7 February 2023 Afternoon Session Analysis
Aussie rises after RBA announces rate hike.
The Aussie dollar, which was majorly traded by global investors, appreciated after the interest rate decision made by the Reserve Bank of Australia (RBA). The appreciation came from RBA raising its interest rate from 25 basis point to 3.35%, which is in line with the market expectation. However, the Aussie dollar’s gains were dragged down by the dovish statement from the governor of RBA Philip Lowe. In the communique, RBA expect the inflation to decline 4.75% this year and stand around 3% by mid of 2025, while maintaining the economic growth at a stable pace. This statement increased investors’ expectation that RBA will raise the interest rate more defensively to achieve a soft landing on their economy. At the same time, the uptrend trend of the Aussie dollar was boosted by the softening position of the US dollar this morning. Investors were taking profit after digesting the previous upbeat economic data. As of writing, the AUD/USD gained 0.77% to $0.6934.
In the commodities market, the crude oil price rose by 0.93% to $74.80 per barrel as of writing as markets are optimistic about China’s economic reopening. In addition, the gold price edged up by 0.39% to $1886.85 per troy ounce as of writing amid the weakening of US Dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
01:00 USD EIA Short-Term Energy Outlook
(8th Feb)
01:40 USD Fed Chair Powell Speaks
(8th Feb)
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 05:30
(8th Feb) |
USD – API Weekly Crude Oil Stock | 6.330M | – | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher following a prior breakout above the previous resistance level at 103.15. MACD which illustrated bullish bias momentum suggests the index to extend its gains toward the resistance level at 105.00.
Resistance level: 105.00, 106.65
Support level: 103.15, 101.25
GBPUSD, Daily: GBPUSD was traded lower following a prior breakout below the previous support level at 1.2105. MACD which illustrated bearish bias momentum suggest the pair to extend its losses toward the support level at 1.1940.
Resistance level: 1.2105, 1.2200
Support level: 1.1940, 1.1820
EURUSD, Daily: EURUSD was traded lower following a prior breakout below the previous support level at 1.0850. MACD which illustrated bearish bias momentum suggest the pair to extend its losses toward the support level at 1.0670.
Resistance level: 1.0850, 1.0975
Support level: 1.0670, 1.0295
USDJPY, Daily: USDJPY was traded higher following the prior breakout above the previous resistance level at 131.25. MACD which illustrated bullish bias momentum suggest the pair to extend its gains toward the resistance level at 134.15.
Resistance level: 134.15, 136.45
Support level: 131.25, 128.60
AUDUSD, Daily: AUDUSD was traded higher following the prior rebound from the support level at 0.6860. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 0.6985.
Resistance level: 0.6985, 0.7145
Support level: 0.6860, 0.6725
NZDUSD, Daily: NZDUSD was traded lower following the prior breakout below the previous support level at 0.6355. MACD which illustrated bearish bias momentum suggest the pair to extend its losses toward the support level at 0.6255.
Resistance level: 0.6355, 0.6460
Support level: 0.6255, 0.6170
USDCAD, Daily: USDCAD was traded higher following the prior breakout above the previous resistance level at 1.3400. MACD which illustrated bullish bias momentum suggests the pair to extend its gains toward the resistance level at 1.3505.
Resistance level: 1.3505, 1.3600
Support level: 1.3400, 1.3265
USDCHF, Daily: USDCHF was traded higher following a prior breakout above the previous resistance level at 0.9225. MACD which illustrated bullish bias momentum suggest the pair to extend its gains toward the resistance level at 0.9310.
Resistance level: 0.9310, 0.9405
Support level: 0.9225, 0.9110
CrudeOIL, Daily: Crude oil price was traded higher following prior rebound from the support level at 73.30. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains toward the resistance level at 76.10.
Resistance level: 76.10, 81.80
Support level: 71.50, 66.10
GOLD_, Daily: Gold price was traded higher following the prior rebound from the support level at 1859.90. However, MACD which illustrated bearish bias momentum suggests the commodity to undergo technical correction in short term.
Resistance level: 1884.00, 1900.00
Support level: 1859.90, 1835.00