Wednesday Briefing: From DXY, Gold to Latest FX Headlines; March 27, 2024

US Dollar Index Overview

• DXY trades flat and consolidates around 104.38 mark.
• It made intraday high at 104.45 and low at 104.21 mark.
• A day Chart and H1 chart with triple EMA suggest downside movement for the time being.
• Immediate hurdles are seen at 104.58 to 103.84 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 enjoys roller coaster movement and consolidates around $2,190 mark.
• The pair made intraday high at $2,197 and Low at $2,173 mark.
• A day chart and H1 chart with triple EMA suggests down trend for the time being.
• A sustained close above $2,194 on H1 chart requires for the downside rally.
• Alternatively, a consistent close below $2,182 on H1 chart will test further supports.

Key Headlines for the FX market:

• Australia CPI remains unchanged at 3.4 pct.
• Search divers were expected to return near dawn to the waters surrounding the twisted ruins of a bridge knocked down in Baltimore Harbor by a faltering cargo ship, leaving six workers missing and presumed dead.
• President Joe Biden’s son Hunter will ask a US judge to dismiss the criminal case accusing him of evading $1.4 million in taxes, arguing that prosecutors bowed to political pressure from Republican lawmakers investigating his father.
• Russian state investigators said they would study a request from parliamentarians to investigate what they called the “organization, financing, and conduct of terrorist acts” against Russia by the US and other Western countries.
• Thousands of people protested in Budapest near parliament demanding the chief prosecutor and Prime Minister Viktor Orban resign after a former government insider accused a senior aide to Orban of trying interfere in a graft case.
• US Defense Secretary Lloyd Austin said it was a moral and strategic imperative to protect Palestinian civilians in the war between Israel and Hamas and that the humanitarian catastrophe in besieged Gaza was getting worse.
• South Africa’s second most popular party the Democratic Alliance would not rule out a deal with the ruling African National Congress should the ANC fail to get the majority it needs to retain power in May elections, its leader said.
• Russian oil firms face delays of up to several months to be paid for crude and fuel as banks in China, Turkey and the United Arab Emirates become more wary of U.S. secondary sanctions, eight sources familiar with the matter said.
• Possible confusion over the new stock symbol for former President Donald Trump’s Truth Social saw some investor brokerage balances briefly jump by hundreds of thousands of dollars on the first day Trump’s “DJT” ticker traded.
• ITA Airways posted a 2023 net loss of only 5 million euros ($5.4 million), a strong improvement from the year before, and revenues of 2.4 billion euros amid an increase in the flights it operates, the company said on Wednesday.
• British businesses trimmed their plans for staffing and wage increases this month, according to a survey published on Wednesday that suggested April’s big increase in the minimum wage is weighing on employers.

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

Good Luck