AUDUSD: bears have intercepted the initiative in the pair
After completing its upward trend the day before, the AUDUSD trading instrument has shown a moderate correction, testing 0.6659.
Pressure on the pair at the trading session on Tuesday is given by the uncertain macroeconomic statistics block, according to which the business confidence index of the National Bank of Australia for February showed a decline to -4.0 points from 6.0 points with the forecast to see the zero dynamics. The position of the corresponding indicator of conditions adjusted to 17.0 points from 18.0 points with the forecast to strengthen to 21.0 points. The Westpac Consumer Confidence Index for March posted zero growth and a 6.9% decline in the month before, with the market expecting a 0.1% gain.
- Resistance levels: 0.6700, 0.6750, 0.6800 and 0.6853.
- Support levels: 0.6600, 0.6563, 0.6500, 0.6450.
USDJPY: Japanese economy continues to be under pressure
According to the information from the trading floors, the USDJPY is slightly strengthening and has again tested the 134.00 level. The pair is regaining ground after ending a three-day "bearish" rally, which was followed by an update of the local highs of February 14.
The Japanese economy remains in a difficult situation. Despite consumer prices in December reaching a maximum of over 40 years at 4.0%, surpassing the target set by the national regulator, and government debt at 1.0 trillion yen or 266% of gross domestic product in January, the Bank of Japan continues to keep monetary parameters on the current super soft vector, including keeping the interest rate in negative territory, fearing the onset of deflation. Officials agree that rising prices do not have a sustainable trend and expect inflation to lose its potential by the end of 2023. But a recent Center for Economic Research in Japan forecast a seasonally adjusted GDP figure for January that was down 0.6% from December, the biggest drop since August 2022. Economists argue that a continuation of the current trend will cause the national economy to lose 3.4% for the year already in Q1.
- Resistance levels: 134.00, 134.54, 135.57, 136.50.
- Support levels: 133.00, 132.00, 131.00, 130.00.
NZDUSD: the position is in the trend of the head & shoulders reversal pattern.
A sharp weakening of the US dollar allowed the pair NZDUSD to go to the local growth at 0.6206.
The positive dynamics was caused by the macroeconomic statistics, based on which the food products group increased by 1.5% in February, taking into account the seasonal fluctuations, showing 2.1%. A significant strengthening of the cost of fruits and vegetables by 5.6%, soft drinks by 1.6%, meat and poultry - 0.6%. Meanwhile, tourism industry statistics showed an increase in the number of foreign tourists visiting New Zealand in January to 265,400, surpassing the same month in 2022 by 261,400.
- Support levels: 0.6156, 0.6000.
- Resistance levels: 0.6265 and 0.6400.
Gold analysis
The precious metal is quoted in decline, because the "bulls" lost potential in the last three trading sessions, which allowed the asset to update the local high of February 3. At the moment, the gold is held around 1900.00, continuing its decline.
Japan also shows upward dynamics, where the bank metal managed earlier to update the level of 66.67, having surpassed the level of the previous week by 32.0 yen. As it follows from the reports of industrial producer using precious metals Tanaka Kikinzoku Kogyo KK, the upward trend signals about the uncertainty of market participants about the further stability of the "American" amid the collapse of several banking institutions - Signature Bank and Silicon Valley Bank, which pushes investors to redirect their capital to more secure instruments of the market. The day before, holding a press conference, the US President Joe Biden announced his appeal to Congressmen with a petition to tighten regulatory measures in the industry in order to "minimize the probability of recurrence of bank failures". At the same time, the Fed and Treasury Department officials launched an emergency aid program for credit institutions, which will stimulate the sale of treasury securities at par, thereby increasing the necessary level of liquidity.
- Resistance levels: 1914.44, 1930.00, 1952.53, 1974.22.
- Support levels: 1900.00, 1878.84, 1869.49, 1857.27.