The Forex Market Wrap is here!
Watch the video to learn what key levels have been hit this week!
Forex Market Wrap
This week investors were looking for the USD strength to re-enter the market after a short spell of weakness. The Non-Farm Payroll data was forecast to come in weaker however, the number came in above expectations at 263k. The average hourly earnings remained unchanged but the unemployment rate fell to 3.5% from 3.7%. This lifted the USD and saw the greenback strengthen against most currencies.
In central bank news the RBA raised interest rates by 25bps from 2.35% to 2.60%. This was below the forecasts which were expected to see a rise to 2.85%. This left investors disappointed as it is the first central bank to slow down the rate of tightening. The RBNZ followed this by hiking interest rates by 50bps which brings their rate to 3.50%.
This week we expected the USD Index to trade lower back to the key areas of support between 110.80 and 110.20. Here we expected buyers to step into the market and continue the weekly upward trend that the price has been on. The USD Index followed this analysis this week seeing the price rebound from the key support zone and head higher. The price post NFP rallied towards the recent resistance at 113.00-113.50. If price breaks through this zone we could expect prices to trade higher.
The price of EURUSD traded higher this week until it was met with the major resistance at parity. This level held confluence with the support from the USD Index. After the price retested this level sellers stepped in driving prices towards the lows at 0.9600. If the USD Index continues towards the major swing highs we should see the market back to the recent 2022 lows.
The NZDUSD price was on our watchlist this week due to the RBNZ announcement and the strength meter which highlighted the NZD was the weakest currency. The price remained range bound this week against our expectations. Instead of the price heading towards the 2020 lows we saw the price move higher to test the key lows at 1.5800. The price fell from here but has not broken through the lows just yet.
The price of Gold remained in the larger time frame range this week. This continued as the USD weakened for the majority of the week. Once the price broke the $1680.00 highs price rallied into the $1730.00 highs which then held as resistance. If the USD turns here and strengthens then this recent bullish run on Gold could be at an end.
Did you see our AUDUSD Analysis? You can see it here.
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