Wednesday Briefing: From DXY, Gold to Latest FX Headlines; Aug 23, 2023

US Dollar Index Overview

• DXY weakens sharply as U.S. released Flash PMI data with negative numbers.
• It made intraday high at 103.98 and low at 103.38 mark.
• A day Chart and H1 chart with triple EMA suggest up trend for the time being.
• Immediate hurdles are seen at 103.82 to 103.22 mark.
• A sustained close of either side on H1 chart requires for the further directions of the U.S. dollar.

Technical Analysis: XAU/USD (Gold)

• Gold spikes up sharply as U.S. released flash PMI data with negative numbers and touches $1,918 mark.
• The pair made intraday high at $1,918 and Low at $1,898 mark.
• A day chart and H1 chart with triple EMA suggest up trend for the time being.
• A sustained close above $1,921 on H1 chart requires for the upside rally.
• Alternatively, a consistent close below $1,909 on H1 chart will test further supports.

Key Headlines for the FX market:

• U.S. Flash Manufacturing PMI Stands at 47.0 vs 49.0 previous release.
• U.S. Flash Services PMI stands at 48.7 vs 51.5 previous release.
• U.S. New Home Sales stand at 714K vs 684K previous release.
• India succeeded its second attempt to land on the moon today, a mission seen as crucial to lunar exploration and the country’s standing as a space power. The Chandrayaan-3 spacecraft successfully landed on the lunar South Pole less than a week after a similar Russian lander crashed.
• Thailand’s former leader Thaksin Shinawatra was hospitalized on his first night in prison after his return from self-exile, officials said, citing concern about his heart and blood pressure.
• Zimbabweans are lining up to vote saying they want change from economic chaos but analysts are skeptical that the ruling party will allow a credible election.
• Eight Republican presidential contenders will take part in the party’s first debate of the 2024 race in the hopes of emerging as a viable alternative to front-runner Donald Trump, who is expected to cast a long shadow over an event he plans to skip.
• The first of Trump’s co-defendants in Georgia’s criminal case accusing the former US president and his associates of subverting his 2020 election loss surrendered at an Atlanta jail.
• Japan expects a “significant” impact from seafood import ban by Hong Kong and Macau due to the upcoming release of water from the Fukushima nuclear plant.
• Euro zone business activity declined far more than thought in August with the slide in Germany particularly fast, while some inflationary pressures returned.

Source: Reuters

Keep an eye open for the latest news and fundamentals affecting the FX markets.
Take a look and do trade wisely!

Good Luck