USDCHF: Credit Suisse Group management can be held responsible
USDCHF trading pair is moving in moderate decline, being under the weak momentum of the "bears" that came earlier. The asset is held around 0.9140 continuing a decline, having updated the local minimum of March 23.
The "bears" are gaining advantage in the first half of the week amid the improvement of investors' mood, who appreciated the comments of the US bank First Citizens BancShares Inc, which announced about the redemption of considerable part of credit portfolio of the Silicon Valley Bank (SVB) liquidated the day before, which can significantly ease the insurance burden in the country, because the Treasury Department had assured the depositors of SVB about the open access to their deposits the day before. The positive news background was also reflected in the European region in the banking sector. So, by the end of March 27, Monday, a large German conglomerate Deutsche Bank became the leader in a "bullish" trend restoring positions lost since the end of the previous week.
- Resistance levels: 0.9150, 0.9200, 0.9258, 0.9300.
- Support levels: 0.9100, 0.9070, 0.9036, 0.9000.
USDCAD: Canada has assessed the recession threat
In morning trading USDCAD is testing the local lows of March 7, updated on March 23, being in the area of 1.3630, continuing to decline.
Meanwhile, the former head of the Canadian regulator Stephen Poloz said there are growing risks of a major recession in the national economy. The official was positive about the steps of the Financial Department in fighting the record dynamic of inflation that has already updated a 40-year high of 8.1% as the February statistics showed a decline in consumer prices by 5.2%, but regular tightening of monetary parameters, according to his comments, will not remain without consequences primarily for the real estate market and the investment climate. The official also saw positive dynamics in the employment situation, where an increase in workers due to the immigration flow of adult citizens due to the launch of a child care support program will be recorded, as well as increased funding for the healthcare system in the country with an additional 196.0 billion dollars in the next 10 years, which will be divided in the priority areas - family medicine, surgery equipment, mental health and improved data collection system.
- Resistance levels: 1.3650, 1.3700, 1.3750, 1.3800.
- Support levels: 1.3600, 1.3535, 1.3500, 1.3440.
AUDUSD: upward trend developing in the pair
The AUDUSD is testing the 0.6690 level in an attempt to develop upward momentum amid positive macro data in February.
Australia's retail sales gained 0.2%, having previously strengthened by 1.8%, thanks to rising spending by industries with a link to food group goods. For example, the value of restorations and cafes rose 0.5% and food retail sales rose 0.2%. Department store manufactured goods adjusted 1.0%, clothing and footwear gained 0.6%, and home goods showed zero movement.
The American currency is gradually losing ground near 102.200 USD Index, as there are no announcements of macroeconomic statistics at the beginning of the week, only the Conference Board consumer confidence figure was announced for the evening, which attracts enough attention among investors. Analysts expect the reading to fall to 101.0 from 102.9 last week, which would send a negative signal for the greenback.
- Resistance levels are at 0.6750 and 0.6890.
- Support levels: 0.6630 and 0.6500.
USDJPY: Traders activity has strengthened the asset around 130.90
The Japanese currency continues to move in a downtrend, being at 130.90 on the background of statements made by the management of the Central Bank of Japan.
The official again noted the continuation of the "dovish" vector in monetary parameters and keeping the key value in the negative zone of -0.10%, emphasizing that conditions for tightening of monetary parameters have not yet come due to the revision of the necessary time for inflation return to the level of 2.00% to increase it to the last forecast. A week earlier in the release, macroeconomic statistics showed consumer inflation correcting to -1.0% year-over-year from 3.3% and corporate services strengthened to 1.8% from 1.6% on a preliminary forecast of 1.5% due to renewed tourist arrivals and rising labor costs.
- Resistance levels: 134.70, 138.70.
- Support levels: 130.90, 126.90.