PREVIOUS TRADING DAY EVENTS – 20 June 2023
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Summary Daily Moves – Winners vs Losers (20 June 2023)
- The USDCHF has reached the top this week but with only 0.22% so far.
- The AUDJPY remained on the top for this month with 6.01% so far. It retraced significantly yesterday after a long path upwards that lasted for days.
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News Reports Monitor – Previous Trading Day (20 June 2023)
Server Time / Timezone EEST (UTC 03:00)
- Midnight – Night Session (Asian)
Two weeks ago, the RBA shocked markets by hiking rates. There is particular interest in the RBA (and BOC) because it had paused hikes earlier in the year but they resumed them. In the RBA monetary policy meeting, policymakers discussed that inflation in many economies remained well above central banks’ targets. Core inflation had remained sticky, not decreasing significantly. After 4:30 during this release, the AUD depreciated heavily against other currencies. AUDUSD moved downwards sharply by near 50 pips.
- Morning – Day Session (European)
No significant news announcements, no special scheduled releases.
General Verdict:
- Low volatility. The RBA Monetary policy meeting minutes release caused a shock for the AUD pairs with AUD depreciation.
- No significant news, sideways movement for the U.S. Stock Market.
- The DXY was moving sideways with low volatility.
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FOREX MARKETS MONITOR
EURUSD (20.06.2023) Chart Summary
Server Time / Timezone EEST (UTC 03:00)
Price Movement
The pair moved sideways around the mean with low volatility since no major scheduled releases were taking place. It is mirroring the DXY chart since the USD is the main driver.
AUDUSD (20.06.2023) Chart Summary
Server Time / Timezone EEST (UTC 03:00)
Price Movement
The pair fell rapidly after the Monetary Policy Meeting Minutes release. The AUD had depreciated greatly when the release took place at 4:30. The pair remained under the 30-period MA steadily falling until it found support at 0.67520 causing it to retrace back to the mean.
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EQUITY MARKETS MONITOR
NAS100 (NDX) 4-Day Chart Summary
Server Time / Timezone EEST (UTC 03:00)
Price Movement
The index signalled a stop for the upward trend as the price moved downwards crossing the 30-period MA and remaining below it. A sideways movement for now with low volatility is in place. Yesterday more volatility was observed after the market opening but we saw no significant one-sided direction. The market has not shown any turning point signs. We have to look closely at breakouts.
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COMMODITIES MARKETS MONITOR
USOIL (WTI) 4-Day Chart Summary
Server Time / Timezone EEST (UTC 03:00)
Price Movement
Crude moves sideways and around the mean being resilient in dropping. 71.30 USD/b is the price that seems to act as the short-term mean price. 72.20 is the important resistance level while 70 USD/b is the important support level to be taken into consideration when looking for breakouts.
XAUUSD (Gold) 4-Day Chart Summary
Server Time / Timezone EEST (UTC 03:00)
Price Movement
Gold’s path was mainly sideways since the 16th of June and remained sideways around the mean with more push to the downside. On the 20th at 15:30, the Building permits and Housing Starts figures were reported higher. At that time, Gold started to rapidly fall finding support at 1930 USD/b before retracing.
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News Reports Monitor – Today Trading Day (21 June 2023)
Server Time / Timezone EEST (UTC 03:00)
- Midnight – Night Session (Asian)
No significant news announcements, no special scheduled releases.
- Morning – Day Session (European)
Annual Inflation was reported higher than expected for the U.K. causing a surprise. It remains at 8.7%, the same as the previous figure. The GBP appreciated greatly and then reversed during the release. GBP pairs with GBP as base currency settled eventually downwards. EURGBP jumped.
At 15:30 significant releases for Canada, Retail Sales figures are to be announced and probably the CAD pairs will experience shock but not of such a high level.
The Fed Governor is due to testify about the Semi-Annual Monetary Policy Report before the House Financial Services Committee, in Washington DC at 17:00.
General Verdict:
- Higher volatility after the inflation-related data for the U.K. were released.
- Tomorrow the BOE is deciding on another hike.
- Powell’s speech probably is going to shake the markets and in particular, the USD pairs.
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Source: BDSwiss