategic communication and coordination. Furthermore, SCMP sources
suggested that China’s Commerce Minister Wang Wentao is set to visit Brussels
in April, when he will likely look to steady “turbulent” China-EU relations,
according to SCMP. European Commission President VdL outlined the EU’s new
approach to China in her speech on March 30th. The new strategy aims to
safeguard the bloc’s interests, values, and citizens while addressing concerns
over China’s growing proximity to Russia. VdL outlined three main pillars:
bolstering economic security, acting more assertively, and selectively
cooperating with China, and emphasised the need for a new EU economic security
strategy and urged the bolder and faster use of existing tools, including the
Foreign Subsidies Regulation and the new anti-coercion instrument. She also
proposed developing new defensive tools to screen exports of dual-use
technology to systemic rivals’ like China, and reassessing the stalled EU-China
Comprehensive Agreement on Investment. The European Commission President also
stressed that the bloc’s approach is not about decoupling from China, but
rather reducing risks and maintaining cooperation in specific areas. Meanwhile,
the FT reported that the “new defensive tools” will be used to monitor
technology, including quantum computing, robotics, artificial intelligence, and
biotech. Analysts at RANE say the announcement demonstrates Brussels’ intention
to take a firmer stance on China while preserving economic and diplomatic
relations, as export controls are currently enforced at the member-state level.
On that note, it’s worth noting that Japan announced chip-making equipment
restrictive measures as part of a three-way agreement with the US and the
Netherlands. Japanese officials said the scope of restrictions went further
than the US measures imposed in 2022. Chip-equipment exporters would need
licenses for all regions. The measures will affect a broader range of companies
than previously expected, according to the FT. As always, a joint presser could
be perceived by markets as bilaterally constructive. </p><p class=“MsoNormal“>Chinese Caixin
PMIs (Thu): </p><p class=“MsoNormal“>The BoJ’s
key quarterly Tankan survey is expected to show declining business confidence
among large manufacturers. Estimates for the Q1 survey are mixed across
different industries. Large industry capital expenditure (CAPEX) is expected to
increase by 4.9% (prev. +19.2%), while small industry CAPEX is anticipated to
decrease by 9.0% (prev. +3.8%). The outlook index for big manufacturing is
projected to slightly drop to 4 (prev. 6), and the large manufacturers’ index
is predicted to decrease to 3 (prev. 7). The large non-manufacturers diffusion
index is expected to stand at 16 (prev. 11), while the large non-manufacturers
index is projected to be at 20 (prev. 19). For small manufacturers, the
diffusion index and the manufacturing index are anticipated to be -6 (prev. -5)
and -6 (prev. -2), respectively. Lastly, the small non-manufacturers diffusion
index is expected at 1 (prev. -1), and the small non-manufacturing index is
predicted to tick slightly higher to 7 (prev. 6). The Reuters Tankan, which
closely tracks the central bank’s quarterly survey, revealed that large
Japanese manufacturers remained pessimistic for the third month in a row in
March due to global economic slowdown concerns. However, the service-sector
firms’ mood improved, suggesting a domestic demand-driven recovery. These mixed
results emphasize the fragility of Japan’s economy as exports slow and private
consumption lacks momentum, according to some desks. Over the next three
months, the Reuters Tankan index is expected to rebound, but the service-sector
index is predicted to drop. Reuters’ Tankan canvassed 493 large companies with
a capital base of JPY 1bln employing 100 or more people.</p><p class=“MsoNormal“>RBA Announcement
(Tue): </p><p class=“MsoNormal“>The RBA
will conduct its policy April meeting next week and there are mixed views on
whether the central bank will continue hiking rates or pause, with a Reuters
poll showing 14 out of 27 economists forecast the RBA to hike the Cash Rate by
25bps to 3.85% and 13 expecting a pause, while money markets are more decisive
and are pricing an 87% probability for a pause. As a reminder, the RBA raised
rates by 25bps at the last meeting in March which was widely expected and the
central bank’s 10th consecutive rate increase, while it noted that the Board
remains resolute in its determination to return inflation to target and expects
further tightening of monetary policy will be needed, which was a slight tweak from
its previous guidance that the Board expects further increases in interest
rates will be needed. Furthermore, the RBA stated that monthly CPI suggests
inflation seems to have peaked and in assessing when and how much further
interest rates need to increase, the Board will be paying close attention to
developments in the global economy, trends in household spending and the
outlook for inflation and the labour market. The rhetoric from the central bank
was less hawkish than previous, but still pointed to further tightening and
Governor Lowe stated that they are closer to the point where it will be
appropriate to pause with the timing to be determined by the data and
assessment of the outlook, while he kept options open for the upcoming meeting
as he noted that they could pause if that’s what the data suggests, but if it
suggests keep going, then they will do that and have a completely open mind at
Board meetings. This places greater emphasis on the data, although the latest
releases have been mixed as Employment rebounded in February following two
months of contraction and the Unemployment Rate fell to 3.5% vs. Exp. 3.6%
(Prev. 3.7%), while monthly CPI in February was softer than expected at 6.8% vs
Exp. 7.1% (Prev. 7.4%) and recent PMI figures have slipped into contractionary
territory. In addition, the recent turmoil in the banking industry and
contagion fears add to the case for a pause and have prompted an adjustment of
expectations with Westpac now forecasting the RBA to keep rates unchanged at
the upcoming meeting and also lowering its peak rate forecast by 25bps to
3.85%.</p><p class=“MsoNormal“>RBNZ Announcement
(Wed): </p><p class=“MsoNormal“>The RBNZ
is expected to continue hiking rates at its meeting next week in an effort to
curb inflation, albeit at a less aggressive pace than previously with money
markets pricing a 97% chance for the OCR to be lifted by 25bps to 5.00% and
only a 3% probability for a 50bps increase. As a reminder, the RBNZ raised
rates by 50bps at its prior meeting, as widely expected, while the central bank
remained hawkish in which it signalled further rate hikes to return inflation
to target and noted that although there were early signs of price pressures
easing, core consumer inflation remained too high and the Committee agreed it
must continue to raise the OCR to fulfil its remit. Furthermore, the RBNZ
stated that the options it considered were either a 50bp or 75bp increase at
that meeting and it also maintained the view for rates to peak at 5.50%, but
upped its CPI forecast for March 2024 to 4.2% from 3.8%. The rhetoric from the
central bank since that meeting has remained hawkish as Assistant Governor Silk
stated that they are not contemplating a pause in tightening and all rate hike
options are on the table for the April meeting with the RBNZ to do all it takes
to control inflation, while Chief Economist Conway said inflation is high and
widespread because strong demand outstripped supply with the central bank
incredibly determined to get inflation and inflation expectations back to
target. Nonetheless, markets are pricing a less aggressive hike at the upcoming
meeting given the recent deterioration in data including GDP for Q4 which
showed a wider-than-expected contraction Q/Q, at -0.6% vs. Exp. -0.2% (Prev.
2.0%, Rev. 1.7%) and Y/Y growth at 2.2% vs. Exp. 3.3% (Prev. 6.4%), while
Retail Sales Volumes Q/Q also shrank, by 0.6% (Prev. 0.4%, Rev. 0.6%). The weak
data releases have prompted an adjustment in expectations and the recent global
banking turmoil has also added to the case for a downshift in gears with ASB
anticipating the RBNZ to hike by just 25bps in April and Westpac now
forecasting the OCR to peak at 5.00%.</p><p class=“MsoNormal“>RBI Announcement
(Thu): </p><p class=“MsoNormal“>The RBI
is expected to hike rates again when it concludes its 3-day policy meeting next
week, with 49 out of 62 economists surveyed by Reuters forecasting the Bank to
raise the Repurchase Rate by 25bps to 6.75%, while the majority of economists
then expect the central bank to pause after this meeting through to the end of
the year. As a reminder, the RBI hiked rates by 25bps at the last meeting via a
4-2 vote in which MPC member Goyal joined prior dissenter Varma in voting
against the rate increase and both continued to oppose the MPC’s decision to
keep the policy stance remaining focused on the withdrawal of accommodation,
which was also made through a 4-2 vote. The rhetoric from RBI Governor Das
remained hawkish as he noted that further calibrated monetary policy action is
warranted and the situation remains fluid and uncertain, while he added that
the stickiness of core inflation is a matter of concern and they need to see a
decisive fall in inflation, but commented more recently that the Indian economy
remains resilient and the worst of the inflation is behind them. Nonetheless,
inflation returned to above the RBI’s 2%-6% tolerance range for January and
February with the most recent CPI reading at 6.44% vs. Exp. 6.35% (Prev.
6.52%), which supports the case for a continuation of the RBI’s rate increases.
However, given the previous composition of votes, it would only need one
additional vote for a pause as long as that vote was from RBI Governor Das who
has the casting vote in evenly split decisions, while State Bank of India
Research are among those in the minority calling for a pause citing concerns of
a material slowdown in the affordable housing loan market and financial
stability concerns.</p><p class=“MsoNormal“>Australian
Trade Balance (Thu): </p><p class=“MsoNormal“>The Trade
Balance for February is expected to narrow to a surplus of USD 11bln following
last month’s surplus of USD 11.688mln. Analysts at Westpac forecast a wider
surplus of USD 12.6bln driven by an “expected pull-back in imports.” The desk
argues that in January, the import of transport goods increased by 29% due to
shipments arriving before Lunar New Year, but a partial reversal is expected in
February. Export earnings are projected to rise by 0.3%, driven by services
exports, which continue to grow after the national border reopened in the first
half of 2022. Goods exports are expected to remain stable in terms of both
volume and prices, Westpac says.</p><p class=“MsoNormal“>US Jobs
Report (Fri): </p><p class=“MsoNormal“>The
consensus looks for 240k nonfarm payrolls to be added in March, with the
unemployment rate seen unchanged at 3.6%. A headline vs consensus would be
lower than the prior, as well as recent trend rates (3-month average 351k,
6-month 336k, 12-month 362k), and would follow two months of upside surprises.
Average earnings are seen growing 0.3% M/M, a touch quicker than the +0.2% in
February, but may drag the annual measure down to 4.3% Y/Y from 4.6%. Average
workweek hours are expected to be unchanged at 34.5hrs. It is worth noting that
the data covers the period prior to the recent regional bank crisis; even so,
analysts suggest that the banking issues are likely to have a limited impact on
US labour demand more broadly. S&P Global PMI data contains employment
sub-indices, and these improved in the month for the services sector, but pared
back slightly in the manufacturing sector. Weekly jobless claims data that
coincide with the establishment survey window declined, remaining sub-200k,
highlighting ongoing tightness in the labour market.</p><p class=“MsoNormal“>For more
research like this check out Newsquawk’s <a target=“_blank“ href=“https://newsquawk.com/daily/article/?id=2933-week-ahead-preview-highlights-include-nfp-ism-rba-rbnz-boj-tankan-boc-bos&utm_source=forexlive&utm_medium=research&utm_campaign=partner-post&utm_content=weekly“>live
squawk box</a> for 7 days free.</p>
This article was written by Newsquawk Analysis at www.forexlive.com.
Is gold on the verge of a big short?
<p class=“text-align-start“>Did you spot the triple top in <a target=“_blank“ href=“https://www.forexlive.com/terms/g/gold/“ class=“terms__main-term“ id=“c0483026-a32e-4e25-8e74-f808d52790c3″>gold</a>’s price, along with its struggle to break past the 2000 mark? If a high-reward, low-probability trading opportunity piques your interest, this gold price forecast could be right up your alley. Just remember, always trade at your own risk!</p><p class=“text-align-start“>Gold technical analysis: Anticipating a short trade soon</p><p class=“text-align-start“>A quick overview of the the gold technical analysis video above</p><ul><li>Triple top formation on the daily time frame</li><li>Signs of possible fatigue in the gold market</li><li>Yellow channel with touch points at around 1800 and 1975</li><li>Pivot point at 1975 seen throughout March</li></ul><p>With these factors in mind, let’s delve into the potential trade idea.</p><p class=“text-align-start“>The 7:1 Short trade idea on Gold futures</p><p>This strategy suggests shorting gold on the next possible spike up at 2010.8. Keep in mind that this is an orientation and you should:</p><ul><li>Set alerts and follow the price manually</li><li>Wait for bull trapping before the last failure and decline</li><li>Take partial profits at about 1942 for a 2.5:1 reward versus risk</li></ul><p>The final target for this trade idea is around 1827, which represents a move of over 9%. To manage risk, a stop loss is set at 1.3% above, at 2037.</p><p class=“text-align-start“>The trade-off: high reward vs. low probability</p><p>As with any trading strategy, there’s no free lunch. Aiming for bigger rewards means accepting lower probabilities. Some might see this as a risky approach, preferring more confirmations. However, if you’re looking for a potential high-reward trade, this gold technical analysis is worth considering.</p><p class=“text-align-start“>Takeaway</p><p>Keep an eye on gold’s price and be ready to act when the right opportunity presents itself. And to stay updated with more views and analyses like these, <a target=“_blank“ href=“https://www.youtube.com/@Forexlive?sub_confirmation=1″ target=“_new“>subscribe to the Forexlive.com Youtube channel</a>.</p>
This article was written by Itai Levitan at www.forexlive.com.
It quarter end. How did the major currency pairs vs the USD do? What levels to eye in 2Q
<p>Today is quarter end. The USD is ending the quarter mixed with declines vs the <a target=“_blank“ href=“https://www.forexlive.com/terms/e/eur/“ class=“terms__main-term“ id=“b0427fd7-674c-4ad1-b689-22d1f8b087b0″>EUR</a>, <a target=“_blank“ href=“https://www.forexlive.com/terms/g/gbp/“ class=“terms__secondary-term“ id=“3a5ab7c1-ff09-45ea-87d4-eea6613bb754″>GBP</a>, CHF and CAD and gains vs the JPY, AUD and NZD. Below is a technical summary of the major pairs in what was an up and down quarter for all of the pairs. I also outline the technical levels in play to start the new month/quarter. The levels will be the roadmap for the journey ahead.</p><p>———————————————————————————————————————————————————-</p><p>EURUSD: Up 152 pips or 1.426%</p><p>The EURUSD moved up 152 pips at 1.0851 from the end of year level. That is up 1.426% for the year. The low for the quarter was at 1.0481 on January 6.. The high reached 1.10317 on February 2. The low to high range for the month was 547 pips. </p><p>The general price action saw the pair move higher in January, lower in February, and back higher in March. The price dipped below the rising 100 day MA on 1 day in the quarter (on March 16) but had no closes below that MA level during the entire 1Q (see blue line on the chart above). The 100 day MA is at 1.06479 heading into the new quarter. It would take a move below the level MA to tilt the bias more to the downside. </p><p>ON the topside getting above 1.0940 and then the high for the quarter at 1.10317 would increase the bullish bias. </p><p>———————————————————————————————————————————————————-</p><p>USDJPY: Up 162 pips or 1.25%</p><p>The USDJPY is up 162 pips from the end of 2022 level at 131.10 or 1.25%. At the quarter high reached on March 8th, the pair was up 681 pips. At the January 16 low, the pair was down -388 pips. The low to high trading range was 1070 pips which is the most narrow since 3Q of 2021. </p><p>Technically, the run higher was able to extend above the 100 day MA (blue line) and close above that MA line for 2 trading days. The 200 day MA was breached intraday on one day, but did not close above the 200 day MA during the entire quarter. The high price today got within 25 pips of the falling 100 day MA at 132.936. The high today was the closest the price has been to the 100 day MA since March 9th. It will take a move above the 100 day MA in the new trading month, to increase the bullish bias for the pair. Until then, the sellers remain in control. </p><p>———————————————————————————————————————————————————-</p><p>GBPUSD: Up 247 pips or 2.04%</p><p>The GBPUSD reached a low on January 6th at 1.18408 and did not return to that level until March 7 to March 9 when a new first-quarter low was reached at 1.1802 on March 8. The price has since moved up to near the high with a peak today at 1.2422. That got with 23 pips of the high from January 23rd at 1.2445. </p><p>The high in January got within 2 pips of the December high at 1.2447 making a double top at that level. Heading into the new trading month, that ceiling will be the key upside target to get to and through. </p><p>On the downside, the GBPUSD has the rising 100 day MA at 1.21266. The price moved below the 100 and 200 day MAs in March on the way to the March 7 low, but there were only 4 closes below the 100 day MA in the quarter, and only 2 closes below the 200 day MA which is near the lows at 1.1853. </p><p>For the quarter the pair is trading up 247 pips or 2.04%. The low to high trading range was only 645 pips. That was the lowest range since the 2Q of 2021.</p><p>———————————————————————————————————————————————————-</p><p>USDCHF: Down -92 pips or -1.00%</p><p>The USDCHF traded down, up and down in the 1Q of 2023. From the closing level at 0.92244, the price moved to a low in early February at 0.90586. On March 2, the high reached 0.94404 which was retested on March 8th when the price reached 0.94387 before tumbling to a low of 0.90706, with 12 pips of the early February low. Another snap back rally and fall into month/quarter end reached 0.91152 today before bouncing to 0.9146 near the close.</p><p>The total low to high trading range for the quarter is only 381 pips which was the lowest trading range since Q1 2022. The pair is trading down -92 pips from the end of 2022 level or – 1.00%. </p><p>Technically, the highs skimmed the falling 100 day MA (blue line). There was only 1 day (March 8th) when the price moved above the 100 day MA, but there were NO closes above the 100 day MA. The 100 day MA is up at 0.92965. The price would have to move above that falling MA, and stay above, to increase the bullish bias for the pair. On the downside, the 0.90586 to 0.9101 are home to a number</p><p>———————————————————————————————————————————————————-</p><p>USDCAD: -26 pips or -0.19%.</p><p>The USDCAD is ending the quarter down just 26 pips from the end of year level of 1.35415 or -0.19%. The initial move this quarter was down to the low for the quarter reached in early February at 1.3261. The snap back rally took the price to the high which was reached on March 10 at 1.38614. The low to high trading range was an even 600 pips in total. That was the lowest low to high trading range since the 1Q of 2022 when the range was 471 pips. </p><p>Technically, the price spent near equal time above and below the 100 day MA. It is therefore apropos that the pair tested the 100 day MA both yesterday and today at 1.35159. The price is closing today right at the MA level. The new month and quarter will use that MA as the bullish/bearish barometer. Move below and traders will look toward the rising 200 day MA which is at 1.33691. The price has not traded below the 200 day MA since August 11, 2022, and not had a closing daily bar below the MA since June 8, 2022. </p><p>If the price does move higher, traders will need to get above the 50% midpoint of the 1Q at 1.35614 and then the swing high from January at 1.36849. There is a swing area between 1.3807 up to 1.38614 which has a number of swing highs going back to September 2022 (see red numbered circles).</p><p>———————————————————————————————————————————————————-</p><p>AUDUSD: -131 pips or -1.99%</p><p>The AUDUSD closed 2022 at 0.68146 and is closing the quarter at 0.6683. That is down -131 pips on the quarter or -1.99%. The low to high trading range took the price to a high on February 2nd at 0.7157. The low was reached at 0.6564 on March 10. The total high to low trading range was 593 pips. </p><p>Technically, the high price for the quarter stalled after taking out the high from August 2022 at 0.71357 to a high of 0.7157 on February 2nd. That break could not be sustained on the day of the break, and the move to the lows for the quarter was started. </p><p>That move too 26 days to fall 593 pips before rebounding back toward the falling 200 day MA (green line) currently at 0.67517. Sellers leaned ahead of the 200 day MA on both March 22 and March 23. The high on the last day of the quarter reached 0.67373, just 14 pips from the 200 day MA, before rotating back lower and closing near 0.6683. The lows over the last 3 trading days of the quarter stalled near the 50% midpoint of the rand since the October 2022 low at 0.6663. </p><p>What next?</p><p>The 200 day MA will be the close barometer on the topside. Move above and some of the bearish bias is replaced with a more bullish bias. Above the 200 day MA will have traders targeting the higher 100 day MA at 0.67984. A move above that would open the bullish door more. </p><p>On the downside, a move below the 50% midpoint, would increase the bearish bias and have traders looking toward the lows and lower swing area between 0.65468 and 0. 65847 (see green numbered circles). </p><p>———————————————————————————————————————————————————-NZDUSD: -96 pips or -1.50%</p><p>The NZDUSD closed the year at 0.6348. The price is settling on the last day of the quarter at 0.6252. The price moved down 96 pips or -1.50%. The high for the quarter was reached on February 2 at 0.65375. The low was reached on March 8 at 0.6084. The high to low trading range was 451 pips, which was the lowest range for a quarter since Q3 2021. </p><p>Technically, both the high extreme for the quarter and the low extreme stalled near swing areas. On the topside the area between 0.6529 and 0.6578 stalled the rally (see red numbered circles). On the downside, the swing area between 0.60559 and 0.60844 stalled the fall (see green numbered circles). </p><p>The up and down price action for the quarter started to flatten both the 100 and 200 day MAs (blue and green lines on the chart above). The 100 day MA also moved above the 200 day MA. The 100 day MA is ending the quarter at 0.62925. The 200 day MA is at 0.61453. The closing price is closer to the higher 100 day MA at 0.62527 after the high price for the day tested the upper MA level on Friday. </p><p>Over the last 15 trading days, the price closed between the two daily MAs on 14 of the days (there was a close above the 100 day MA on March 17, but that break failed the next day). </p><p>Going into the new trading month/quarter, the two MAs will be the bullish above, and bearish below barometers. Get above the 100 day MA at 0.6292 and stay above is more bullish. Move below the 200 day MA at 0.6151 is more bearish. </p>
This article was written by Greg Michalowski at www.forexlive.com.
Forexlive Americas FX news wrap: Dip in PCE inflation leads to a melt up in stocks
<ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/us-february-pce-core-inflation-46-vs-47-expected-20230331/“>US February PCE core inflation 4.6% vs 4.7% expected.</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/canada-january-gdp-05-versus-03-expected-20230331/“>Canada January GDP 0.5% versus 0.3% expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/feds-collins-maintaining-tight-monetary-policy-is-the-key-to-lowering-inflation-20230331/“>Fed’s Collins: Maintaining tight monetary policy is the key to lowering inflation</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/dallas-fed-feb-trimmed-mean-pce-price-index-40-vs-58-prior-20230331/“>Dallas Fed Feb trimmed mean PCE price index +4.0% vs +5.8% prior</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/feds-williams-economic-data-will-drive-policy-the-outlook-is-uncertain-20230331/“>Fed’s Williams: Economic data will drive policy, the outlook is uncertain</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/atlanta-fed-gdpnow-estimate-for-1q-growth-dips-to-25-20230331/“>Atlanta Fed GDPNow estimate for 1Q growth dips to 2.5%</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/opec-oil-output-fell-in-march-survey-20230331/“>OPEC oil output fell in March – survey</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/ecbs-lagarde-core-inflation-is-still-significantly-too-high-20230331/“>ECB’s Lagarde: Core inflation is still significantly too high</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/canadian-gdp-on-track-for-almost-3-growth-in-q1-but-it-shouldnt-bother-boc-hawks-cibc-20230331/“>Canadian GDP on track for almost 3% growth in Q1 but it shouldn’t bother BOC hawks – CIBC</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/umich-march-final-us-consumer-sentiment-620-vs-632-expected-20230331/“>UMich March final US consumer sentiment 62.0 vs 63.2 expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/ecbs-villeroy-we-may-still-have-a-little-way-to-go-with-rate-hikes-20230331/“>ECB’s Villeroy: We may still have ‚a little way to go‘ with rate hikes</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/feds-collins-we-need-to-get-conditions-sufficiently-tight-and-then-hold-20230331/“>Fed’s Collins: We need to get conditions sufficiently tight, and then hold</a></li></ul><p>Markets:</p><ul><li>Gold down $10 to $1970</li><li>WTI crude oil up $1.14 to $75.51</li><li>US 10-year yields down 1 bps to 3.48%</li><li>S&P 500 up 58 points to 4110</li><li>CAD leads, EUR lags</li></ul><p>When I think about this market, we came into January and everyone was worried about recession. By January, it was fears of inflation and in March there was a bank panic. Add it all up and it’s +7% in the S&P 500 and 16% in the Nasdaq. They say that bull markets climb a wall of worry and that’s a powerful example.</p><p>On Friday, the flows were a big factor but the bias towards risk trades was evident and helped out by a more-benign PCE report. </p><p>Despite that, the US dollar was broadly strong, trailing only the loonie as the top performer. The ECB’s Villeray downplayed the outlook for significantly more hikes and that may have weighed on the euro but flow-driven trade was perhaps the larger factor. Dollar buying was particularly strong into the London fix.</p><p>EUR/USD fell to 1.0840 from a high of 1.0900 in early North American trade. That was despite falling US Treasury yields and a positive risk trade. </p><p>Cable was equally soft, falling 52 bps to 1.2330 with nearly all of that coming in the latter part of the day.</p><p>The commodity currencies couldn’t sustain a bid despite risk appetite with the exception of the loonie, which made some modest headway with the help of higher oil prices.</p><p>The comments late in the day from Fed officials were largely ignored, with the market content to wait for the same data as the FOMC. Pricing suggests a hike in May is 50/50 but there’s no longer much scope for hiking beyond that.</p>
This article was written by Adam Button at www.forexlive.com.
US stock indices close the day near session highs
<p>The major US stock <a target=“_blank“ href=“https://www.forexlive.com/terms/i/indices/“ class=“terms__secondary-term“ id=“eb50e0fb-8258-4e43-80e6-8831246f8b37″>indices</a> are closing the day near the highs for the day. The gains were led by the NASDAQ index which rose over 1.7%. </p><p>A snapshot of the closing levels shows:</p><ul><li>Dow Industrial Average 415.12.41.26 percent at 33274.14</li><li>S&P index of 58.50 points or 1.44% at 4109.32 </li><li>NASDAQ index up 208.43 points or 1.73% at 12221.90</li></ul><p>For the calendar month, the <a target=“_blank“ href=“https://www.forexlive.com/terms/n/nasdaq/“ class=“terms__main-term“ id=“73ea5227-7971-4d75-a878-f20ede81c27e“>NASDAQ</a> index led the way with a gain of 6.69%</p><ul><li>Dow industrial average rose 1.89%</li><li>S&P index rose 3.51%</li><li>NASDAQ index rose 6.69%</li></ul><p>For the first quarter, the NASDAQ index led the way with an oversized gain of 16.77%. That was the largest percentage increase since the 2Q of 2020 when the index rose 30.63%. You have to go back to the 1Q of 2012 to have the next largest percentage gain for quarter.</p><ul><li>Dow Industrial Average squeaked out a small gain of 0.38%</li><li>S&P index rose by 7.03%</li><li>NASDAQ index rose by 16.77%</li></ul><p>Looking at the NASDAQ daily chart, the price is within 49 points of the most recent highs going back to September 12, 2022 and February 2, 2023 near 12670.</p><p> A move above that double top would have traders targeting the 38.2% retracement of the move down from the November 22 2021 all-time high. That retracement level comes in at 12427.97.</p>
This article was written by Greg Michalowski at www.forexlive.com.